Buying your first home in Illinois is more achievable than most people think, whether you’re looking at a bungalow on Chicago’s Southwest Side or a starter home downstate. Between assistance from the Illinois Housing Development Authority, veteran-specific benefits, and city-level grants, qualifying buyers can access tens of thousands of dollars in support before they even step foot in a home.
This guide breaks down the major programs available to first-time homebuyers in Illinois, including options specifically for veterans, so you know exactly where to start.
What Counts as a “First-Time Homebuyer” in Illinois?
You do not have to be a literal first-time buyer to qualify for most of these programs. In Illinois, you are generally considered a first-time homebuyer if you have not owned a home in the past three years. That means if you sold a home years ago and have been renting since, you likely still qualify.
The three-year requirement is typically waived for buyers purchasing in an IHDA-designated targeted area, and veterans are exempt from the first-time buyer requirement entirely, as long as they can provide a Certificate of Eligibility or DD214.
Statewide Programs
IHDAccess Home
This is IHDA’s flagship down payment assistance program and the largest of its kind the agency has offered. It provides 6% of the purchase price, up to $15,000, toward down payment and closing costs as a 0% interest second mortgage. There are no monthly payments, and the assistance is deferred for the full life of the loan, meaning it’s only repaid when you sell, refinance, or pay off your first mortgage. The first mortgage itself is a 30-year fixed rate and supports FHA, VA, USDA, and conventional (FNMA HFA Preferred or FHLMC HFA Advantage) financing.
To qualify:
- Must be a first-time buyer, or exempt as an eligible veteran or a buyer purchasing in a targeted area
- Meet household income limits, which vary by county. Cook County’s limit runs well above $130,000 for larger households, with figures set separately for counties like Winnebago, Sangamon, and Madison
- Purchase price limits also apply and vary by county
- Minimum credit score of 640
- Complete an IHDA-approved homebuyer education course
IHDAccess Forgivable
A smaller but simpler option: 4% of the purchase price, up to $6,000, given as assistance that is gradually forgiven on a monthly basis over 10 years. If you sell or refinance before the 10 years are up, a prorated portion comes due. It’s open to both first-time and repeat buyers statewide.
IHDAccess Deferred
This option provides 5% of the purchase price, up to $7,500, as an interest-free loan with no monthly payment. Unlike the Forgivable option, it isn’t forgiven; the full amount is simply deferred until you sell, refinance, or pay off the mortgage. Available to first-time and repeat buyers statewide.
IHDAccess Repayable
For buyers who want the largest assistance amount and don’t mind a modest added payment, Access Repayable offers 10% of the purchase price, up to $10,000, repaid interest-free in equal monthly installments over 10 years.
1st Home Illinois / @HomeIllinois
Available in select counties, including Boone, Cook, DeKalb, Fulton, Kane, Marion, McHenry, St. Clair, Will, and Winnebago, this program offers up to $7,500 in down payment assistance for buyers financing with a 30-year fixed-rate mortgage, and can get some qualifying first-time buyers into a home for as little as $1,000 out of pocket.
Note: Program availability, income limits, and assistance amounts change regularly and are administered through participating lenders, so confirm current terms with an IHDA-approved lender before applying.
Veteran-Specific Programs
Illinois is home to more than 500,000 veterans, and the state offers substantial benefits on top of the federal VA loan.
VA Loan (Federal)
The VA loan is one of the most powerful tools available to eligible veterans, active-duty service members, and surviving spouses. Key advantages:
- No down payment required
- No private mortgage insurance (PMI)
- Competitive interest rates, generally below conventional financing
- Flexible credit requirements
- Veterans with a VA service-connected disability rating are exempt from the VA funding fee, which otherwise applies as a percentage of the loan amount. That’s a meaningful upfront savings on any purchase.
IHDA Programs for Veterans
Veterans and their spouses are exempt from the standard first-time buyer requirement across all IHDA Access programs, meaning a veteran who has owned a home before can still access up to $15,000 through Access Home. Eligibility is confirmed with a Certificate of Eligibility or DD214.
