Moving or Refinancing?

What you need to know.

Do I owe anything on my IHDA 2nd mortgage? If so, how do I find out how much?


You can order a payoff to get the exact balance owed or you can do some calculation on your own. For monthly amortizing IHDA 2nd mortgages, you can get a rough estimate of the amount owed by subtracting the monthly amount from the starting balance. Please note, some programs are forgiven after their term/forgiveness period. For exact amounts, please refer to the "How do I order a Payoff" question. The calculations below are for reference only and should not be used to confirm any debt owed: 1stHomeIllinois: $7,500 - (number of months since closing x $125) = Current balance Program Term Length: 60 months AtHomeIllinois: $5,000 - (number of months since closing x $41.67) = Current balance Program Term Length: 120 months Access Forgivable: Assistance amount - ((Assistance Amount ÷ 120) x number of months since closing) = Current Balance Program Term Length: 120 months Access Deferred: Full amount of assistance due upon refinance, sale of home, or maturity of 1st Mortgage. Program Term Length: 360 months Access Repayable: Assistance amount - ((Assistance Amount ÷ 120) x number of months since closing) = Current Balance Program Term Length: 120 months




Is my IHDA Mortgage loan subject to recapture tax? What is recapture tax?


Some IHDA Mortgage loans are subject to a Federal recapture tax. Subject to certain exceptions, if a homebuyer who has received a loan financed with proceeds of tax-exempt bonds sells the residence within nine (9) years of purchase this subsidy may be “recaptured”. The recapture is accomplished by an increase in your federal income tax for the year in which you sell your home. The recapture only applies, however if you sell your home at a gain and if your income increases above specified levels. The Authority will provide you with additional information reflecting the calculation of the recapture tax at closing or shortly after closing on the purchase of your residence. The Authority believes that very few, if any, individuals will ever become subject to this tax. To encourage you to finance your residence under Authority first-time homebuyer programs, the Authority agrees to reimburse you if you can provide to the Authority documentation showing that you paid the recapture tax. NOTE: Any such reimbursement shall be limited to the actual amount of tax due; in the event of overpayment, any amount paid in excess of the actual amount due will not be reimbursed. The IHDA Recapture Reimbursement Policy does not apply to borrowers utilizing an MCC; reimbursement policy applies to first mortgage only, not to MCC. Have your tax advisor review the recapture you signed at closing to assess any liability. IHDA does not give tax advice of any kind.




Can I keep my Mortgage Credit Certificate (MCC) if I refinance?


Yes, as long as you still reside in the home as your primary residence IHDA Mortgage will re-issue your Mortgage Credit Certificate. Click here for instructions on how to request a reissuance.




I'm refinancing, can I resubordinate (keep it open) my IHDA 2nd mortgage?


No, unfortunately IHDA Mortgage cannot subordinate lien position. If you payoff your 1st mortgage, the IHDA 2nd mortgage must also be closed out. Please note this does not apply to Illinois Hardest Hit Fund HELP recipients, who may subordinate on a qualifying refinance. You can download the request form here, submit the completed form to subrlse@ihda.org.




How do I order a Payoff?


Hardest Hit Fund Loans (includes $7,500 1stHomeIllinois Down Payment Assistance)

Email hhfsubpayoffrlse@ihda.org with the following:

1. Borrower name and property address 2. Expected closing date 3. Email address (to send payoff statement) 4. Authorization from borrower 5. Title commitment

All Other Down Payment Assistance Loans

Email LoanPayoff@ihda.org with the following:

1. Borrower name and property address 2. Expected closing date 3. Email address (to send payoff statement) 4. Authorization from borrower

First Mortgage Loans serviced by IHDA*

For borrowers who receive a monthly statement from IHDA:

*First mortgage refers to the larger, 30yr mortgage, not Down Payment Assistance. Borrowers who receive a monthly statement from U.S. Bank should contact customer service at 800-365-7772.




How do I order a Release?


If your IHDA mortgage has been fully paid off or forgiven, you can request a release by emailing subrlse@ihda.org. In your email request, please attach this completed Release Request Form.




How do I know which program I used and/or my closing date?


Find your copy of the closing paperwork, your lender should have emailed you a copy or the title company will have provided you a physical copy. You can find the program by looking at the document codes at the bottom right of the mortgage signed at closing:

  • FG= IHDAccess Forgiveable
  • RP= IHDAccess Repayable
  • DF= IHDAccess Deferred
  • 1stHome= 1stHomeIllinois
  • AtHome= AtHomeIllinois
Your closing date will also be reflected on this document next to your signature.





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