Category: State Programs | Published: September 11, 2025 | Reading Time: 12 minutes
Quick Summary: Illinois offers excellent first-time home buyer assistance through the SmartMove Program providing up to $6,000 in down payment assistance, competitive interest rates, and various tax benefits. This complete guide walks you through every step with a free printable checklist.
Free Illinois First-Time Buyer Checklist
Download our comprehensive printable checklist to track your progress through every step of the Illinois first-time home buyer process.
Administered by Illinois Housing Development Authority (IHDA) providing down payment and closing cost assistance.
Down payment assistance: Up to $6,000 for qualified buyers
Interest rate: Competitive fixed rates
Loan terms: 30-year fixed rate mortgages
Assistance structure: Forgivable loan over 10 years
SmartBuy Program
Competitive rates
Traditional fixed-rate mortgages with competitive interest rates for qualified first-time buyers.
Loan types: 30-year fixed rate
Down payment: As low as 3%
Credit score: Minimum 640
Available statewide: All Illinois counties
Access Program
Enhanced flexibility
Flexible underwriting program for borrowers with unique circumstances or credit challenges.
Down payment: As low as 3%
Credit score: Minimum 580
Special features: Alternative credit documentation
Income limits: Up to 120% of area median income
Step-by-Step Process for Illinois First-Time Buyers
1
Determine Your Eligibility
First-Time Buyer Definition:
Haven't owned a home in the past 3 years
Single parent who owned with former spouse only
Displaced homemaker
Individual who owned non-traditional property only
Income Limits (2025):
Cook County (Chicago): Up to $109,800 (1-person) / $157,000 (4-person)
DuPage County: Up to $119,700 (1-person) / $171,000 (4-person)
Kane County: Up to $119,700 (1-person) / $171,000 (4-person)
Other counties: Up to $87,360 (1-person) / $124,800 (4-person)
2
Complete Homebuyer Education
Required for all IHDA programs:
Choose HUD-approved counseling agency
Complete 8-hour homebuyer education course
Obtain certificate of completion
Course must be completed within 2 years of application
Tip: Many courses are available online and can be completed at your own pace. Budget 2-3 days to complete the full course.
3
Gather Required Documents
Income Documentation:
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years
Bank statements for past 2 months
Employment verification letter
Asset Documentation:
Savings account statements
Checking account statements
Investment account statements
Retirement account statements
Gift letter (if applicable)
4
Find IHDA-Approved Lender
Use IHDA's Lender Directory:
Visit IHDA.org lender directory
Search by your county or ZIP code
Contact multiple lenders for rate quotes
Verify lender offers SmartMove program
Important: Only IHDA-approved lenders can originate SmartMove loans. Working with non-approved lenders will disqualify you from the programs.
5
Apply for Pre-Approval
Submit Complete Application Package:
IHDA loan application
SmartMove Assistance application
All required documentation
Homebuyer education certificate
Pre-approval fee (varies by lender)
Timeline: Pre-approval typically takes 3-5 business days
6
Shop for Homes
Property Requirements:
Must be your primary residence
Single-family homes, condos, townhomes eligible
Property must meet IHDA inspection standards
Purchase price must not exceed county limits
2025 County Loan Limits:
Cook County: $766,550
DuPage County: $766,550
Kane County: $647,200
Lake County: $647,200
Will County: $647,200
7
Submit Purchase Contract
After Offer Acceptance:
Submit signed purchase contract to lender
Order home inspection and appraisal
Finalize loan application
Provide any additional documentation requested
Timeline: Standard 30-45 day escrow period
8
Complete Final Loan Processing
Underwriting Process:
Lender submits file to IHDA for approval
Final income and asset verification
Property appraisal review
Clear any final conditions
Timeline: 7-14 days for final approval
9
Close on Your Home
Closing Day Tasks:
Review all closing documents
Sign loan documents and deed
Receive keys to your new home
SmartMove assistance funds applied at closing
Pro Tip: Bring a cashier's check for any down payment amount not covered by assistance programs. Personal checks are typically not accepted at closing.
Printable Illinois First-Time Buyer Checklist
Illinois First-Time Home Buyer Checklist
Pre-Application Preparation
Verify first-time buyer eligibility (no home ownership in past 3 years)
Check income limits for your county
Complete HUD-approved homebuyer education course
Obtain homebuyer education certificate
Document Collection
Pay stubs for past 30 days
W-2 forms for past 2 years
Tax returns for past 2 years (complete with schedules)
Bank statements for past 2 months (all accounts)
Employment verification letter
Social Security card and driver's license
Investment/retirement account statements
Gift letter and gift funds documentation (if applicable)
Lender Selection & Pre-Approval
Research IHDA-approved lenders in your area
Contact multiple lenders for rate quotes
Submit complete loan application
Apply for SmartMove Assistance Program
Receive pre-approval letter
Home Shopping & Purchase
Find qualified real estate agent
Verify properties meet IHDA requirements
Confirm purchase price within county limits
Submit purchase offer and negotiate terms
Order home inspection
Review inspection report and negotiate repairs
Loan Processing & Closing
Submit signed purchase contract to lender
Complete loan application and provide additional docs
Review appraisal report
Clear all underwriting conditions
Schedule final walk-through
Review closing disclosure
Prepare cashier's check for closing costs
Attend closing and sign documents
Post-Closing
Set up homeowner's insurance
Transfer utilities to your name
Register for SmartMove loan servicing account
Keep all loan documents for tax purposes
Illinois Tax Benefits for First-Time Buyers
Mortgage Credit Certificate (MCC) Program
Annual Tax Credit: Receive up to 25% of your mortgage interest as a federal tax credit each year, with a maximum of $2,000 annually. Illinois offers one of the higher MCC percentages in the nation.
Important Illinois Contacts
Illinois Housing Development Authority (IHDA)
Phone: (312) 836-5200
Website: IHDA.org
Hours: Monday-Friday, 8:30 AM - 5:00 PM CST
❓ Frequently Asked Questions
How long does the SmartMove loan process take?
From application to closing typically takes 30-45 days, similar to conventional loans. Allow extra time for homebuyer education completion if not already done.
Ready to Calculate Your Illinois Mortgage?
Use our advanced mortgage calculator to estimate your monthly payments with current Illinois interest rates and down payment assistance.
Illinois's first-time home buyer programs provide excellent assistance to help you achieve homeownership. The SmartMove Program can provide up to $6,000 in down payment assistance, while offering competitive rates and flexible terms.
Success with these programs requires careful preparation, especially completing homebuyer education early and working with IHDA-approved lenders. Use the printable checklist above to stay organized throughout your home buying journey.
Remember that program requirements and benefits can change, so always verify current details with IHDA or your approved lender before making decisions.
Need help with your mortgage calculations?
Our mortgage calculator includes Illinois-specific features to help you plan your home purchase with state assistance programs.