Though there are some signs that it starting to get better, we all know that the economy is bad right now.  I've been doing what I can in the General Assembly to help make things better.  I helped pass a job-creating capital construction bill that will put hundreds of thousands to work, and I've been working with the Governor's Office and the Department of Natural Resources to help get several new coal mines open.  

There is one thing about this economy that's good for some people.  The price of houses has been going down.  Now that might not be good news if you already own a house, but if you're looking to buy your first home, you might be in luck.  I know you might be thinking that even at lower prices, you can't afford to buy a new home, but there are state and federal programs that might be able to help you.

The Illinois Housing Development Authority (IHDA) is offering first-time homebuyers help through the Home Start Loan Program.  There are two parts to this program-30 Year Fixed Rate Loans and Tax Credit Advance Loans.  The 30 year loans have a fixed rate, which will help you budget your payments.  As of July 17, the interest rate was set at six percent, but it is subject to change, so be sure to double check before you sign up for the loan.

The tax credit advance loan is meant to help first-time homebuyers take advantage of an $8,000 one-time tax credit from the
federal government.  This tax credit is part of the federal stimulus package and is only available until November 30.  Since it is a credit, homebuyers would not get the benefits of this offer until they pay their taxes next year.  The IHDA understands that some homebuyers may not have the cash on hand, so it is offering advance loans against the credit.

Qualified homebuyers can receive loans of $6,000 or 3.5 percent of the value of the home-whichever is higher but still within the $8,000 limit of the credit.

There are some eligibility requirements for both of the Home Start Loan Programs.  The first is that you must be buying your first home. Veterans and active-duty military personnel can qualify even if they have already purchased a home.  There are also income and credit score requirements, and applicants must take a homebuyer education class.  For more information about program requirements, visit the IHDA website at www.ihda.org.

I encourage anyone who is considering buying their first home to take a look at these programs.  They might help put an affordable house in reach.  Purchasing a home will also help the hurting housing market start to recover, and anything that helps the economy recover right now is a good investment.