Partner FAQs

TPO Connect

The IHDA Mortgage reservation expired but we still intend to close the loan. Can you grant an extension?


IHDA Mortgage does not process extensions, as long as you still intend to deliver the loan and notify us as to the loan status we will keep the reservation active if you so request. Please see below for our full policy as taken from the procedural guide: When the commitment/reservation is made, the interest rate is locked for 60 days regardless of future rate changes. IHDA/U.S. Bank HFA Division must purchase loans by the 60th day. If a loan has not been purchased by the 60th day, a 25 bps reduction in Service Release Premium (SRP) will be made for every 30 days past the initial 60-day lock period. If a loan has not been purchased by the 90th day, IHDA is under no obligation to purchase the loan(s). All loans must close at the interest rate reserved in TPO Connect, which is confirmed by the reservation confirmation located in TPO Connect. Discount/buy down fees cannot be charged to the borrower on an IHDA loan. On any loan in which the Lender expects to deliver at 90 days or after, the Lender must contact IHDA (mortgage@ihda.org) informing that it is still an active file and requesting postponement of the cancelation. IHDA must make an approval/acknowledgment and TPO Connect must be noted accordingly by IHDA staff. After cancellation, IHDA will not allow a re-registration by the same borrower(s) for 60 days unless the borrower has obtained a contract on a different property. It is suggested that a Lender reserve/commit the loan when the appraisal has been received and the loan file is fully complete. Once a loan is reserved/committed, the Lender will perform a review of the loan file for tax code compliance and for credit underwriting - each of which is a separate and unique review.




How can I extend my rate lock / reservation?


IHDA Mortgage does not process extensions, as long as you still intend to deliver the loan and notify us as to the loan status we will keep the reservation active if you so request. Please see below for our full policy as taken from the procedural guide:

When the commitment/reservation is made, the interest rate is locked for 60 days regardless of future rate changes. IHDA/U.S. Bank HFA Division must purchase loans by the 60th day. If a loan has not been purchased by the 60th day, a 25 bps reduction in Service Release Premium (SRP) will be made for every 30 days past the initial 60-day lock period. If a loan has not been purchased by the 90th day, IHDA is under no obligation to purchase the loan(s).

All loans must close at the interest rate reserved in TPO Connect, which is confirmed by the reservation confirmation located in TPO Connect. Discount/buy down fees cannot be charged to the borrower on an IHDA loan.

On any loan in which the Lender expects to deliver at 90 days or after, the Lender must contact IHDA (mortgage@ihda.org) informing that it is still an active file and requesting postponement of the cancelation. IHDA must make an approval/acknowledgment and TPO Connect must be noted accordingly by IHDA staff.

After cancellation, IHDA will not allow a re-registration by the same borrower(s) for 60 days unless the borrower has obtained a contract on a different property. It is suggested that a Lender reserve/commit the loan when the appraisal has been received and the loan file is fully complete. Once a loan is reserved/committed, the Lender will perform a review of the loan file for tax code compliance and for credit underwriting - each of which is a separate and unique review.




ATTENTION: IHDA is now using TPO Connect for all reservations, for information and instructions click here.


Visit the TPO Training Portal on how to use TPO Connect and for additional FAQ.




I have a question on a specific file, what do I do?


For questions regarding a specific file, please review the following steps.

Please contact the assigned Compliance Officer; their contact info is located

  • within the email sent out after the initial review

or

  • in TPO Connect: click on the human silhouette icon found on the right side, either in your pipeline or within a specific loan. This will give you the Compliance Officer’s name & email address.





Underwriting

How do I run AUS on an IHDA Mortgage loan?


All IHDA conventional loans should be run either:

  • Through DU as FNMA IHDA Mortgage loans should be run through AUS as HFA Preferred
  • Through LPA as FHLMC HFA Advantage.

HomeReady and other programs are not acceptable.

LPA is only acceptable when using FHLMC, FHA, and VA loans. FHLMC cannot be run through DU. VA and FHA must be run through DU or LPA with the appropriate 30-year purchase loan template selected.

All USDA loans must be run through GUS (Guaranteed Underwriting System) with an approve/accept decision.




Are manually underwritten loans permitted?


No, IHDA does not allow manually underwritten loans.




Does IHDA Mortgage allow non-occupying co-borrowers?


No, anyone on the Mortgage and Note must also occupy the subject property as their primary residence.




Does IHDA Mortgage have a minimum loan amount?


No, IHDA Mortgage does not have a minimum loan amount. High cost loans are not accepted.




