Illinois Smart Buy Program: Student Loan Relief for Homebuyers

Good news for student loan borrowers living in Illinois. Here’s an excellent opportunity to eliminate student loan debt, qualify for a mortgage, and get down payment assistance through the Smart Buy Program.

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Illinois has a great program created under Governor Pritzker that’s been in effect since 2020. It’s a student loan debt relief program offering up to $40,000 in relief for borrowers. The Smart Buy Program is designed to help you get rid of student loans and buy a home.

What are the Smart Buy Program Requirements

Since 2020, the Smart Buy Program has eliminated $17 million in student loan debt for 631 individuals. The requirements are as follows:

• The Silver Tsunami of Student Loan Debt

Borrowers must have a minimum of $1,000 in student loan debt and a maximum of $40,000. First-time and repeat homebuyers can qualify and must have a credit score of at least 640. Homes can also be new construction and must be the student loan borrowers’ primary residence. There is a homeownership education course that must be completed before the closing.

The income and purchase price limits can be seen here.

Some states have similar benefits if you relocate as a remote employee. Other states offer financial incentives, like credits towards a new home or down payment assistance. So, it’s worth researching which states may benefit you financially.

There are also other available programs, such as the Access Forgivable Highlights, that offer the following:

• 4% of the purchase price up to $6,000 in assistance as a down payment & closing costs. This amount is forgiven each month over 10 years. It does not have to be repaid.
• It is a fixed-rate mortgage for thirty years regardless of the mortgage type, whether FHA, VA, USDA, FNMA HFA Preferred, or FHLMC HFA Advantage.
• Besides first-time home buyers, repeat homebuyers also qualify.

For additional programs, click this link.

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