Illinois down payment assistance in 2026: the four IHDA loans, and which one fits a McHenry County buyer
The Illinois Housing Development Authority runs four down-payment programs, and most buyers only hear about one of them. Here is the whole menu with the 2026 numbers, and the way we pick between them for buyers in Crystal Lake, Woodstock, McHenry, and Lake in the Hills.
Home State Bank mortgage teamCrystal Lake, IL · Appleton, WI · NMLS 478452Updated September 9, 20267-minute readThe four IHDAccess programs side by side
Every IHDA program is a 30-year fixed first mortgage from an IHDA-approved lender, with a second loan that covers down payment and closing costs. The four differ in how much they give and whether you pay it back.
| Program | Assistance | How it's repaid | Who's eligible |
|---|---|---|---|
| IHDAccess Home (new for 2026) | 6% of price, up to $15,000 | 0% interest, deferred until sale, refinance, or payoff | First-time buyers (veterans and targeted-area buyers exempt) |
| IHDAccess Forgivable | 4% of price, up to $6,000 | Forgiven monthly over 10 years | First-time and repeat buyers |
| IHDAccess Deferred | 5% of price, up to $7,500 | 0% interest, deferred until sale, refinance, or payoff | First-time and repeat buyers |
| IHDAccess Repayable | 10% of price, up to $10,000 | 0% interest, repaid monthly over 10 years | First-time and repeat buyers |
Which one we usually recommend
For a first-time buyer, IHDAccess Home is the biggest number and it doesn't touch the monthly payment, so it wins most of the time. If you have owned before, Forgivable is the closest thing to free money in Illinois: $6,000 that simply disappears if you stay ten years. Deferred and Repayable are for buyers who need a specific amount, need it on a property that fits one program's rules better, or expect to move within a few years and would rather not carry a forgivable balance.
The one thing all four share: the money has to be paid back or forgiven according to its rules if you sell or refinance early. We walk through that math before you sign, because a refinance in year three can turn a forgivable loan into a check at closing.
The basics you have to meet
IHDA keeps the qualifying rules simple and consistent across the programs:
- Minimum 640 credit score
- Your own contribution of 1% of the price or $1,000, whichever is greater
- Household income and purchase price within the McHenry County limits (your lender calculates these; they are not the same as your gross pay)
- The home is your primary residence
- Homebuyer education, which is a short online course
Stacking it on the right first mortgage
IHDA assistance rides on top of an FHA or conventional first mortgage. The choice matters more than the assistance amount. FHA allows lower scores and higher debt ratios but carries mortgage insurance for the life of the loan; conventional needs a stronger file but the PMI drops off at 20% equity. On a $330,000 house in Crystal Lake, the difference in PMI alone can be $100 a month.
McHenry County adds a wrinkle: property taxes. Our payment calculator defaults to a local rate of about 2.4% of value for this reason, because the tax line can be $650 a month on that same house, and IHDA's income limit math has to fit around it.
What IHDA can't do, and where a portfolio lender picks up
IHDA can't help a buyer with a 620 score, a self-employed borrower with 18 months of history, or a house with acreage the appraiser can't find comps for. Those are the files Home State Bank keeps on its own books. Sometimes the right answer is IHDA on an FHA loan; sometimes it is our Community Bank LTV program with no assistance at all and a lower total payment. We show both.
Questions people ask
- Is IHDA only for first-time buyers?
- No. IHDAccess Forgivable, Deferred, and Repayable are open to repeat buyers. Only the new IHDAccess Home program requires first-time status, with exceptions for veterans and targeted-area purchases.
- What is the income limit for McHenry County?
- It changes annually and depends on household size and the county. Your loan officer calculates it from IHDA's current table when you apply; it is the first thing we check.
- Can I combine IHDA with a seller credit?
- Yes. Seller-paid closing costs within program limits stack with IHDA assistance, which is often how a buyer gets to closing with only the 1% minimum contribution.
- What happened to Opening Doors?
- It is no longer listed among IHDA's current programs. If you saw it referenced elsewhere, treat it as discontinued and ask about IHDAccess Home instead.
This article is general information, not financial, tax, or legal advice, and not a commitment to lend. Program terms, limits, and rates change; confirm current figures with a loan officer. Home State Bank, N.A. NMLS 478452. Member FDIC · Equal Housing Lender.
