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"We owe a huge debt of gratitude to the men and women who are
willing to leave behind their families and comfortable lives to face
danger head-on and preserve our freedom. We should do everything we
can to help our soldiers and veterans succeed when they come back
home," the governor said. "That's why we created the G-I Loan for
Heroes program -- to help veterans and active-duty personnel and
their families achieve the American dream of owning their own homes,
so they can build equity and build better lives."
The new program offers a low-interest rate first mortgage for 80
percent of the purchase price and an interest-free second mortgage
for 20 percent of the purchase price, up to $40,000. Home buyers
under the program will also receive a grant up to $2,500 to help
with closing costs and free homeownership counseling, which is
compulsory.
Applicants need to contribute $1,000 of their own money toward
the down payment on the purchase of a single-family home,
condominium or duplex. Income, purchase price limits and credit
qualifications also apply and vary from county to county. To qualify
in Cook County, a veteran or active-duty serviceman or woman with a
family of three or more must have a household income of no greater
than $83,260, and the purchase price of the home cannot exceed
$325,890.
Veterans and men and women currently on federal active duty in
the armed services and the Reserve forces may qualify for assistance
in buying a primary residence even if they owned a home in the past.
Only active-duty service personnel need to be a first-time home
buyer to qualify for the G-I Loan.
According to figures from the Illinois Department of Veterans'
Affairs, an average of 900 veterans visit the department's field
offices every year looking for assistance to qualify for home loans.
Presently the only option they had is to apply for the federal VA
loan, which has a zero down payment policy but offers market
interest rates (currently 6.33 per cent). The VA loan is also only
available to veterans.
The new G-I Loan for Heroes program is available to current
active-duty service personnel, federally activated National
Guardsmen and reservists, as well as veterans, and offers interest
rates as low as 4.75 percent in some cases.
"The governor has done something exceptional here because he has
pulled together every available resource into one home-buyer
package. For the families who will benefit from this program, it
will provide them with the stability of homeownership and still
leave them with money in their pocket for everyday necessities,"
said DeShana Forney, Illinois Housing Development Authority
executive director.
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"Under the governor's leadership, I am proud to see Illinois set
an example of how to honor those who serve by providing
homeownership opportunities. Hundreds of veterans a year visit our
agency's field offices to apply for a certificate of eligibility for
a home loan, indicating a real demand for homeownership among
veterans. Our veterans and active-duty service personnel deserve
more options. Governor Blagojevich's G-I Loan for Heroes is a much
more fiscally sound mortgage package than is available through the
federal VA or any other lender," said Tammy Duckworth, Illinois
Department of Veterans' Affairs director. Many families of active-duty service personnel struggle to
survive while their active-duty family member is away serving their
country. Often, servicemen and women are forced to let go of their
higher-paid civilian jobs during deployment, which can make
homeownership unattainable.
Dennis Lopez, a 52-year-old veteran honorably discharged from the
Marine Corps in 1978, plans to apply for the new G-I Loan to help
buy a home for himself, wife Angie and 6-year-old daughter Ekterina.
Lopez says he was forced to return to renting his current home in
south Chicago after struggling to meet mortgage payments on a
previous home. He hopes the free homeownership counseling offered
under the program will help him manage the family's loan
obligations.
"I am grateful to Governor Blagojevich for making Illinois the
country's first state to invest in the homeownership needs of our
veterans and active-duty service personnel. With high property
prices, veterans and active servicemen and women can't keep up,"
said Lopez. "This program will help me to provide a safe and stable
environment for my daughter to grow up in. Aside from the honor of
serving my country, it is good to know that my four years of active
duty on the USS Constellation aircraft carrier will help me afford
to buy my own home."
The Lopez family joined Forney, of the Illinois Housing
Development Authority, and Duckworth, of the Department of Veterans'
Affairs, to launch the G-I Loan for Heroes program in Chicago. The
new mortgage program will be implemented by the Illinois Housing
Development Authority as part of the state agency's I-Loan Mortgage
program.
The Illinois Housing Development Authority does not originate
loans directly to consumers. To receive a home mortgage through this
program, qualified veterans and active-duty service personnel must
contact one of the approved partner banks
listed at
www.ihda.org or
call 312-836-5244 to receive the list by mail. The agency will
continue to train its more than 340 partner lenders at over 1,000
branches across the state to accept applications for the
G-I Loan
for Heroes.
[Text from file received from
the
Illinois Office of
Communication and Information]
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