Mortgage Loan Programs

Heartland Bank is proud to provide mortgage loans for families and individuals throughout Illinois. Along with traditional mortgage loans, we offer these great programs for those with less than a 20% down payment.

Contact one of our experienced local Mortgage Specialists to discuss mortgage loan programs that might be right for you!

FHA (Federal Housing Administration)

  • 3.5% down payment (may be gift funds, your own funds, or acceptable secondary financing source)
  • No minimum loan amount
  • Maximum loan amount for most Illinois counties: $271,050 (higher limits available for some northern counties)
  • Not limited to first-time homebuyers

Freddie Mac HomeOne

  • Conventional fixed rate mortgage
  • 3% down payment (may be gift funds, your own funds, or acceptable secondary financing source)
  • Occupant borrowers only
  • At least one borrower must be a first-time homebuyer
  • No geographic or income limits
  • Homebuyer education required for purchase transactions if all borrowers are first-time homebuyers

Freddie Mac Home Possible

  • Conventional fixed rate mortgage
  • 5% down payment (may be gift funds, your own funds, or acceptable secondary financing source)
  • Non-occupant borrower(s) are allowed in certain situations
  • Borrower(s) are allowed to have ownership in another property at the time of closing
  • Secondary financing may now include HELOCs for TLTV ≤ 97%
  • Income limits may not exceed 100% of the area median income (not applicable if property is located in an underserved area)
  • Lower mortgage insurance premium

IHDA Access Forgivable (Illinois Housing Development Authority)

  • 1% (or $1,000, whichever is greater) minimum borrower contribution (gift funds acceptable)
  • 4% of the purchase price ($6,000 maximum) down payment/closing cost assistance
  • Grant funds forgiven monthly over 10 years
  • 30-year, fixed rate mortgage with affordable interest rate
  • Available to first-time and repeat homebuyers statewide
  • Minimum 640 credit score
  • Income and purchase price limits apply

IHDA Access Deferred (Illinois Housing Development Authority)

  • 1% (or $1,000, whichever is greater) minimum borrower contribution (gift funds acceptable)
  • 5% of the purchase price ($7,500 maximum) down payment/closing cost assistance
  • Assistance offered as interest-free loan deferred for life of mortgage (repayment required at home sale, refinance, or loan payoff)
  • 30-year, fixed rate mortgage with affordable interest rate
  • Available to first-time and repeat homebuyers statewide
  • Minimum 640 credit score
  • Income and purchase price limits apply

IHDA Access Repayable (Illinois Housing Development Authority)

  • 1% (or $1,000, whichever is greater) minimum borrower contribution (gift funds acceptable)
  • 10% of the purchase price ($10,000 maximum) down payment/closing cost assistance
  • Assistance offered as interest-free loan repaid monthly over 10 years
  • 30-year, fixed rate mortgage with affordable interest rate
  • Available to first-time and repeat homebuyers statewide
  • Minimum 640 credit score
  • Income and purchase price limits apply

IHDA 1st Home Illinois (Illinois Housing Development Authority)

  • 1% (or $1,000, whichever is greater) minimum borrower personal investment (can be a gift)
  • Competitive 30-year fixed rate mortgage
  • Must be a first-time homebuyer (or exempt)
  • Income limits apply and are based on the county of purchase
  • $7,500 down payment assistance forgivable grant available in Cook, Marion, St. Clair, and Winnebago counties only

Illinois ASSIST Homeownership Grant

  • Fully forgivable grant
  • No second mortgage, deed restriction, lien, or retention agreement required
  • May be combined with Down Payment Plus grant (see details below)
  • Available to all potential borrowers
  • Minimum credit score 640
  • Available grant amount is 2%-5% of loan amount
  • Loan programs include USDA, FHA, and Freddie Mac HFA Advantage
  • Income limits apply and are based on the county of purchase

Rural Development

  • 100% financing, no down payment
  • Competitive fixed interest rate
  • Generous income limits (per county guidelines)
  • No maximum purchase price
  • May allow eligible gift and/or grant programs
  • Not limited to first-time homebuyers

Downpayment Plus (DPP®) Grant

  • Up to $6,000 per qualifying household
  • Must contribute at least $1,000 from borrower’s own personal funds
  • Borrower receives a match of $3 in grant funds for every $1 in contributed personal funds ($1,000 borrower contribution = $3,000 in grant funds; $1,500 borrower contribution = $4,500 in grant funds; $2,000 borrower contribution = $6,000 in grant funds)
  • Income limits apply per county HUD guidelines
  • Not limited to first-time homebuyers