Does IHDA Mortgage allow for high cost mortgages? How about "higher priced" mortgage loans?


High cost is not allowed by US Bank and/or IHDA Mortgage. IHDA Mortgage has no overlay regarding higher priced mortgaged loans. See excerpt from our procedural guide for details:

  • High Cost
    • NOT allowed by U.S. Bank and/or IHDA Mortgage
  • High Price
    • U.S. Bank and IHDA Mortgage allow when U.S. Bank runs a test via the Federal Financial Institutions Examination Council (FFIEC).




How should I disclose an IHDA mortgage? Are LE's (Loan Estimate) and CD's (Closing Disclosures) required?


Effective on all reservations as of October 1, 2017, IHDA follows TRID guidelines on all 1st and 2nd mortgages and requires an LE & CD for both mortgages (excluding I-Refi), regardless of if there is a payment or not. On the 2nd mortgage, only recording fees are allowed.




Are there any exceptions for the 640 minimum FICO credit score?


Minimum credit score of 640 is required for all loan types. IHDA Mortgage will accept less than three scores as long as the lowest score, or only score, is 640 or higher and AUS is Approve/Eligible. Co-borrower with no credit scores is acceptable if AUS is Approved/Eligible. Keywords: FICO, Credit, minimum




What is IHDA Mortgage's maximum CLTV (Combined Loan to Value)?


We do not have an overlay on CLTV. Please defer to the Agency guidelines for the appropriate loan type.




Does IHDA Mortgage allow borrowers to buy down the interest rate?


No, the rate reserved in TPO Connect is the rate at which the loan must close.




Does IHDA Mortgage allow for principal reduction / curtailment?


Yes, we have no overlays restricting this. Upon delivery of the closed loan to U.S. Bank, the lender must provide pay history.




What is the maximum cash back to the borrower? How do I calculate this?


Borrowers can leave the table with $250 plus anything above and beyond the borrower’s minimum investment of 1% or $1,000, whichever is greater (all other funds should be used for principal reduction).
Borrower Contributions (appraisal fees paid by borrower, EM deposit, POC, etc.)
Minimum Required Investment (greater of 1% or $1000)
= Allowable Cash Back to Borrower
+ $250

= Maximum Cash Back to Borrower Any amount greater than the Maximum Cash Back to Borrower or any non- borrower contributed credits (tax proration, seller credit, lender credits, etc.) that may be due to the borrower must be applied to principal reduction.




What fees can be charged on IHDA 2nd Mortgages?


The ONLY fee allowed to be charged on an IHDA 2nd mortgage is the recording fee.




What PMI (private mortgage insurance) companies are we allowed to use? Can we choose our own?


Lenders are required to use a U.S. Bank approved PMI company. The currently approved companies are:
1) Mortgage Guaranty Insurance Company (MGIC) 2) Radian Guaranty 3) Arch 4) Essent Guaranty 5) Genworth (Formerly GE) 6) National




What is IHDA Mortgage's maximum allowable DTI (debt-to-income) limit?


Our limit is 45.00% on all programs.




I see "must be a first-time homebuyer or exempt" referenced, who is exempt from the first-time homebuyer requirement?


Exempt in this instance is defined as a qualified veteran (borrower must be a veteran), or a borrower purchasing a property in a targeted area. Note that if only the spouse is a veteran, the spouse must also be a borrower/mortgagor and obligated on the note. A COE or DD214 showing honorable discharge is required in the closing package uploaded to IHDA.




Can IHDA Mortgage loans be closed in trust?


IHDA Mortgage loans may not close in trust. Please remember to check the U.S. Bank HFA guide for additional credit and closing requirements.




What is the maximum LTV (loan-to-value) allowed?


For 1-Unit Properties*

  • FHA = 96.5%
  • VA= 100.0%
  • USDA= 100.0%
  • CONV (HFA PREFERRED) = 97.0%
For 2-Unit Properties*
  • FHA = 96.5%
  • VA= 100.0%
  • USDA= NA
  • CONV (HFA PREFERRED)= 95.0%




Does IHDA Mortgage require a full VOE (verification of employment) on every file?


No, it may be requested if the pay stubs show that any borrower receives a bonus, overtime, or other sporadic income or when total income calculation puts income near the income limit.

For prior employment, a verbal VOE is acceptable.




What is the maximum deductible for homeowner's insurance? What about flood insurance?


IHDA Mortgage does not have overlays regarding homeowner's insurance coverage. Please defer to U.S. Bank guidelines.




