First-Time Homebuyer Program

Making more housing choices available is a part of wider economic development strategy of the Village of Skokie. The Village, in conjunction with the Illinois Housing Development Authority (IHDA), is pleased to partake in a program to benefit low and moderate-income first-time homebuyers. The program is operated by IHDA and is designed to make purchasing a home in Skokie more affordable through special financial incentives. The program offers the following three alternatives to address the individual needs of first-time homebuyers:

  1. Home Equity Loan Program (HELP): This program provides a qualified homebuyer with a grant of 4.25% of the purchase price. Specifically, 3% of the home's purchase price can be applied to reduce the amount of the down payment to be provided by the buyer, and 1.25% can be used to reduce the mortgage loan origination fees.
  2. IHDA Mortgage Program: This provides 30-year fixed-rate financing at below market interest rates.  Several area lenders offer these mortgages to qualified buyers.
  3. I-Loan Credit Certificate program: This option provides for a dollar for dollar tax credit on the buyer's income tax return of 25% of the annual interest paid on the life of the mortgage. This also results in greater mortgage capacity since the homebuyer effectively has more income after the tax credit to put toward the purchase price.

All of these IHDA programs have strict restrictions as to income limits and maximum purchase prices. The income limits for first-time buyers in Skokie are $72,400 for a household of 1 or 2 persons, or $83,260 for a household of 3 or more persons. The maximum purchase price is $325,890 for an existing single unit residence or new construction of a single unit home. Buildings of 2, 3, or 4 units can also be purchased with maximum prices of $367,060, $445,960, and $514,570, respectively. Homebuyers must reside in the buildings.

Contact: Skokie residents who are interested in these programs can contact Tom Thompson, the Village's Economic Development Coordinator, at 847/933-8446 for more information and to discuss eligibility. Application information can be received by calling the IHDA Help line at 1/800-942-8439.