McHenry Savings Bank is participating in Downpayment Plus, a statewide affordable housing program.
The program focuses on providing financial assistance to qualified low-income homebuyers in Illinois that need help in meeting the downpayment requirements and closing costs associated with buying a home.
The bank will host two workshops for interested homebuyers at 9:30 a.m. March 9, and 7 p.m. March 13 in the community room of its main office, 353 Bank Drive, McHenry. Sue Miller, president of the Heartland Realtor Organization, will be participating in the workshops. Space is limited. For reservations, call 815-331-6431.
To qualify for grant consideration, an applicant’s aggregate annual household income must be 80 percent or less than the area median family income, adjusted for family size, according to Jim Lukas, vice president-mortgage lending at McHenry Savings Bank. To qualify, the annual household income of a family of four seeking to purchase a home in McHenry County cannot exceed $58,900. "The program’s income limits vary by household size, thus, interested parties should contact us for income limit details,” Lukas said.
Downpayment Plus grants are funded by the Federal Home Loan Bank of Chicago. The program is administered by the Illinois League of Financial Institutions. Qualified families needing downpayment and closing cost assistance must apply for home financing at McHenry Savings Bank and meet the bank’s loan underwriting criteria.
A qualified household will be eligible to receive up to $6,000 in subsidized assistance for the acquisition of a owner-occupied one- or two-family dwelling. The homebuyer must make a cash contribution of at least $1,000 towards the purchase of the home.
Lukas said McHenry Savings Bank will apply for the grants on behalf of the borrowers. Borrowers must receive home ownership education to help ensure that they understand the homebuying process as well as the financial responsibilities of home ownership.
Lukas said that the Downpayment Plus Program will help many Illinois families overcome one of the major obstacles to realizing the dream of home ownership – the inability to afford the downpayment and closing costs.
“We are delighted to be able to participate in this program and look forward to expanding the home ownership opportunities of low-income homebuyers in our area,” Lukas said.