We have a household member who is 18+, what do we need to document their income (or lack of)?


Lenders are no longer required to document income from any source other than those liable or secondarily liable on the Note.




Does IHDA Mortgage require an Illinois Anti-Predatory Lending Database certificate?


IHDA requires both first and second mortgages to be in compliance with the State of Illinois Anti- Predatory Lending Database (APLD) program requirements. For information regarding APLD requirements, refer to the APLD website ( https://www.ilapld.com/Overview.aspx).




What is the minimum borrower contribution/investment? Do gift funds or tax prorations count towards this requirement?


Please see below, as taken from the IHDA Procedural Guide: Borrower must contribute a minimum investment to the transaction, which is required to be the greater of 1% of the purchase price or $1,000.00, which will be evidenced on the Loan Estimate and Closing Disclosure.

  • The borrower may not use the tax proration toward the borrower's minimum investment, those funds must be from the borrower's own funds or if allowable by the AUS (DU, etc.) from properly sourced gift funds.
  • Earnest money, appraisal paid by borrower, inspection paid by borrower, pre-paid insurance paid by borrower, and money brought to the table can count towards their minimum investment. Please list any borrower pre-paid items on the CD as “POC.”




My borrower has a dependent or current household member who will not be occupying the new property. What documentation is required to exclude their income (if any) from household income calculation?


It is the borrower’s responsibility to properly disclose all household members. IHDA Mortgage requires that the borrower sign a letter of explanation detailing the new address of the current household member. This letter should be consistent with information provided on the IHDA Income Certification. This information must be verified for tax code purposes.




We have a non-borrowing spouse involved in this IHDA Mortgage transaction, what do we need to include in our file?


For IHDA tax code compliance, a person is either married or single; there is no gray area. Both borrower AND spouse need to be qualified in cases where spouse is not borrowing. It must be verified that borrower AND spouse are first-time homebuyers or Exempt, even if the non-borrowing spouse will not be residing in the property.

Include in the file,

  • IHDA Borrower Affidavit signed prior to closing
  • Copies of his or her signed and dated federal income tax returns (or transcripts directly from IRS) from the most recent three (3) years, including all attached schedules
    • If the non-borrowing spouse was not required to file taxes,
      • Include a signed and notarized IHDA Mortgage Tax Affidavit for the years they did not file.




My borrower is purchasing a two-unit property, should I include the rent in the IHDA household income calculation?


No, future rental income should NOT be included in the income calculator. Defer to the agency guidelines for the loan type when using it to qualify.




How does IHDA calculate student loans that are deferred or on an income-based repayment?


IHDA has no overlays regarding student loan payment calculation, defer to the agency guidelines specific to the loan type.





Realtor FAQ

I don’t consider my buyers to be low income. Why should they consider an IHDA Mortgage program?


Qualified homebuyers can receive up to $10,000 in down payment and closing cost assistance – and it might surprise you who is eligible. See IHDA Mortgage’s income and purchase limits for additional eligibility information.




What are the Purchase Price limits to be eligible for IHDA Mortgage’s loan programs for a single-family home?


Please refer to IHDA Mortgage’s income and purchase limits for more information.




What are the Down Payment Assistance products available with IHDA Mortgage?


Please visit our Program Directory for detailed information on all programs currently being offered.




I'm having a housing event and would like marketing materials with IHDA Mortgage information, is this available?


Yes! Check out our marketing center for fillable co-branded flyers! If you have specific requests or flyers that need reviews, please email mortgage@ihda.org.





General

What is IHDA's EIN number (employer identification number)?


IHDA’s EIN is 36-2708817




How do I become an IHDA Mortgage lender?


See this page for lender requirements and forms.




What are the Down Payment Assistance products available with IHDA Mortgage?


Please visit our Program Directory for detailed information on all programs currently being offered.




We have found an error on a document and the title company needs to re-record, who do I contact?


Please email Portadmin@ihda.org and cc the compliance officer who reviewed the file. Please include the loan number and last name in your email subject line. In the email please include:

  1. Loan number
  2. Borrower full name
  3. Subject property address
  4. Name of document being requested
  5. Where to send
  6. Name of requester
  7. Phone contact




My borrower is refinancing and would like to re-issue the MCC (Mortgage Credit Certificate). What is the process for this?


Please visit this page for instructions.




I would like to request a training for my staff, who do I contact?


Please contact one of our account managers to set this up.




How do I recertify as an IHDA Mortgage lender?


