Buying your first home in Washington can feel out of reach, especially when you think about the down payment. The good news is that you may be closer than you think. With the right first-time buyer programs and a clear plan, you can reduce upfront costs and move forward with confidence. In this guide, you’ll learn which programs apply in Washington and Tazewell County, how to check eligibility, and the exact steps to get pre-approved with a lender who understands local options. Let’s dive in.
First-time buyer basics in Illinois
What “first-time buyer” usually means
Most programs define a first-time buyer as someone who has not owned a principal residence in the last three years. Some programs make exceptions for eligible veterans, certain life events, or purchases in targeted areas. Always verify the exact definition for the program you are considering.
Income, price, credit, and property checks
Most assistance programs include income and purchase price limits. These limits vary by county and are updated often. Lenders will also review your credit score, debt-to-income ratio, and property type. It is normal for lenders to have additional guidelines. Plan to confirm current limits and requirements early so you can focus your search with confidence.
Education requirements
Many down payment assistance programs ask you to complete a homebuyer education course before closing. This is usually available online and helps you understand budgeting, loan terms, and the closing process.
IHDA down payment assistance
Why IHDA matters in Tazewell County
The Illinois Housing Development Authority (IHDA) is the main state resource for down payment assistance. IHDA offers mortgage options paired with assistance that may be forgivable, deferred at 0 percent interest, or repayable as a junior lien. Program terms change based on funding. To use IHDA assistance, you must work with an IHDA-approved lender. Learn more on the IHDA website, and use the IHDA lender search tool to find participating lenders.
What to confirm before you apply
- Check current income and purchase price limits for Tazewell County on IHDA’s site.
- Ask lenders which IHDA products they offer and how the assistance is structured.
- Verify whether your chosen property type is eligible.
- Complete homebuyer education as required to avoid delays.
How IHDA assistance can help
IHDA programs are designed to reduce your upfront cash to close and support long-term success as a homeowner. Depending on the product and funding, assistance may not increase your monthly payment. Your lender will explain how the specific program is applied to your loan.
Federal loan options you can pair
FHA for flexible credit
FHA loans are popular with first-time buyers for their low down payment and flexible underwriting. You can review how FHA financing works on the U.S. Department of Housing and Urban Development site. Many buyers pair FHA financing with state or local assistance, subject to program rules.
Conventional 3 percent down programs
Conventional low-down-payment options such as Fannie Mae’s HomeReady and Freddie Mac’s Home Possible can be a strong fit for eligible borrowers. These programs often come with income limits and require solid credit. Ask your lender how these compare with FHA for your situation.
VA and USDA in Tazewell County
If you are a veteran or on active duty, VA loans can offer powerful benefits, often including no down payment and no private mortgage insurance. For homes in more rural parts of Tazewell County, USDA loans may also provide no-down-payment financing. Explore the USDA program overview for the Single Family Housing Guaranteed Loan on the USDA Rural Development site, and check whether a specific property address is eligible using the USDA property eligibility map.
Tax help: Mortgage Credit Certificate
A Mortgage Credit Certificate, or MCC, can reduce your federal income tax liability by allowing a portion of your mortgage interest to be claimed as a tax credit. Availability is local and limited, and MCCs are issued by state or local governments. Review background information from HUD on Mortgage Credit Certificates and ask your lender or IHDA if MCCs are currently offered for Tazewell County buyers.
Local resources in Washington and Tazewell County
Some municipalities or county agencies provide small grants, counseling, or periodic down payment matching funds. These opportunities come and go, so it is smart to check local sources:
- City information and contacts: City of Washington, IL
- County resources and updates: Tazewell County official site
If you need to identify public housing agencies or counseling contacts, HUD maintains a PHA contact directory. Availability varies, so verify current programs before you plan to use them.
Step-by-step: your pre-approval plan
1) Gather documents
Pull these items together to speed things up:
- Photo ID and Social Security numbers for all borrowers
- Pay stubs for the last two months
- W-2s and 1099s for the last two years, plus recent federal tax returns if self-employed
- Bank statements for the last 2 to 3 months
- A list of monthly debts, including student loans, car loans, and credit cards
- Proof of any gift funds, with gift letters that meet program rules
2) Check program eligibility
- Confirm current IHDA income and purchase price limits for Tazewell County on the IHDA website.
- For USDA, enter the property address into the USDA eligibility map.
- If you are a veteran or active duty, ask a lender to confirm your VA benefit eligibility.
3) Choose the right lender
Work with an IHDA-approved lender if you plan to use IHDA assistance. Use the IHDA lender finder and interview lenders about their program experience. Ask which loan type they recommend for your credit profile and budget.
4) Complete homebuyer education
If required for your program, take the approved course early. Your lender or IHDA can provide a list of accepted providers. Finishing this step in advance reduces closing delays.
5) Get a written pre-approval
A full pre-approval letter documents your income, assets, credit, and the loan amount the lender supports. Make sure the letter notes whether down payment assistance is part of the plan.
6) Work with a local real estate agent
Choose an agent who understands IHDA, USDA, and other first-time buyer tools. The right guidance helps you focus on eligible properties and navigate program rules smoothly.
7) Ask the right questions
Before you lock in a strategy, ask:
- Which assistance programs am I eligible for today?
- Is the assistance forgivable, deferred, or repayable?
- What are the current income and purchase price limits for Tazewell County?
- Is homebuyer education required, and which providers are approved?
- What is the timeline for the assistance approval and closing?
- Are there any restrictions on seller credits, repairs, or property types?
Avoid common pitfalls
Don’t quote limits from memory
Income and price caps change. Always verify numbers on IHDA’s site and confirm lender overlays.
Don’t wait on education
If a course is required, complete it early. That simple step often prevents last-minute delays.
Don’t assume a property qualifies for USDA
Use the USDA map to check each address. Eligibility can change within the same ZIP code.
Why a local guide matters
First-time buyer programs reward preparation. A local expert helps you line up the right loan, match assistance with your budget, and present a strong offer when the right home hits the market. With decades of Central Illinois experience and a client-first approach, you get steady guidance from search to closing. If you are ready to map your options and move forward, reach out to Carolyn Catton to plan your next steps in Washington and across Tazewell County.
FAQs
What first-time buyer programs apply in Washington, IL?
- IHDA down payment assistance, FHA, conventional low-down-payment options, VA for eligible service members, USDA for eligible rural properties, and potentially an MCC if locally available.
How do IHDA down payment programs work?
- IHDA pairs mortgages with assistance that may be forgivable, deferred at 0 percent interest, or repayable; terms depend on the specific program and funding and are accessed through IHDA-approved lenders.
Are there income or price limits in Tazewell County?
- Yes, many programs set county-level income and purchase price limits that change over time; verify current limits on IHDA’s website before you apply.
Can I combine IHDA with FHA or conventional loans?
- Often yes, subject to program rules and lender approval; your lender will recommend whether FHA, HomeReady, or Home Possible pairs best with available assistance.
Do VA or USDA loans work in Tazewell County?
- VA loans are available for eligible veterans and active duty buyers countywide, while USDA loans may apply to properties in eligible rural areas, which you can confirm on the USDA map.
What documents do I need for pre-approval?
- Expect to provide ID, Social Security numbers, recent pay stubs, W-2s and 1099s, bank statements, a list of debts, and documentation for any gift funds following program rules.
Where can I find local housing resources?
- Start with the City of Washington and Tazewell County websites for any local updates, then ask your lender or IHDA about current programs and counseling options.
