Village of Morton Grove, IL - First in Service... First in Safety

Village of Morton Grove
RESIDENTIAL INFORMATION
Financial Assistance for Home Repair and First-Time Buyers

The Village of Morton Grove participates with other agencies to provide access to funds to increase the affordability of home ownership. There are multiple programs available to residents who need assistance to make home repairs or to purchase their first home. These programs are summarized below.

Home Repair Program

Up to $25,000 is available to fund essential repairs to your home. Typical repairs include: roofing, doors, windows, weatherization, electrical, plumbing and heating. Cosmetic updates such as kitchen and bath remodeling are not eligible for this program.

An interest free loan is taken out on behalf of the homeowner with the property serving as collateral. There are no monthly payments required and there is 0% interest. The loan does not have to be repaid until you move or sell the home.

In order to be eligible, you must live in the home as your primary residence and be income-qualified. In 2009, the following household income limits are in effect:

Maximum Household Income (based on number of people in the household)

1 person

2 people

3 people

4 people

5 people

6 people

7 people

8+ people

$41,700

$47,700

$53,650

$59,600

$64,350

$69,150

$73,900

$78,650

This program is particularly useful to families who already own their homes but have limited funds available to make repairs to the home. This program is funded using grants from Cook County and HUD.

To apply, contact the North West Housing Partnership (847) 969-0561 or download a pre-application form here.

I-Loan Mortgage (MRB) Program

This program provides first-time home buyers access to 30-year fixed-rate mortgage with interest rates approximately ½ percent below market rates. Borrowers must be first-time buyers, who qualify with the income and purchase price restrictions. As of April 2007, the following income and price limitations are effective:

Maximum Household Income

(based on number of people in the household)

Maximum Purchase Price

 

Single-family, townhouse, or condominium

2-unit building

3-unit building

1 or 2 persons

3 or more persons

 

$72,400

$83,260

$325,890

$367,060

$445,960

 

The mortgage is taken out through any eligible lender (bank, savings & loan, or credit union) that is properly qualified and licensed. Loans are reserved with IHDA, and an interest rate is “locked” at the time of reservation. The rate can usually be held for 6-9 months. In some cases, there can be options for assistance with closing costs.

Click below to learn more about this program from the IHDA website.

http://www.ihda.org/ViewPage.aspx?PageID=26

I-Loan Certificate (MCC) Program

This program provides eligible Morton Grove residents with a tax credit that can be deducted from your annual federal income taxes. The Mortgage Credit Certificate (MCC) program allows first-time homebuyers to receive a dollar-for-dollar reduction in federal income taxes of 25 percent of their mortgage interest up to $2,000 each year. This tax credit is in addition to the standard income tax deduction available when purchasing a home.

This program is usually announced in early summer. Borrower’s must be first-time buyers who qualify with the income and purchase price limitations. As of April 2007, the following income and price limitations are effective:

Maximum Household Income

(based on number of people in the household)

Maximum Purchase Price

 

Single-family, townhouse, or condominium

2-unit building

3-unit building

1 or 2 persons

3 or more persons

 

$72,400

$83,260

$325,890

$367,060

$445,960

 

The mortgage is taken out through any eligible lender (bank, savings & loan, or credit union) that is properly qualified and licensed. Loans are reserved with IHDA, and an interest rate is “locked” at the time of reservation. The rate can usually be held for 6-9 months. In some cases, there can be options for assistance with closing costs.

 Click below to learn more about this program from the IHDA website.

http://www.ihda.org/ViewPage.aspx?PageID=27

Contact the Village’s Department of Community and Economic Development at (847) 470-5231 to learn more about any of these programs.

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