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Home Buying Programs

With interest rates on the rise, it can feel like buying a home is out of reach.

But First Northern Credit Union has partnered with Fannie Mae, the Federal Home Loan Bank of Chicago, and the Illinois Housing Development Authority to offer solutions that may help.

Since 2014, First Northern has partnered with the Illinois Housing Development Authority (IHDA) to offer members specialized homebuyer programs.  These programs are ideal for members wishing to buy a home that need extra flexibility or who have limited funds for down payment and/or closing costs, yet have the financial means to maintain monthly mortgage payments.

Opening Doors

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 5-year forgiveness period.
  • Down Payment Assistance Amount: $6,000

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IHDAccess Forgiveable

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, forgiveable down payment assistance loan with no replayment unless sold or refinanced before the 10-year forgiveness period.
  • Down Payment Assistance Amount: 4% of Purchase Price (up to a max of $6,000.00)

Learn More

IHDAccess Deferred

  • Available to First-Time and Non First-Time Homebuyers
  • A no-monthly payment, deferred down payment assistance loan. Payment is due when you sell or refinance.
  • Down Payment Assistance Amount: 5% of Purchase Price (up to a max of $7,500.00)

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IHDAccess Repayable

  • Available to First-Time and Non First-Time Homebuyers
  • A zero-interest repayable down payment assistance loan. Monthly payment is required.
  • Down Payment Assistance Amount: 10% of Purchase Price (up to a max of $10,000)

Learn More

Unsure if you qualify for one of these programs?

Contact our mortgage team and let them know you're interested in an IHDA Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

DISCLAIMER: All program funding and availability is subject to change at any time, and is not guaranteed until the lender places a complete reservation with IHDA Mortgage. Potential borrowers must meet all applicable program guidelines and income/purchase price limits for the county the property is located in to be eligible. Detailed program guidelines and requirements can be found in the procedural guide posted in the IHDA Document Library. 

If you want to buy a home and have a steady income and good credit, First Northern Credit Union and the Federal Home Loan Bank of Chicago can help.

Downpayment Plus® is a program that provides down payment and closing cost assistance for income-eligible homebuyers. Through the Downpayment Plus Program*, up to $10,000 may be available to eligible homebuyers to use toward down payment and closing costs.

Homebuyers must meet income eligibility requirements and:

  • Contribute at least $1,000 to the purchase of the home
  • Complete pre-purchase homebuyer education and counseling
  • Live in the home as your primary residence

How does it work? 

  1. Contact our mortgage team: Downpayment Plus is offered by members of Federal Home Loan Bank of Chicago, including First Northern Credit Union. 
  2. Apply: We will collect applicable documentation and complete the Downpayment Plus application process on your behalf.
  3. Gain approval: We will work with the Federal Home Loan Bank of Chicago to review your application and eligibility. We can answer any questions you may have about the Downpayment Plus process, so you have a single, local point of contact—your Mortgage Loan Officer at First Northern.
  4. Prepare: After we have confirmed your Downpayment Plus grant reservation is in place, we will work with you to complete the required pre-purchase education and pre-purchase counseling.
  5. Purchase: Downpayment Plus funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if you meet eligibility requirements.  We can help you understand how Downpayment Plus will work with your specific home purchase and needs.
  6. Receive grant: The assistance is provided in the form of a forgivable grant paid on your behalf at the time that you close on mortgage financing with a participating Federal Home Loan Bank of Chicago member financial institution, including First Northern Credit Union. Grants are forgiven on a monthly basis over a five-year retention period.

Questions and want to know if you might qualify? 

Contact our mortgage team and let them know you're interested in our Downpayment Plus Program: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly. 

 

* Downpayment Plus is a program from the Federal Home Loan Bank of Chicago. Restrictions apply. Please see the Federal Home Loan Bank of Chicago’s website at www.fhlbc. com for complete requirements. “Downpayment Plus” is a registered trademark of the Federal Home Loan Bank of Chicago. 

Get into your new home and make lower monthly payments for the first 3 years with our 2-1-1 Temporary Interest Rate Buydown, in partnership with Fannie Mae. 

A 2-1-1 Temporary Interest Rate Buydown allows you to reduce your effective monthly payment for 3 years through a temporary buydown of the interest rate. Everyone is eligible to enroll for this program and enjoy this benefit! 

How does a 2-1-1 Temporary Interest Rate Buydown work?

  • In a 2-1-1 Temporary Interest Rate Buydown, the effective interest rate that you pay during the first 3 years of your mortgage is reduced as a result of the deposit of a lump sum of money (sometimes called a “subsidy”) into a buydown account at closing. The buydown funds may be provided by the borrower, lender, borrower’s employer, property seller, or other interested parties to the transaction. 
  • A portion of the subsidy is released each month during the first 3 years of your mortgage to reduce your payments.
  • At the end of the buydown period, the buydown funds collected at closing will have been exhausted, and the buydown period ends. See the example below for additional context.

2-1-1 Temporary Interest Rate Buydown Example

Year Interest Rate
1 4.00%
2 5.00%
3 5.00%
4-30 6.00%

Ready to learn more?

Contact our mortgage team and let them know you're interested in our 2-1-1 Buydown: call 888-328-8677, email us at mortgagegroup@fncu.org, or contact one of our Mortgage Loan Experts directly.