Village of Orland Park Joins Illinois Communities to Help Home Buyers

Village of Orland Park Joins Illinois Communities to Help Home Buyers
Posted on 02/19/2018

The Village of Orland Park is joining a number of Illinois communities and transferring its volume cap authority to the City of Aurora to provide potential funding for the Assist Homeownership Program.

This program offers two options to homebuyers - funds to pay all or most of the closing costs and down payment applicable to their mortgages and the Mortgage Credit Certificate (MCC) Program to help reduce the home buyer's ongoing cost of borrowing.

"The housing market this past year has been strong in Orland Park," said Trustee Michael Carroll, chair of the village's Finance Committee. "As more and more banks in the Orland Park area begin offering the program, Orland Park residents who qualify will be able to minimize the amount of money needed on hand to purchase a home."

If eligible to participate in the program, homebuyers in Orland Park would be offered an RHA/VA/RD 30-year, fixed rate mortgage, as well as a full three percent cash grant based on the amount borrowed. The cash grant may be used to offset some or all of the home loan's down payment and closing costs.

In addition, Mortgage Credit Certificates (MCC), a federally authorized program created as an alternative to tax exempt housing bonds, would be offered to qualified Orland Park homebuyers to reduce effective interest costs of the mortgage. These certificates enable the homeowner to qualify for a federal income tax credit equal to a percentage of the interest paid on their loan each year. MCC holders still qualify for a regular deduction of the remaining interest paid on their home loans.

"Buying a home is a big step," Carroll said. "We're excited to be a part of a program that will help qualifying home buyers purchase their homes in Orland Park."

Orland Park's volume cap authority is set by the Internal Revenue Code, is equal to $100 per resident and is transferable to another home rule unit of government to provide funding for programs such as Assist. The Assist Program is available to all Orland Park homebuyers that qualify.

If Orland Park's volume cap authority is utilized to issue bonds to provide funding for the program, the village will receive a fee equal to one percent of Orland Park's volume cap authority. For calendar year 2018, Orland Park's authority is $5,690,535.

Questions may be directed to the village's Finance Department at 708/403-6170.