Affordable Homeownership
In 2024 and 2025, first-time homebuyers faced one of the most challenging housing markets in recent history as skyrocketing home prices, historically low inventory, and elevated interest rates combined to keep many buyers on the sidelines.[i] As prices grew, so did the sums needed for a down payment, and first-time buyers accounted for just 21% of home purchases across the country – an all-time low. The most frequently cited reason among renters for postponing a home purchase was the inability to afford a down payment, a challenge largely fueled by rising rents, credit card debt, and student loans.[ii],[iii],[iv]
During this period, IHDA Mortgage programs played a critical role in expanding access to homeownership in Illinois, ensuring buyers were not navigating this journey alone. Over the past two years, IHDA financed more than $1.9 billion in mortgage loans and provided $92.1 million in down payment assistance to make homeownership possible for 10,140 households across 97 of Illinois’ 102 counties, 88% of whom purchased their first home. We estimate that 15% – roughly one out of every seven first-time homebuyers in the state – purchased their home with an IHDA mortgage over the past two years.
To address the diverse needs of homebuyers across Illinois, IHDA offered five programs that provided varying levels of assistance or incentives designed to address many of the common barriers first-time homebuyers face. Across IHDA’s Access Mortgage programs, homebuyers could select up to $10,000 as a forgivable, repayable, or deferred down payment assistance loan depending on their specific financial situation or level of need. To promote mortgage lending in rural communities and areas of the state that are typically more affordable, the Access Plus initiative, originally introduced in 2022, was expanded to offer a flat service release premium as an incentive to lenders who made mortgage loans of $60,000 or less. And among IHDA’s most innovative efforts during this period, we re-launched the SmartBuy program which provides $5,000 in down payment assistance coupled with up to $40,000 in student debt relief. In less than three months, the program had wiped out nearly $16 million in student loan debt for 546 new homebuyers, removing a significant roadblock to long-term financial security.
In addition to financial assistance, IHDA’s approach emphasizes preparation and sustainability. All borrowers using IHDA Mortgage products complete pre-purchase homebuyer education to equip them with knowledge about the mortgage process, the ongoing financial responsibilities of homeownership, and more so they can make informed decisions about their future. IHDA also awarded $6 million in grant funding to 30 housing counseling agencies via the Housing Counseling Resource Program (HCRP) to expand access to financial education and pre-purchase counseling, particularly in historically underserved communities. Since it launched in 2022, more than 37,000 Illinois households have received free counseling under the HCRP, including more than 3,500 clients who went on to purchase their first home.
As a result of this holistic approach that combines affordable mortgage financing, down payment assistance, student debt relief, and homebuyer education, IHDA Mortgage programs are outpacing the broader mortgage market in service to first-time buyers, women-led households, and households of color. By removing the key obstacles that many homebuyers face, we see families able to build equity and start their journey towards a more secure financial future. More importantly, with barriers to homeownership behind them, they are able to begin the next chapter in their lives and create the future they had envisioned for themselves.
[i] Illinois Association of Realtors: 2025 Annual Report
[ii] National Association of Realtors: 2025 Profile of Home Buyers and Sellers
[iii] Federal Reserve: Report on the Economic Well-Being of U.S. Households in 2024 – May 2025
[iv] National Association of Realtors: 2025 Home Buyers and Sellers Generational Trends Report
Katie Hart, Chicago
When Katie Hart graduated with master’s degree in architecture in 2009, the economy was in crisis. Jobs were scarce, and the position she found at a Chicago architecture firm paid just enough to cover groceries and rent for her studio apartment. And like many new college graduates, she carried a significant burden that would impact her decisions and opportunities for the next ten years – over $100,000 in student loan debt.
As an architect, the Missouri native spent her days designing places and spaces meant to improve people’s quality of life, including major renovation projects that will modernize one of the Chicago Transit Authority’s busiest train stations. Yet the idea of having a place of her own felt impossible. Every extra dollar went toward her loans, and the dream of homeownership seemed out of reach.
“The SmartBuy program made it possible for me to finally buy a home… This is literally a life-changing moment for me.”
Everything changed when Katie’s parents spotted an article in the local newspaper about IHDA’s SmartBuy program. Encouraged, she immediately connected with a loan officer and began the application process. Soon, she received the life-changing news that she qualified for the program’s full $40,000 student debt benefit that would eliminate the remainder of her loan balance. Along with the financial support, the program’s homebuyer education courses helped her understand every step of purchasing a home, including the roles and responsibilities of her mortgage team.
Today, Katie is a homeowner in Chicago’s north side with options for the future that she had previously thought were impossible. She finally has space for both her personal and professional projects, a new adopted cat, and a place to put down roots. Homeownership did not just change her finances, she says. It also deepened her connection to her neighborhood, opened doors to new opportunities, and reshaped what she believes is possible for her future.