Recertification is due March 31st every year. Please visit this page for detailed instructions.




My borrower received a letter about recapture tax, what is this all about?


Please direct your borrower to visit this page for more information.




How do I order a payoff or a release?


For specific information on servicing, subordination information, and how to request a payoff or release, please visit this page.





Documentation Requirements

How many months of bank statements do IHDA Mortgage programs require?


IHDA has no overlays on this. Bank statements must be provided as required by Agency guidelines/AUS.




Does IHDA Mortgage allow for use of Power of Attorney (POA) on IHDA Mortgage documents?


IHDA Mortgage allows POAs for all documents signed at closing, provided that all POAs on IHDA Mortgage files follow applicable Agency regulations, State laws, and any overlays set forth by IHDA’s Master Servicer, U.S. Bank. The POA must be specific to the transaction. Note: VA loans require a special form - without it, the loan is not saleable. IHDA Mortgage does NOT allow POA on all pre-closing documents signed by borrower or non-borrowing spouse unless there is an extenuating circumstance such as an active military member stationed overseas. Management must approve all these exceptions.




Can IHDA Mortgage documents be electronically signed? Do they require notarization?


Yes, IHDA Mortgage does allow for electronic signature on all documents except the mortgage note. Notarization is not required on IHDA documents that are electronically signed. For full detail, see excerpt below from our Procedural Guide:

All electronic signatures must be in accordance with Electronic Signature Performance

Standards and must comply with all Federal, Agency, and state guidelines including requirements of the E-Sign Act (Global & National Commerce Act/UETA) and State law. Note and Mortgage must be “live” signature. When recertifying annually lenders will certify to this and then be authorized to use electronic signature. When doing so, notary is not required.

Please note, this does not apply to U.S. Bank documents, which does not allow electronic signature on the following documents: Ineligible Documentation Refer to the Funding Documentation Requirements in the Delivery and Funding section 900 of the Seller Guide.
  • Notes or Modifications
  • Power of Attorney
  • Documents creating Revocable Trusts
  • Any document requiring Notarization (i.e. Security Instrument, Riders, etc.)
  • IRS and Social Security Administration documents. Although the IRS accepts an e-signed 4506-T, U.S. Bank is unable to process e-signed forms with the IRS, at this time. U.S. Bank will announce when the 4506-T will be accepted with an electronic signature.




How long is homebuyer education / pre-purchase counseling good for? When does it expire?


We accept certificate of completion of homebuyer education dated up to one year from completion date.




What are acceptable homebuyer education courses?


Please visit this page for information.





Taxes

Do you need tax returns for a non-borrowing spouse?


Borrowers with non-borrowing spouse that are married filing jointly, the non-borrowing spouse must also sign and date the tax return unless there are tax transcripts. Non-borrowing spouses that filed taxes separately are required to have:
• Proof of filing taxes using signed and dated most recent three years of tax returns (proof of no prior homeownership is the reason) If the non-borrowing spouse did not file taxes, they are required to have the following,
• Signed and notarized Tax Affidavit for the years they did not file




The borrower was not required to file federal taxes, what do I need to provide to IHDA Mortgage?


Complete and execute the IHDA Tax Affidavit found in the document library. In addition, (when applicable) provide an LOX stating they had no income for that period or provide the IHDA Zero Income Certification also found in the document library. Keywords: Unemployment, taxes, income, transcripts




How many years of federal tax returns are required? Are transcripts acceptable in lieu of returns?


All IHDA mortgage programs require the most recent 3 years of tax returns OR tax transcrips for both first-time and non first-time homebuyers. Either are acceptable as long as the most recent 3 years are represented.





Title and Escrow

The borrower is buying a home with $0 property tax bill as the former owner was exempt. How should we handle this per IHDA guidelines?


We defer to Agency and U.S. Bank guidelines. You should be able to project the tax amount by contacting the county assessor's office to obtain the applicable non-exempt tax rate for that property and multiplying that amount against the current assessed value. Your title company should also be able to verify the applicable property taxes.




Does IHDA Mortgage allow for repair escrows (escrow holdbacks)?


Yes, up to $1500.00. We require appraisals to have no "subject to" conditions. IHDA Mortgage requires the home to be habitable/livable at the time of closing and have no overlays specific to repair escrows. Please defer to U.S. Bank/Agency guidelines for eligibility specifc to repair escrows.




Does IHDA Mortgage require a CPL (closing protection letter) with the file?


