Governor Quinn Announces Illinois Homebuyers Access Record $1.2 Billion in Affordable Mortgage Loans in 2014

ROCKFORD - Governor Pat Quinn today announced more than 10,000 first-time homebuyers across the state have accessed more than $1.2 billion in loans and down payment assistance through the Illinois Housing Development Authority's (IHDA) affordable mortgage programs. The Governor's Welcome Home Illinois program accounted for 85 percent of the loans reserved and fueled the most productive summer in IHDA's 30 years of mortgage lending. Today's announcement is part of Governor Quinn's agenda to drive economic growth by making homeownership possible for first-time buyers in Illinois.

"Welcome Home Illinois is leading the way for first-time homebuyers, supporting thousands of families with over a billion dollars in assistance," Governor Quinn said. "An investment in homeownership is an investment in the future of our state. By giving hardworking people the opportunity to buy their first home, we are stabilizing communities across Illinois and driving our economy forward."

The Welcome Home Illinois program has attracted young home buyers in record numbers at a time when most states are still struggling to bring these buyers back to the market.

In just seven months, 8,500 first-time buyers in 94 of the state's 102 counties have reserved $1.2 billion in financing, potentially creating 4,250 jobs and infusing $200 million into Illinois' economy.

Based on composite scores produced by Freddie Mac, Illinois has the most improved housing market from June to July, second only to Nevada, and the Chicago Metro market ranks 5th in the nation as the most improved metro area. A stronger housing market is critical to our economic recovery, and first-time home buyers are the foundation that supports a competitive home buying market, historically accounting for 40 percent of home sales nationally.

With generous assistance for a down payment, a minimum credit score requirement of 640 and a competitive interest rate, Governor Quinn's Welcome Home Illinois program safely expands the pool of qualified home buyers to ensure 2014 is the year the housing market makes a comeback.

"The response to the Welcome Home Illinois program has been overwhelming," IHDA Executive Director Mary R. Kenney said. "Our numbers indicate that 10 percent of the summer home sales in Illinois were financed through this program. It is such a success because it allows first-time buyers to take advantage of a unique moment in time when both home values and interest rates remain low, increasing their overall buying power. We are proud to offer safe and affordable options for buyers looking to own a home across the state of Illinois."

The number of first-time home buyers is at an all-time low at 29 percent, but this is not due to lack of interest. A recent analysis from the Federal Reserve Bank of New York reported that while home ownership continues to be the preferred housing choice of the majority of young households, many are forced to the sidelines because they lack the ability to purchase.

Welcome Home Illinois is the ideal solution for these people, and has allowed home purchasing in Illinois to buck the national trend. According to the Wall Street Journal, new regulations and a stricter lending environment have caused overall mortgage lending in the United States to fall by 54 percent in the first half of 2014, driving the nation's homeownership rate to its lowest level in nearly 20 years.

The first mortgages offered under IHDA's home buyer programs, including Welcome Home Illinois, are funded through the sale of either tax-exempt mortgage revenue bonds or mortgage-backed securities. Welcome Home Illinois' down payment assistance is funded through the Illinois Jobs Now! state capital program and the Illinois Affordable Housing Trust Fund.

Welcome Home Illinois has limited funds available and is open to qualified first-time home buyers on a first-come, first-served basis. With funding quickly being reserved, lenders, realtors and home buyers should act now, while the program is still available, and apply for this mortgage program today. Interested home buyers can find additional details about the program and a list of 100 participating lenders at www.WelcomeHomeIllinois.gov.