A $25 million Illinois program is paying off student loans to encourage homeownership, and that’s drawing buyers to the state – Chicago Tribune
Peter Maloney wanted to move back to the Chicago area from Florida, but with $44,000 in student loans to repay he figured it would be several years before he could buy a home.
Maloney, 26, considered moving to Indiana, where he would be close to family and homes are less expensive. But he and his fiancee were sold on Illinois after learning about a state program that helps homebuyers pay off student loans and provides down payment assistance.
In June, Maloney will close on the purchase of a two-bedroom, two-bath condominium in Plainfield. “It definitely made the decision (to move) easier, and buying a home possible,” he said.
The SmartBuy program, offered by the Illinois Housing Development Authority, has drawn interest from other out-of-state buyers too, said Executive Director Kristin Faust.
The agency hopes the program, which began in December, will help remove one financial barrier to homeownership and make access more equitable.
The program will pay off up to $40,000 in student loans, or a loan amount equal to 15% of the home purchase price, whichever is lower. It will also provide a $5,000 loan toward a down payment or closing costs.