The DuPage Homeownership Center has several programs available for prospective home buyers. Home buyers education classes, pre-purchase counseling and the annual home buyers fair are appropriate for everyone, and are great tools to put you on the path to homeownership. The DuPage Homestead and Section 8 Homeownership Programs provide special financing options for qualified homebuyers who are having trouble affording a home in expensive DuPage County.

Click on the links below to see what programs are appropriate for you.

Home Buyer Education Classes

Pre-Purchase Counseling

Annual Home Buyers Fair

Our Own Home

The DuPage Homestead Program (special financing terms for qualified homebuyers)

What is the DuPage Homestead Program?

How the Homestead Program Financing Works

Free Home Buyer Education Classes

Get on the path to ownership with this comprehensive, step-by-step guide to the home-buying process. We offer valuable consumer education on obtaining a mortgage, finding a property and selecting professional services. We also provide information on special homeownership programs in DuPage County for low-and-moderate-income first-time buyers.

Classes are offered twice most months at various locations. Space is limited and reservations are required. Call 630/260-2500 to register. Please, no children!

Upcoming class dates and locations are as follows

Class Date

Class Location

Saturday, May 10, 2008
9 a.m. to 1 p.m.

Wheaton City Hall
303 W. Wesley Street
Wheaton , IL 60187

Saturday, May 17, 2008
9 a.m. to 1 p.m.

St. Joan of Arc Catholic Church
820 Division Street
Lisle , IL 60532

Saturday, June 7, 2008
9 a.m. to 1 p.m.

Mainstreet Organization of REALTORS
6655 S. Main Street
Downers Grove , IL 60516

Saturday, June 21, 2008
9 a.m. to 1 p.m.

DuPage County Government Center
Administration Bldg # 421
421 N. County Farm Road
Wheaton, IL 60187

Saturday, July 12, 2008
9 a.m. to 1 p.m.

St. Isidore Catholic Church
427 W. Army Trail Road
Bloomingdale, IL 60108

Free Pre-Purchase Counseling

After attending the class, you are eligible to receive free pre-purchase counseling. Our housing counselors will meet with you to determine what you can afford and help you develop an Action Plan to achieve homeownership. We also provide a copy of your merged credit report and help you address credit problems that may prevent you from becoming a homeowner. (Credit report cost is $17 per individual or married couple). More information on individual counseling will be available at the class.

Free Annual Home Buyers Fair

The Annual Home Buyers Fair is a free community service that is held each spring. The Fair offers over 40 exhibits, information and workshops specifically for first-time home buyers. Meet with mortgage lenders, realtors and home inspectors to learn about affordable lending options and other real estate services. Community agencies will also be on hand to provide information about low-cost housing options and consumer protection services. Various workshops are offered throughout the day as well.

DuPage Homestead Program

What is the DuPage Homestead Program? The DuPage Homeownership Center (DHOC), a non-profit, HUD-certified Housing counseling agency, created the Homestead Program in 1992 to help first-time homebuyers who were being priced out of the high-cost DuPage housing market. Homestead uses a reduced-interest mortgage-financing package to boost the buying power of income-eligible first-time buyers to enable them to afford a home in DuPage County. Because you are paying less in interest charges than with market-rate financing, you can afford more house!

How do I qualify for the Homestead Program? You must meet ALL of the following eligibility criteria at the time you close on a home. Counseling may help you to meet some criteria that you do not currently meet. Meeting these criteria does not guarantee that you will get a loan.

None of the applicants have owned a home as their principal residence in the past three years.

After covering your downpayment and closing costs, total liquid household assets such as checking, savings, money markets, mutual funds, etc. (not including retirement plans), do not exceed $20,000.

Any bankruptcies must have been discharged at least two years and you must have reestablished at least 24 months of traditional credit.

None of the applicants owes federal, state or local tax debts.

Total GROSS household income cannot exceed the following limits (gross income is defined as income from all sources, including child support, before any deductions):

Family Size	1	2	3	4	5	6	7	8
Household Income*	$42,200	$48,250	$54,250	$60,300	$65,100	$69,950	$74,750	$79,600
*Income guidelines are determined by HUD and adjusted annually; these figures effective as of February 2008.

