Illinois will offer $6,000.00 interest free loans that can be used as a downpayment by first time buyers.
Details of the program are here.
The $8000.00 tax credit given to first time buyers has been popular and has helped get first time buyers rolling. I did a closing the other day where my client/buyer had already filled out his 1040x (to amend his 2008 tax return) and had it ready to mail in from the closing. That’s thinking ahead. But, the $8000.00 tax credit comes 4-6 weeks after closing and can’t be used for the downpayment. The new Illinois loan program will provide downpayment advances for FHA loans (FHA requires 3.5% down).
Anything that props up the housing market for awhile is good by me.