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Modular Homes – Mortgage Grants
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BNAH
The Chicago Grant Program BNAH
The Building Neighborhoods and Affordable Homes Program (BNAH) provides grants to qualifying
buyers to assist in their purchase of primary, owner-occupied residences that are newly constructed
single-family residential buildings, containing no more than four dwelling units, built pursuant to a
City of Chicago Land Sale Redevelopment Agreement or a City Lots for Working Families Agreement.
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Maximum Loan Amount:
Max. Grant Amount:
$100,000
provides up to $100,000 in purchase price assistance to qualifying buyers.
Web Site:
Forms:
Area:
Full Application:
Required D0cuments:
Cook County Modular Home Program
Cook County Grant Programs
The Cook County Modular Homes Program is a pilot effort leading construction of single-family homes
in three underinvested communities with limited new home construction:
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Humboldt Park (Chicago)
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Chicago Heights
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Proviso Township
Eligibility
Those earning up to 120 percent of the county’s median income are eligible, and in
Disproportionately Impacted Areas and Qualified Census Tracts, there is no income limit.
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The Program:
County Financial Help:
Property for Sale:
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Chicago Homegrown Grant Program
Chicago Homegrown Purchase Assistance Program
What is the Home Grown Purchase Assistance Grant Program?
The HomeGrown Grant is a financial assistance program funded by the City of Chicago Department
of Housing (DOH) to help eligible homebuyers purchase homes in the City of Chicago by providing
financial assistance for:
1. Down Payment
2. Closing Costs
Who is eligible?
1. Applicants must meet all of the following criteria:
2. Household Income: Household gross income must be within program limits.
3. Location: Purchase a home located in the City of Chicago.
4. Primary Residence: The home must be used as the applicant’s primary residence.
Chicago Homegrown Grant Program
Home – Cook County Land Bank Authority
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Financial Assistance for First-Time Homebuyers in Illinois
City of Rockford First-Time Homebuyer Purchase Assistance Program
Rockford First-Time Homebuyer Purchase Assistance Program assists low-to-moderate income
families purchasing existing or newly constructed homes in the city limits of Rockford with down
payment and closing cost assistance loans up to $14,999 of the home’s purchase price.
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Assistance comes in the form of a zero-interest deferred forgivable loan and is conditioned on
living and remaining in the home for up to five (5) years. If this condition is not met, the buyer
may be required to repay the city a portion of the original loan amount. If you sell, transfer,
lease, rent, abandon, or cease to occupy the property as your principal residence during this
period, you may be required to repay the assistance provided.
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Eligibility & Income Requirements
Applicants must be first-time homebuyers, and all qualifying household annual income must
be at or below 80% of the area median income depending on household size. These income
limits are posted on their website which are subject to annual changes.
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Priority and highest dollar amounts are given to applicant households meeting this threshold in
the following order: extremely low, very low, low-income, and moderate-income.
1. Homebuyers must contribute a minimum of 1% of the sales price from their own funds.
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Credit and Underwriting
Applicants usually must meet the credit and debt-to-income requirements for approved primary
lenders offering conventional, FHA, or VA loans. This program does not mention information
pertaining to minimum credit scores. Approval for a mortgage for similar programs typically
requires a minimum credit score of 620 to 640.
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The Debt to Income Ratio
The debt to Income ratio requirements for these loans or comparable programs require a
30% front-end ratio and a maximum 41% back-end ratio. The front-end ratio is calculated
by adding the new monthly mortgage payment plus taxes and insurance and dividing the
sum by the borrower’s monthly gross income. The back-end ratio is calculated by adding
together the mortgage payment and all a borrower’s monthly debt payments and dividing
the sum by the borrower’s monthly gross income.
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Home Maximum Sales Price
The maximum allowable purchase price for an existing home is $131,000.
This entire summary is based on the most current program guidelines available and may
be subject to future updates. To see if you qualify, speak with your loan officer or visit their
website for more information.
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Down payment assistance programs and/or grants were researched by the team at FHA.com.
Please note that all programs listed on this website may involve a second mortgage with
payments that are forgiven, deferred, or subsidized in some manner until resale of the
mortgaged property.
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FHA.com’s compilation is not a complete list, but it can serve as a starting point in your search
for the down payment assistance program or grant for your situation. It is up to the consumer
to contact these entities and find out the specifics of each program.
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Note:
Aurora First-Time Homebuyer Program
The City of Aurora First-Time Homebuyers Program assists low to moderate income families purchasing
existing or newly constructed homes in the city limits of Aurora, Illinois with down payment and closing
cost assistance loans up to $5,000.
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Assistance comes in the form of a zero percent (0%) interest deferred forgivable loan note which is
conditioned on living and remaining in the home for up to three (3) years.
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If this condition is not met, the buyer may be required to repay the city a portion of the original loan
amount. If you sell, transfer, lease, rent, abandon, or cease to occupy the property as your principal
residence during this period, you may be required to repay the assistance provided.
