The Illinois Hosing Development Authority and other government subsidies are encouraging home buying once again – and now, more then ever – is the time to take advantage of IHDA grants available to first time homebuyers. Interest rates are at a record low for individuals looking to purchase with an IHDA grant (between 3.875% and 4.250%) and many buyers can qualify for up to $12,000 to cover down payment and closing cost assistance. When you are talking about the areas MACK Estates and rentMACK purchase in – with an average sales price of $135,000 – the assistance that can be provided to cover the required 3.5% down ($3,500) on a home makes it a no brainer for individuals to get into the buying market.
There is a common misconception around the IHDA grant I’ve seen come around quite a few times and that is that assistance is only for low-income individuals. That’s simply not the case. Any first time homebuyer that falls below the 80th percent of the area median income (AMI) can qualify for some type of assistance. You can view a snapshot of the AMI for a community by using tools like https://sites.google.com/site/illinoismortgagelimits/hud-median-income-limits or by talking to your lender directly. You can check which areas the IHDA grant covers by visiting their website. The targeted areas for Cook Country alone are nearly 710 pages long.
Right so what is the catch here? Are we allowing unqualified buyers access to a market and entry into payments that they can’t make? NO. It seems that we may have learned our lesson from 2006 – 2009 and although these grants make it easier for first time home-buyers to qualify for a home, there are still qualifications and strict systems in place to ensure buyers can make the monthly payments they are set up for. Simply put – the government is encouraging first time home-buyers and offering assistance to get them in the door. Home sales have the potential to rocket in targeted areas serviced by IDHA assistance and this means a lot of great things for the market as a whole. The inventory available in the IDHA serviced markets are homes either needing redevelopment or that have been redeveloped. For MACK Estates and rentMACK – with the area’s best redevelopment product – we have seen an increase in home sales and encourage many of our buyers to see if they qualify for assistance. If the government is going to help you get into your first home – let them. The market is coming back and with product like MACK Companies’ homes available for sale it’s simply – Time. To. Buy.