Home ownership is a dream for most Americans. The State Sponsored Homebuyer Assistance Program is offered through various government agencies. After all, regardless of their income level Americans strive to become homebuyers and purchase a home. That’s why HOME offers down payment, closing cost and rehabilitation assistance to low-income homebuyers who make the purchased home their principal residence and rehabilitate it according to IHDA and HUD standards.
Before buying Main Line real estate and to receive HOME assistance, prospective homebuyers must take part in homeownership counseling to ensure they understand budgeting and personal financial management, home maintenance, the mortgage loan process, legal documents and obligations associated with buying a home, and work-out options they have with mortgage lenders in case financial problems arise.
Local governments, non-profit organizations and Community Housing Development Organizations (CHDO) — offer state sponsored homebuyer assistance programs. More information about CHDO’s assistance program is in the Community Housing Development Organizations section. For-profit groups are not eligible. Homeowners should apply for HOME assistance through sponsoring agencies funded by IHDA, not directly through the Authority or via the Single Family Program Department.
You can search for Main Line real estate properties that are selected by sponsoring agencies. Homebuyers may choose from one-unit properties, condominiums or manufactured housing (mobile homes are ineligible). They may be valued at no more than HUD’s area limits, and in the case of acquisition and rehabilitation, must be free from any health or safety defect before occupancy.
Assistance to homebuyers is provided in the form of deferred, forgivable loans at 0 percent interest. The use of HOME funds carries certain restrictions on the use of the purchased property, as well as upon any proceeds realized from the sale of the home if the sale occurs with?in certain time frames. If the homeowner moves out or sells the home before this time period has expired, all or a portion of the HOME funds must be repaid by the homeowner.
For more information about state sponsored homebuyer assistance programs contact HOME at (312) 836-5200.