I'm a Housing Choice Voucher Holder. Can I use my voucher with the Homestead Program? Yes! Please refer to the paragraph below titled "Special Information for Housing Choice Voucher Holders"

What are the downpayment requirements? You must put down at least 3%. Of this, a minimum of 1% must be FROM YOUR OWN FUNDS . Beyond that, you can put additional money toward the downpayment (there is no maximum), and up to $10,000 of any amount over 1% can be from a gift (Your combined loan-to-value ratio cannot exceed 100%). In addition to your downpayment, you must have one mortgage payment in reserve after you close. For example, if your monthly mortgage payment is $1,000, you must have $1,000 set aside at closing in a "rainy day fund" for emergencies. This is for your own financial protection. Your housing counselor will explain this requirement in greater detail.

Does DHOC charge any fees to participate in Homestead? We charge $17 per individual or married couple for a merged credit report. We also charge a $400 administration fee, which you pay at closing ONLY if you buy a home through Homestead.

Are there any restrictions on the house I can buy? You select the house you want to buy with the following restrictions: (1) The price of the house will depend on what you can afford, but in no case can it exceed $275,200; (2) The house must be located in DuPage County; (3) No multi-family dwellings (you can buy a condominium, townhouse or your side of a duplex); (4) The house must pass inspection by a licensed ASHI home inspector; (5) You must be able to afford the property as determined by your counselor and mortgage lender.

Can I buy a house through this program if I have bad credit or too much debt? DHOC will counsel you on budgeting and credit management so that eventually you can qualify for a mortgage. Please understand that you may be facing six months or more of work to address past problems before you can qualify for a mortgage. DON’T BE DISCOURAGED! It is definitely worth the time and effort to become financially stronger so that you can eventually buy a home. We encourage you to enter the program.

How long will it take to purchase a home through the Homestead Program? That depends on two key factors:

Your financial situation when you enter the program - you have to meet the underwriting criteria for the program. Some of the key concerns will be minimum downpayment, credit scores and time on the job. These criteria change from time to time based on what is happening in the mortgage lending industry. (Foe example, in the wake of the recent foreclosure crisis, lenders are raising the minimum required credit scores). Your housing counselor will advise regarding these issues.

The availability of funds - because this program is partially funded using government money, DHOC has only limited control over both the timing and amount of funds available. The soonest you would be able to purchase is approximately six months.

Remember that counseling can help you work through credit problems and other issues if you do not qualify to purchase when you enter the program.

How do I enter the program?

STEP ONE: Attend a DHOC Home Buyer Education Class and receive your Certificate of Completion. YOU MUST ATTEND THIS CLASS BEFORE YOU CAN PROCEED TO THE NEXT STEPS. All household members age 18 and over must attend the class, except adult children or senior relatives living in the home who will not be on the mortgage (although any income they receive must be disclosed to determine household program eligibility). Click here to see when upcoming classes are scheduled. Registration is required.

STEP TWO: Obtain an Application Package at the Home Buyer Education Class.

STEP THREE: Read the Application Package carefully and complete ALL of the fields.

STEP FOUR: Assemble COPIES of the following documents:

Federal tax returns for the past two years

W-2s for the past two years

If self-employed, year-to-date profit-and-loss statement

Pay stubs for the past 30 days for all household members age 18 and over

Bank statements for the past two months

A check or money order for $17 per individual or married couple for your credit report, made payable to the DuPage Homeownership Center, or a copy of your credit report (if it is less than six months old). Please note that we cannot accept originals and we cannot make copies for you.

STEP FIVE: Submit your completed application form and documents to

DuPage Homeownership Center

1333 N. Main Street

Wheaton, IL 60187

You can submit your information by mail. When we receive your package, we will call you to schedule an appointment for an individual intake session. If we cannot reach you within 30 days, we will mail your credit report payment back to you and shred your documents.

You also can deliver your information in person to our office most weekdays. Please call ahead to make sure someone will be available to receive your documents – (630) 260-2500. When you hand them in, we will schedule an appointment for you to come back for an individual intake session. REMEMBER, PLEASE CALL AHEAD BEFORE COMING!

STEP SIX: At your individual intake session, you will meet with a housing counselor who, prior to the meeting, will have reviewed your documents, obtained your credit report, assessed your initial eligibility for the program and estimated your purchasing power based on the information you provided. The counselor will develop a customized Homeownership Action Plan for you detailing a suggested course of action to help you achieve homeownership. This may include recommendations for addressing credit problems or other barriers that may be preventing you from becoming a homeowner. It also will include a list of any additional information we need from you in order for you to move forward in the program. If the counselor discovers you are not eligible for the Homestead Program, she will provide information on other resources to help you purchase a home.