U.S. Bank requires a CPL to be provided with every 1st mortgage. A separate title policy for IHDA second mortgages is not permitted, therefore you will not need to provide a CPL. Only recording fees may be charged to the second mortgage.




Is title required on IHDA Mortgage 2nd mortgages?


IHDA Mortgage does not require allow separate title policies on IHDA 2nd mortgages. Only recording fees may be charged to the second mortgage. Please defer to Agency/U.S. Bank guidelines for title requirements on 1st mortgages.




What is IHDA's mortgagee clause?


List U.S. Bank on all HOI documentation:

U.S. Bank National Association
Its Successors and Assigns as Their
Interest May Appear
C/O U.S. Bank Home Mortgage
P.O. Box 961045
Fort Worth, TX 76161-0045





Property Eligiblity

Can IHDA Mortgage borrowers own other property and qualify for an IHDA Mortgage  program?


Yes, IHDA Mortgage does not restrict borrowers from owning other property. However, these borrowers would not be considered first-time homebuyers (if the property is residential) unless the borrower is exempt from first-time homebuyer requirement. Exempt parties include qualified veteran (borrower must be a veteran), or property is in targeted area. (Note that if only the spouse is a veteran, the spouse must also be a borrower/mortgagor and obligated on the note.) Lenders should follow agency guidelines for documenting other property owned (rental and otherwise) to be included in qualifying ratios. Borrowers must occupy the subject property as their primary residence within 60 days of closing.




What is the maximum allowable property size?


Qualified Dwelling must be equal to or less than five (5) acres




What property types are eligible for IHDA Mortgage programs?


Qualified Dwellings can be any of the following 1-2* unit residences:

  1. Single family detached home
  2. Townhome
  3. Condominium unit (FHA/HUD, VA, FNMA, or FHLMC approved) must be warrantable/approved. Must be reviewed by U.S. Bank if Lender is not delegated by U.S. Bank to review (see chart on page 20).
  4. Planned Unit Development (PUD) – single family
  5. Duplex unit or zero lot line home, provided that a maintenance agreement is of public record
  6. Two-unit (one building) – as allowed by Agency Guidelines

* For two-unit properties, all borrowers on loan must provide certification of landlord counseling before close, minimum investment and reserves must be met per Agency guidelines, and AUS findings must be followed. Borrower must occupy one of the two units as their primary residence. FHLMC HFA Advantage does not allow 2-unit properties.

Note: Co-op apartment units, manufactured, mobile, log homes, dome homes, any property with unresolved “subject to” on appraisal and any property over 5 acres are not eligible. IHDA does not permit anything above two (2) unit properties at this time. Remember that a specific program may limit property type.




Does IHDA Mortgage approve condos?


No, condo review must be completed by U.S. Bank unless the lender has U.S. Bank delegation to approve condos. IHDA Mortgage does not approve condos or lenders' delegated status. For full condo submission guidelines please review the IHDA Mortgage Procedural Guide or U.S. Bank guidelines . Keywords: Project, Occupancy, Warrantable





File Shipping

How and where should we ship/upload the file once it has closed?


  1. Verify that all data in TPO Connect mirrors exactly how the loan closed (program, amounts, property address, etc.)
  2. Upload the investor delivery file to U.S. Bank via DocVelocity. Please contact U.S. Bank at hfadocvelocityassistance@usbank.com for questions regarding this process
  3. Upload IHDA documentation per the IHDA checklist as found in the document library. This will consist of two separate uploads, an investor delivery file (same file sent to US Bank) and IHDA delivery file.
  4. Ship the file accordingly:
RECORDED IHDA 2nd Mortgages: Illinois Housing Development Authority Attn: Homeownership Servicing 111 E Wacker Drive STE 1000 Chicago, IL 60601 **do not send IHDA any file documentation other than the original recorded 2nd mortgage** ORIGINAL COLLATERAL: U.S. Bank Home Mortgage Attn: Note Vault 5th Floor
9380 Excelsior Blvd.
Hopkins, MN 55343 Once all these steps have been completed, you can monitor file status in TPO Connect. Please note IHDA will email the contact on file with any conditions. Please be sure the email provided is accurate and monitored to avoid any delays.




What is the SRP paid on orginated files?


Lender will receive 2.0% of the mortgage amount as a Service Release Premium (SRP) Any loan locked with the Illinois Housing Development Authority (IHDA) and subsequently being purchased by IHDA, or any master servicer working on their behalf, shall be locked for 60 days with payment at the full Service Release Premium (SRP) as indicated in Addendum G of the IHDA Mortgage Products Origination Procedural Guide. Any loan that is set to be purchased after the initial 60-day lock period is still eligible for purchase at the same interest rate, but at a reduced SRP as indicated in Addendum G. If a loan has not been purchased by the 90th day, IHDA is under no obligation to purchase the loan(s).