Standard Homestead Exemption for Veterans with Disabilities (SHEVD)
Illinois offers one of the more generous veteran property tax benefits in the country. A veteran with a service-connected disability of 30% to 50% receives a $2,500 reduction in their home’s equalized assessed value (EAV). A disability rating of 50% to 70% increases that to $5,000. Veterans rated 70% or higher receive a reduction of up to $250,000 in EAV, which is often enough to eliminate property taxes on a primary residence entirely. An unmarried surviving spouse of a qualifying veteran may continue to receive the exemption. This benefit must be renewed annually through your local chief county assessment office.
Returning Veterans’ Homestead Exemption
Veterans returning from active duty in an armed conflict can claim an additional one-time $5,000 reduction in their home’s EAV for the year they return.
Specially Adapted Housing Exemption
Veterans who received federal Specially Adapted Housing funds to purchase or build a home may qualify for up to a $100,000 EAV reduction. This benefit is administered through the Illinois Department of Veterans’ Affairs rather than the county assessor.
Eligibility across these programs generally requires Illinois residency and an honorable discharge from the U.S. Armed Forces, Illinois National Guard, or U.S. Reserve Forces. Contact your local Veteran Service Officer or the Illinois Department of Veterans’ Affairs to confirm current eligibility.
City and County-Level Assistance Programs
Beyond state programs, several Illinois cities and counties offer their own down payment and closing cost assistance. Amounts and terms change as funding cycles open and close, so treat the figures below as a starting point and verify current availability directly with each program.
| City/County | Assistance | Notes |
| Chicago (BNAH) | Up to $100,000 | Building Neighborhoods and Affordable Homes Program; for income-eligible first-time buyers purchasing newly constructed homes within city limits; structured as a 10-year, 0% interest forgivable loan |
| Chicago (NHS/Neighborhood Lending Services) | Up to $30,000 | Down payment and closing cost grants for income-eligible buyers citywide, administered through a nonprofit lending partner |
| Chicago (Community Connections) | Up to $30,000 | For Chicago police officers, firefighters, and paramedics purchasing in targeted revitalization neighborhoods |
| Chicago (Chicago Housing Authority DPA) | Up to $20,000 | For CHA public housing residents or Housing Choice Voucher holders; up to $10,000 for other eligible applicants |
| Champaign / Champaign County | Varies | Local access to the full suite of IHDA Access programs plus IHDA Opening Doors, offering $6,000 forgiven over 5 years |
| Winnebago County / Rockford | Up to $7,500 | Through 1st Home Illinois, paired with a 30-year fixed first mortgage |
| DeKalb, Kane, McHenry, Will, St. Clair Counties | Up to $7,500 | Also eligible for 1st Home Illinois in addition to statewide IHDA options |
Most city programs require a homebuyer education course and income within a set percentage of the area median income. Availability is subject to annual funding, so applying early in a funding cycle matters.
Can You Stack Multiple Programs?
Yes, and in many cases you should. Veterans in particular can layer benefits effectively. For example, a veteran buying a home in Chicago could combine a VA loan (no down payment), IHDAccess Home assistance, and the SHEVD property tax exemption, significantly reducing both upfront costs and ongoing housing expenses.
Just make sure your lender is experienced with program layering. Not all lenders are IHDA-approved or know how to combine local and state assistance with VA financing, and using the wrong one can delay or complicate closing.
Where to Start
- Get your Certificate of Eligibility (COE). More information can be found on PJMC’s VA Loan page.
- Find an IHDA-approved lender to explore Access Home, Access Forgivable, Access Deferred, and Access Repayable at ihdamortgage.org
- Complete an IHDA-approved homebuyer education course, which is required by most programs
Illinois has a lot to offer first-time buyers, and the programs above are a strong place to start. If you have questions about how these programs might work with your mortgage, reach out to a Perry Johnson Mortgage Company loan specialist. We work with buyers across Illinois every day and can help you figure out which combination of benefits makes the most sense for your situation.
Information current as of publication. Program terms, income limits, assistance amounts, and funding availability are subject to change. Always verify details with a licensed lender or program administrator before applying.