You can still apply with a SmartBuy lender, but they will be unable to reserve funding and lock in your interest rate without a property selected. Discussing your plans with a SmartBuy lender or certified housing counselor is a good first step.

Funding availability is not guaranteed until the lender places a complete reservation with IHDA Mortgage. A completed reservation does not constitute a loan approval by IHDA Mortgage or the SmartBuy lender.

SmartBuy can only be used towards the purchase of a new primary residence. You can currently own a home and buy a new primary residence using SmartBuy; your lender will determine if you can qualify while being obligated to two homes if you choose to retain your existing property.

SmartBuy assistance cannot be applied retroactively to a recent home purchase, borrowers must be buying a new primary residence to be eligible.

The SmartBuy student loan assistance is the sum total of the borrower's (or borrowers' if you have a co-borrower) student loans or $40,000, whichever is lowest.

The optional $5,000 down payment assistance is a fixed amount.

Both forms of assistance are NOT dependant on the purchase price or 1st mortgage loan amount. IHDA Mortgage does set a minimum purchase price or minimum loan amount on any of our programs.

No, you do not need to be a current Illinois resident to apply. As long you as plan to move and occupy the new home you are buying (in Illinois) as your primary residence within 60 days of closing, you can live out of state and still apply. Your lender will review the subject property address and your place of employment to verify that it will be your future primary residence.

SmartBuy requires a FICO® mid-score of at least 640. This means of the three credit bureaus, the highest and lowest scores are set aside, and the middle score is used to determine eligibility.

IHDA Mortgage will accept less than three scores as long as the lowest score, or only score, is 640 or higher and the automated underwriting system review results as Approve/Eligible (your SmartBuy Lender will run this and advise). A Co-borrower with no credit scores is allowed with automated underwriting approval.

A FICO® credit score of 640 (or above) does not guarantee approval, as your lender will underwrite the file based on all program requirements.

If you have concerns about your credit score, talk with an certified housing counselor. They can help review your report and advise you. You can locate one here on our website: https://www.ihda.org/my-home/getting-an-ihda-loan/#findCounselor.

For additional reference, this guide published by the Consumer Financial Protection Bureau has instructions on how check your credit report for free, and what to look for.

The free report option will not show the credit scores used by lenders to determine eligibility, but you can check to see if there are any errors reporting, such as late payments or collections that are inaccurate.

You can view both the income and purchase price limits on this page. If your annual income exceeds the limits for the county you are buying in, you are not for IHDA Mortgage programs (including SmartBuy).

IHDA's income calculation method can be different than what may be on your W-2, so if your income is very close to the limit (either higher or lower), talk to an approved lender so they can run the numbers and confirm if you are eligible.

To apply, call or apply online with any of the lenders featured on this page. Additionally, you can fill out the "Request Info" form at the top of the this page, which will send you an information kit explaining the process and which documents to have ready.

The following property types are eligible for SmartBuy Financing:

• Single-family

• Condominiums - (contingent on condo review by U.S. Bank or the lender - IHDA does not review/approve condo projects)

• 2-Unit (owner-occupied)

• Townhouses

• New Construction (completed, ready to live in)

• Properties in community land trusts

• Modular (not manufactured) homes

The following property types are NOT eligible for SmartBuy financing:

• Manufactured homes

• Mobile homes

• Log homes

• Dome homes

• Properties over 5 acres

• Most mixed-use properties

• Properties situated on multiple parcels in which the other parcel is deemed "buildable" by the appraisal (non-buildable may be acceptable upon review).

We leave that decision to you! You can choose from any lender listed on this page regardless of where in Illinois you are buying. You can search to see if your local bank is an approved SmartBuy lender or select a lender who specializes in the region you are buying in.

All SmartBuy lenders are required to offer the same interest rate, they will not vary from lender to lender.

We recommend getting to know your loan officer and setting up a preferred method of communication. Effective communication is critical in the homebuying process.

Yes, so long as you meet all the program requirements and SmartBuy funding is available, your lender can switch you into the program.

Please note, if your file has already been approved under a different IHDA Mortgage program, your lender will have to re-underwrite the file, potentially delaying your closing. Talk with your loan officer as soon as possible if you want to switch into SmartBuy.

Cosigners are not permitted with IHDA Mortgage programs, but co-borrowers are allowed so long as they occupy the property as their primary residence within 60 days of closing and meet all program requirements. IHDA Mortgage programs do not allow for non-occupying co-borrowers.

Your lender will verify that both you and the co-borrower(s) will be occupying the property as a primary residence by looking at the location of your employment in relation to the property and other factors to confirm future occupancy.

Reach out to an approved SmartBuy lender to find out the current interest rates. IHDA Mortgage rates can only be quoted by approved lenders and will not vary from lender to lender. All IHDA Lenders are required to offer the same daily interest rates.

Yes, all IHDA Mortgage programs require pre-purchase education. You can find additional information and approved providers here. Please note if your debt to income ratio is above certain thresholds, a specific course may be required. Check with your SmartBuy lender before enrolling in a course.

The debt must be from an eligible educational institution that is an accredited:

• public, nonprofit, or proprietary (privately owned profit-making) college

• university

• vocational/trade school

• postsecondary educational institution

The institution must be eligible to participate in a student aid program administered by the U.S. Department of Education. (Most accredited postsecondary institutions meet this definition.)

Parent PLUS loans cannot be paid off with SmartBuy assistance, that will need to be paid with the borrower's funds (or eligible gift funds).

SmartBuy cannot pay off student loans that are in default or delinquent status. The debt must be brought current prior to underwriting to be eligible for the program.

Loans that are in deferred status or that are in income based repayment plans are still eligible to be paid of via the program.

SmartBuy requires that all student debt belonging to the borrower be paid off at closing. So long as this requirement is satisfied, currently being a student does not necessarily disqualify borrowers from the SmartBuy program.

All borrowers are required to sign and attest to the all student debt that exists and/or is expected to exist at the time of closing.

Yes, per the program rules, at least one borrower’s total student debt must be paid off in full. No partial payments are allowed for any borrower. Co-borrowers can elect to leave their student loans outstanding.

Whichever borrower (or both) utilizes the SmartBuy assistance, then all of that borrower's (or borrowers') student loans must be paid off at closing.

If the SmartBuy Assistance ($40,000 maximum) is less than the total student loan debt of the borrower’s debt you will need to pay additional money at closing to cover the shortage or if allowed, properly sourced gift funds (check with your lender if gift funds are an option for your file).

SmartBuy can be used to purchase a primary residence anywhere within the State of Illinois. It cannot be used to finance properties located out of state.

Lending guidelines require a waiting period before you can purchase a home after a foreclosure or bankruptcy. These waiting periods can vary depending on the loan type and type of bankruptcy or foreclosure. The SmartBuy lender will determine eligibility based on your credit report and supporting court documentation.

Yes, as long as you meet the applicable guidelines. Your loan officer will review those with you as they apply to your individual application.

No, the rate reserved by the SmartBuy lender is the rate that applies to the transaction.

No, SmartBuy is a standalone program. In some cases, SmartBuy may be combined with grants or down payment assistance from other organizations assuming it falls within program requirements such as lien position and the loan-to-value ratio.

IHDA Mortgage does not maintain a database of other organization's programs, if you have a specific program in mind, your lender can review and see if it can be used in conjunction with SmartBuy for your transaction.