Press launch from the Illinois Senate Democratic Caucus:
December 2, 2020
BUFFALO GROVE — State Senator Adriane Johnson (D-Buffalo Grove) is encouraging households who need to purchase a home however are hindered by pupil loan debt to benefit from Illinois’ new SmartBuy mortgage and pupil loan help program.
“Younger folks, significantly younger individuals who dwell in minority communities, are sometimes held again from buying a house as a result of weight of pupil loan debt,” Johnson mentioned. “Households deserve the peace of thoughts that they will have each a high quality training and a ceaselessly residence.”
The Illinois Housing Improvement Authority launched the SmartBuy program, which affords a secure, reasonably priced 30-year fastened charge first mortgage with $5,000 in help for use towards a down fee and/or closing prices. As well as, this system permits folks to mix their pupil loan debt right into a mortgage in an effort to decrease the excessive rate of interest of pupil loans and do away with the coed loan portion of debt. This system gives 15% of the acquisition price, or as much as $40,000, in pupil loan debt aid to debtors.
A 2018 research by the College of Illinois discovered that excellent pupil loan debt negatively impacts wealth accumulation for all debtors — no matter race — however the influence is particularly vital for Black and Latinx debtors.
To qualify for SmartBuy, potential debtors should have at the least $1,000 in pupil loan debt and should repay their full remaining pupil loan stability at closing. This system additionally requires a FICO mid-score of at the least 640, and candidates should meet sure revenue and buy price necessities.
SmartBuy was created utilizing funding from the historic, bipartisan Rebuild Illinois statewide development plan, and is anticipated to help roughly 500 to 1000 debtors.
This press launch was produced by the Illinois Senate Democratic Caucus. The views expressed listed here are the creator’s personal.