Are any fees paid to IHDA Mortgage?


There are currently no fees paid to IHDA Mortgage (unless the loan includes an MCC, see the MCC section for details).




What fees does U.S. Bank charge?


Currently U.S. Bank charges a tax service fee to the lender in the amount of $80.00 for all reservations dated 4/30/2018 and after, as well as a funding fee of $400.00 both of which are deducted at time of purchase.




How do I extend a reservation?


IHDA Mortgage asks that you, the lender, send notification including borrower name and IHDA loan number to Mortgage@ihda.org, when a loan is set to exceed the initial 60-day lock period, to ensure the loan remains active in our system. If a loan has not been purchased by the 90th day, IHDA is under no obligation to purchase the loan(s).





MCC (Mortgage Credit Certficate)

With which programs can I use the MCC?


Eligibility:

  • Available only in conjunction with the IHDA Mortgage Access Programs.
  • Borrowers must be first-time homebuyers (or Exempt*).
  • Borrower must be below county MCC income limits. (The income limits on a loan taking a MCC are more restrictive than our general limits and are based on the number in the household.)
  • Property must be a qualified dwelling situated on less than 5 acres of land.
(*Exempt = a qualified veteran (borrower must be a veteran), or property is in a targeted area. Note that if only the spouse is a veteran, the spouse must also be a borrower/mortgagor and obligated on the Note.)




When do MCC documents need to be signed?


All MCC documents should be signed prior to close with the exception of the following documents, which must be signed on or after closing:

  • MCC 32 – Borrower Closing Affidavit
  • MCC 33 – Lender Closing Certification
  • MCC 35 – Final Recapture
Refer to the MCC Data Entry form (found in the document library) for the full list of required documentation.




Can I use the MCC to qualify the borrower?


IHDA does not have overlays on using an MCC as income to qualify the borrower. Please defer to the specific Agency guidelines for the loan type you are using, as requirements may differ between loan type.




When can my borrower expect to receive their MCC?


After the file is approved, the MCC is typically issued and emailed to the borrower within 30 days, less if there are no erroneous or missing document for which IHDA must condition. Please ensure you provide a legitimate email address to for the borrower to avoid any delays.




How much does the MCC cost?


The MCC is $350.00 (check made payable to the Illinois Housing Development Authority). The lender may charge a separate $150.00 fee to the borrower for processing.




Do we need separate approval from IHDA Mortgage to offer the MCC program?


No, any approved IHDA Mortgage lender may offer the MCC to their eligible borrowers.




Is there any additional reporting or requirements for lenders originating an MCC?


Yes, for each calendar year during which the lender originated loans with an MCC tax credit, lenders must file an annual report with IRS form 8329. IHDA will send a year-end report to each lender that originated MCCs that contains information to help complete this form.




Do MCC documents require notarization?


All MCC documents may be electronically signed. IHDA Mortgage documents that are electronically signed do not require notarization. If you choose to wet sign, please defer to the instructions on the document itself.




What is a MCC (Mortgage Credit Certificate)?


The MCC entitles the borrower to take a federal income tax credit. The tax credit is in the amount of 25% of their paid mortgage interest. The MCC is registered with the IRS, and is effective year after year (up to 30 years), as long as the homeowner resides in the home and continues to pay mortgage interest on the initial loan. In some cases the borrower can apply for a re-issuance of the MCC in the event of a refinance, to continue to take advantage of the MCC tax credit. Eligiblity:

  • Available only in conjunction with the IHDA Access Programs.
  • Borrowers must be first-time homebuyers (or Exempt*).
  • Borrower must be below county MCC income limits. (The income limits on a loan taking a MCC are more restrictive than our general limits and are based on the number in the household.)
  • Borrower must be below county MCC purchase price limits.
  • Property must be a qualified dwelling situated on less than 5 acres of land.
  • (*Exempt = a qualified veteran (borrower must be a veteran), or property is in a targeted area. Note that if only the spouse is a veteran, the spouse must also be a borrower/mortgagor and obligated on the Note.)
Fees:
  • $350.00 - Payable to Illinois Housing Development Authority
  • $150.00 - Optional fee that may be charged by the originating lender
  • (Both fees must appear on the CD for the 1st Mortgage)