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Building a Way Towards Forgivable Loans

by Chicago Agent

The Illinois Building Blocks Pilot Program aims to help fill vacant homes and create more affordable housing for buyers.

A new state program, the Illinois Building Blocks Pilot Program, might sound childish, but it aims to help accomplish something big: fill vacant metro Chicago real estate and create affordable housing in six Chicago-area cities hit hardest by the foreclosure crisis.

According to the Chicagoland Real Estate Forum, the program received $55 million from Illinois and Cook County to help stabilize the communities of Berwyn, Chicago Heights, Maywood, Park Forest, Riverdale and South Holland by rehabbing vacant, foreclosed properties and turn them into affordable housing. The program is currently looking for eligible buyers interested in purchasing a vacant home in one of those communities.

The program will provide up to $10,000 within a period of two years in a forgivable loan for down payment and closing cost assistance, and buyers will receive a 30-year, fixed-rate mortgage at an affordable interest rate. There are income restrictions, but first-time buyers aren’t the only homebuyers eligible for the program, and even those with poor credit scores can apply..

A one- or two-person household can have a household income of no more than $89,760 and must purchase a home in one of those communities at a cost of no more than $373,760.

For households of three or more, the combined income can be no more than $104,720 and the cost of the home can be no more than $478,373.

If you have any clients who meet these requirements, you must find a participating lender, which includes First Mortgage Corp., Harris Bank, U.S. Bank and Wells Fargo.

For more information on the Illinois Building Blocks Pilot Program, visit ihda.org.

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