STEP SEVEN: You will be responsible for working on any issues identified in the Homeownership Action Plan. Your housing counselor will contact you periodically to check on your progress and you can feel free to contact her with any questions or concerns you might have. You will remain in our active client database as long as you wish while you are working on your Action Plan, provided you maintain contact with your counselor.

STEP EIGHT: When you have completed your Action Plan (however long that takes will depend on your individual circumstances), you will be placed in our “Market Ready” pool. Youwill attend a Homestead Placement Class, where we will prepare you for the final stages of the process, including critical information about property selection and contract negotiation. (Please note that if it has been more than one year since you attended Home Buyer Education, you also will have to repeat that course.) Then you will have the opportunity to apply to one of our participating lenders to be preapproved for financing. (Please note: If the number of “Market Ready” clients exceeds the amount of available funds, applicants will be prioritized based on the date of their initial intake session.)

STEP NINE: Once you are preapproved for financing by a participating lender, you can shop for a home.

Some Important DON’TS:

Do NOT bring originals of your personal documents. We will accept copies only.
Do NOT ask our staff to make copies; we do not have the time or budget to do this for you.
Do NOT leave your documents in the unsecured mailbox outside our door. We cannot be responsible for any items left outside our offices.
Do NOT try to hand in your documents at our offsite events, such as our Home Buyer Education Classes or our Annual Home Buyers Fair. We will NOT accept them, as we have no way to secure your documents at these public events.
Do NOT shop for a home until you are accepted into the program and PREAPPROVED for financing (see Step Nine above).

Questions? Call the DuPage Homeownership Center at (630) 260-2500

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Special Information For Housing Choice Voucher Holders

You must read and comply with the program requirements below

Housing Choice “Section 8” Voucher Holders now can use their vouchers with the DuPage Homestead Program. In order to qualify, you must meet the following ADDITIONAL program requirements (you also must meet the DuPage Homestead Program requirements listed earlier).

Please note that you must meet ALL of the eligibility criteria at the time you close on a home. Counseling may help you to meet some criteria that you do not currently meet. Meeting these criteria does not guarantee that you will get a loan.

Applicant must have a current “Section 8” Housing Choice Voucher.

ALL applicants must have a minimum annual income of $10,300.

Applicants must be earning the equivalent of 2,000 hours per year at the federal minimum wage and thereby have earned income from employment of at least $10,300.

Applicants must have been employed for the past 12 months.

Exception: Persons with disabilities do not have to be working. They must have a minimum income of $10,300 but may qualify with income from non-earned sources such as social security or disability.

How the DuPage Homestead Program Financing Works

Homestead provides mortgage financing at reduced interest charges relative to what you would pay if you used regular market financing. You pay less in interest so more of your money goes directly toward the purchase price of the home, enabling you to afford more.

Homestead is what we call a “layered financing package.” Here’s how the layers work:

	Amount of Funds	Source of Funds	Terms
First Mortgage	Approximately 48% of the purchase price of the home	Participating mortgage lender, in cooperation with Illinois Housing Development Authority	30-year mortgage at a fixed interest rate that is about ½ to 1% below current market rates
Second Mortgage	23% of the purchase price of the home	Harris Bank	30-year mortgage at a fixed interest rate of 4% (NOTE: Voucher Holders do not receive the second mortgage; instead, they receive additional government funds)
Third Mortgage	$30,000	Illinois Affordable Housing Trust Fund (a state pool of funds used to provide affordable housing)	No monthly payments; no interest charges or shared appreciation; due on sale or transfer of home
Fourth Mortgage	15% of the purchase price of the home.	DuPage County’s HOME federal block grant	No monthly payments; no interest charges or shared appreciation; due on sale or transfer of home
Downpayment/Closing Cost Grant	$3,000	Illinois Affordable Housing Trust Fund	Forgiven - can be used for part of your downpayment and/or closing costs. If used for your downpayment, remember you must still have at least 1% of your own funds in the transaction.

Example

To purchase a $200,000 house using typical market financing, you would need to have a total annual income of approximately $47,000 (assuming no other debts). With Homestead, you would need a total annual income of approximately $34,000.

Please note that this is just an example – your actual affordability will depend on current interest rates and your unique individual financial situation.