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Eligibility & Income Requirements
Applicant(s) must be first-time homebuyers, and all qualifying household annual income must be at
or below 80% of the area median income depending on household size. These income limits are posted on
their website which are subject to annual changes. Priority and highest dollar amounts are given to
applicant households meeting this threshold in the following order: extremely low, very-low, low-income
and moderate-income.
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Credit and Underwriting
Homebuyer must secure a 30-year, fixed rate mortgage from a lender of their choice. Credit and debt-to-
income requirements for lenders offering conventional, FHA, or VA loans must be met. Specific credit
score requirements were not detailed in the available information. Approval for a mortgage for similar
programs typically requires a minimum credit score of 620 to 640.
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The debt-to-income ratio requirements for these loans or comparable programs require a 28% front-end
ratio and a maximum 36% – 43% back-end ratio. The front-end ratio is calculated by adding the new
monthly mortgage payment plus taxes and insurance and dividing the sum by the borrower’s monthly
gross income.
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The back-end ratio is calculated by adding together the mortgage payment and all a borrower’s monthly
debt payments and dividing the sum by the borrower’s monthly gross income.
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Home Maximum Sales Price
The maximum sales price for a home cannot exceed the current 95% of the area median purchase priceand are updated annually. To see if you qualify, speak with your loan officer or visit their website for more
information.
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Note: All information mentioned above was accurate at the time of publication and may no longer be
current visit the program website for updated information.
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Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note
that all programs listed on this website may involve a second mortgage with payments that are forgiven,
deferred, or subsidized in some manner until resale of the mortgaged property.
.
FHA.com’s compilation is not a complete list, but it can serve as a starting point in your search for the
down payment assistance program or grant for your situation. It is up to the consumer to contact these
entities and find out the specifics of each program.
Decatur First-Time Homebuyer Purchase Assistance Program
Kankakee First-Time Homebuyer Purchase Assistance Program
Sringfield First-Time Homebuyer Purchase Assistance Program
Illinois Housing Program
Peoria First-Time Homebuyer Purchase Assistance Program
Federal Housing Grants
TO DO Chicago Block Grant Programs
Click Here
The Neighborhood Opportunity Fund (NOF) provides capital development grants up to $250,000
for small business and cultural projects located along West, Southwest, and South Side commercial
corridors. NOF grants are provided as reimbursement for up to 75% of eligible project expenses
with a maximum grant of $250,000. Applicants may qualify for additional funding for technical
assistance if they use a DPD-approved project management or architect service provider..
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Funds are sourced from fees paid by downtown construction projects through the Department
of Planning and Development’s Neighborhood Opportunity Bonus program.
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Grants in excess of $300,000 are available through DPD’s Community Development Grant (CDG)
program. For information on grants between $300,001 and $5 million, visit the CDG-Medium page.
For information on grants exceeding $5 million, visit the CDG-Large page.
Block Grant Programs
HUD administers block grant programs, which provide flexible resources that help fund affordable
rental and homeownership activities as well as economic development and neighborhood revitalization.
HUD uses a formula to allocate funds for each program to large cities and urban counties, as well as to
states, which can distribute the federal grant funds to jurisdictions that do not receive money directly. To
be eligible for these and other grant programs, jurisdictions are required to submit a “Consolidated
Plan” that details the local housing needs of low- and moderate-income residents, as well as proposed
strategies and local resources that may be brought to bear to meet those needs.
Home Grant Programs
The HOME Investment Partnerships Program, commonly referred to as HOME, is a federal block grant
program administered by HUD that distributes approximately $1 billion each year to states and
participating localities. In 2010, HOME received $2 billion in funding, the highest amount ever received
by the program. Since then, the program’s funding has been cut by 50 percent. HOME funds may only be
used for activities that provide affordable housing for low-income households. While HOME funds are
limited to affordable housing activities, the range of eligible uses that meet this requirement includes a
variety of strategies.
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HOME funds flow directly from HUD to larger cities and counties and to states. Smaller localities are
eligible to receive HOME funds indirectly by applying to their state. The program comes with a
matching requirement under which communities receiving HOME funds must match every dollar of
HOME funds with 25 cents of local resources. This matching requirement may be met either with cash
or in-kind contributions.
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How can HOME funds be used?
The eligible uses of HOME funds encompass a broad range of activities, including but not limited to:
1. Home purchase or rehabilitation financing assistance.
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2. Construction or rehabilitation of housing for rent or ownership and related expenses, including
site acquisition, demolition of dilapidated homes to make way for a HOME-assisted development
and relocation assistance.
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3. Tenant-based rental assistance (assistance expires after two years, unless renewed).
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4. Program planning and administration.
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In all cases, affordability of a home must be maintained for at least 20 years for new construction and
5 to 15 years for acquisition and/or rehabilitation, depending on the award amount.
