Habitat Illinois Building Impact

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What is the Habitat Community Impact Fund Program?

hibi-statelogoThe 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

 

Grant Highlights:

  • 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
    household
  • 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

 

Downloads

Application for Down Payment Assistance

IHDA Income Calculator – Trust Fund

CFR Part 5 Definition of Annual Income

2017 Income Limits

HFH Quarterly Report

HFH Pre-Closing Checklist

HFH Disbursement Checklist

Authority for Release of Information

Request for Payment Certification – Project

Closing Instructions Memo

Homebuyer Counseling Form

Monthly Homebuyer Housing Debt Worksheet

Assistance Impact Letter

HFH CIF R3 Reservation Manual and Document Uploading Guide

HFH CIF Round 3 – Fillable Form of Junior Mortgage

HFH CIF Round 3 – Fillable Form of Promissory Note

HFH Program Manual R3

 

 
*Provided, however that if (x) property is sold or otherwise transferred within five (5) years of making the loan, other than by inheritance to a co-owner of the property or by operation of law upon the death of a joint tenant or to a spouse as a result of a divorce of co-owners, or (y) the household ceases to occupy the home as their principal residence with this five (5) year period or (z) a refinancing of the home resulting in the household being allowed to receive a cash payment, the household shall repay to IHDA the amount of the loan reduced by one-sixtieth (1/60th) of that amount out of net proceeds for each full month the household occupied the property. Please see IHDA Note and Mortgage for more information.