What is the Habitat Community Impact Fund Program?
The Habitat program is a grant generously provided by Illinois Housing Development Authority (IHDA) to Habitat for Humanity of Illinois (HFH Illinois). The grant is for $1,000,000 to provide down payment assistance for Habitat homebuyers. The funding agreement will allow HFH Illinois to make forgivable loans to qualifying Llow, and Very Low Income Habitat families to buy down the sales prices to ensure the mortgage does not exceed 30% of gross monthly income.F A Q s
- The loans will be made to facilitate the acquisition of homes across Illinois.
- Each loan will be in an amount capped at $20,000 for Very Low Income Households, and $15,000 for Low Income Households.
- Each loan will be interest-free and have a term of five years.
- Each loan will be forgiven at the rate of one-sixtieth (1/60th) of the amount of the loan at the end of each month over the term period.*
How to Qualify:
- To qualify as Low Income, the applicant’s household must have an income that is less than or equal to eighty percent (80%) of the area median income for the metropolitan statistical area or county in which the home is located (Using HUD’s Part 5 Income Definition).
- To qualify as Very Low Income, the applicant’s household must have an income that is less than or equal to fifty percent (50%) of the area median income for the metropolitan statistical area or county in which the home is located (Using HUD’s Part 5 Income Definition).
- All homes, households, and contractors must comply with all federal, state and local governmental approvals required by law.
- The Housing Debt to Income ratio for the household must be thirty percent (30% ) or less
- The Total Debt to Income ratio for the household must be forty-one (41%) or less
Grant Application Components:
- IHDA Housing Application
- IHDA Income Calculator
- Certificate of Income
- Fully executed purchase contract
- Commitment from conventional lender or other institution to make 1st mortgage loan to household
- Current appraisal of home showing value of home not exceeding the amount of the first mortgage loan to the
- Copy of calculations by affiliate showing debt-to-income ratio under 30% (housing) and 41% (total). (see IHDA
Monthly Homebuyer Housing Debt Worksheet)
- Copies of executed note and mortgage for Habitat mortgage loan (Originals are sent to IHDA)
- Certificate of housing counseling (Form and Certificate are sent to IHDA)
- Home owners’ insurance policy with IHDA listed as additional insured
- Title commitment
- Copy of calculations by sponsor showing debt-to-income ratio of under 35% (housing) and 41%(total)
- Copy of note and mortgage for 1st mortgage loan
- Certificate of Counseling