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While the possible applications of funds are numerous, limits apply to the incomes of families receiving
assistance. In general, rental projects that receive HOME funds must benefit households with incomes
below 60 percent of the area median income (AMI), while assistance related to homeownership must be
used for households with incomes below 80 percent of AMI. Additional income restrictions apply
depending on specific project details. This is a general summary of complex income eligibility and
targeting rules.
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Who administers the HOME program?
The HOME program was authorized by Congress in 1990 under Title II of the Cranston-Gonzalez
National Affordable Housing Act, and is administered by HUD’s Office of Community Planning and
Development. Local eligibility for direct assistance as a participating jurisdiction (PJ) is determined
by a formula that incorporates measures of poverty and housing conditions.
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Overall, 60 percent of funds go directly to localities, and 40 percent of HOME dollars go to states. A
formula is used to determine individual allocations to PJs and states, with certain minimums. (States
receive a minimum of $3 million annually, while local PJs are normally guaranteed at least $500,000 per
year.) In addition, 15 percent of a PJ’s funds must be used for homes that are developed, sponsored or
owned by a nonprofit designated as a “community-based housing development organization.”
Community Development Block Grant (CDBG)
The Community Development Block Grant (CDBG) program provides annual grants on a formula basis
to be used for a wide range of community development activities directed toward neighborhood
revitalization, economic development, affordable housing and improved community facilities and
services. Local and state governments choose how to deploy CDBG funds based on their communities’
needs. According to HUD, in fiscal year 2014, CDBG was used to help meet the housing needs of more
than 85,800 households nationwide through initiatives offering home rehabilitation assistance and
other housing programs.
Housing Opportunities for People with AIDS (HOPWA) grants
Like CDBG, Housing Opportunities for People with AIDS (HOPWA) is not strictly a housing program.
Funds may be used for health care, case management and other supportive services for people with
HIV/AIDS, in addition to covering the costs associated with the acquisition and rehabilitation or
development of housing. Funds may also be used to provide rental assistance and, on a short- term basis,
prevent homelessness among individuals diagnosed with HIV or AIDS. HOPWA also sets aside a limited
amount of funding to be awarded on a competitive basis to jurisdictions in addition to the formula
allocations.
National Housing Trust Fund
The National Housing Trust Fund (NHTF) was authorized by Congress in 2008, and is intended to
provide a dedicated source of funding for the preservation and production of new homes for extremely
low-income families. (Ten percent of funds may be used for activities that support first-time
homebuyers, including down payment and closing cost assistance.) The NHTF was initially slated to be
funded with a share of Freddie Mac and Fannie Mae’s new business; in 2015, the Federal Housing
Finance Agency decided to begin funding NHTF, and states will receive funds for the first time in 2016.
While the goal is for NHTF to provide $1 billion in annual affordable housing funding, these first initial
years are expected to be smaller allocations, with $174 million allocated for fiscal year 2016.
Capital Magnet Fund
The Capital Magnet Fund was authorized by Congress in 2008. The Department of Treasury, through
the Community Development Financial Institutions (CDFI) Fund, administers the program, providing
competitively awarded grants to CDFIs and qualified nonprofit housing organizations. The Capital
Magnet Fund can support affordable housing, economic development and community service facilities.
Awardees are required to produce housing and community development investments at least 10 times
the size of the award amount. The program was initially slated to be funded with a share of Freddie Mac
and Fannie Mae’s new business and received a direct appropriation of $80 million from Congress in
2010. In 2016, the Federal Housing Finance Agency decided to begin funding the National Housing Trust
Fund and the Capital Magnet Fund.
Neighborhood Stabilization Program
To help states and localities stabilize neighborhoods impacted by the foreclosure crisis of 2007-2010,
Congress funded the Neighborhood Stabilization Program (NSP). The initial round of NSP funding,
known as NSP1, was authorized by the Housing and Economic Recovery Act (HERA) of 2008. NSP1
provided $3.92 billion in grants to states and selected localities based on a formula that allocated more
funding to communities that had been greatly impacted by foreclosures. Eligible activities included:
* Establishment of financing mechanisms to facilitate the purchase and redevelopment of foreclosed
homes.
* Direct purchase and rehabilitation of abandoned and foreclosed homes for resale, rent or
redevelopment.
* Establishment of land banks for foreclosed homes; and
* Demolition of blighted structures.
In 2009, the American Recovery and Reinvestment Act (ARRA) established two additional rounds of
NSP funding, known as NSP2 and NSP-TA. NSP2 provided $1.93 billion in competitive grants to states,
localities and nonprofit organizations, while NSP-TA provided $50 million on a competitive basis to
organizations that provide technical assistance to NSP grantees. Congress funded a third round of NSP
in 2010 as part of the Dodd-Frank Wall Street Reform Act. Both NSP-1 and NSP-3 were by formula
allocation. The program has not received additional funding since 2010, although some grantees
continue activities by recycling program income on a limited scale.
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Additional resources on HUD programs:
The National Low Income Housing Coalition’s Advocates’ Guide includes a thorough description of HUD
programs and acts as a resource for advocating in support of these programs.
Next SectionFederal Rural Housing Programs