Mortgage Assistance Programs Available in Illinois

Across the United States, many individuals struggle to pay their mortgages. As of mid-2025, total U.S. household debt had reached approximately $18.4 trillion, with housing-related debt, primarily mortgages, increasing by $131 billion in just one quarter to $12.94 trillion.

Additionally, 3.5% of U.S. loans were delinquent, meaning they were at least 30 days past due, but not yet in foreclosure. In Illinois, about 0.8% of mortgages were between 30 and 89 days delinquent at the end of 2021. So it’s vital to know where to turn for help. This guide explains Illinois mortgage assistance programs in plain, direct terms.

Illinois Emergency Homeowner Assistance Fund (ILHAF)

The Illinois Homeowner Assistance Fund (ILHAF) is a federally funded program to help homeowners facing financial hardship due to COVID-19. Eligible residents can get up to $60,000 paid directly to their mortgage servicer or taxing authority.

To qualify, you must:

Earn less than 150% of the Area Median Income
Live in the home as your primary residence
Be at least 30 days late on the mortgage or property tax
Have a financial hardship that began or worsened after January 21, 2020.

Illinois Housing Development Authority (IHDA) Down Payment & Support Programs

IHDA offers help for both future and current homeowners. It runs several helpful programs:

Up to $10,000 in down-payment assistance for eligible buyers.
A second mortgage for the down payment, worth up to 4% of the home’s sale price, is forgiven over a 10-year period.
An interest-free grant of up to 10%, forgiven over 10 years.
Or a 5% down-payment grant (max $7,500), interest-free, due only when you sell the home.

To be eligible, you typically need a credit score of at least 640 and an income below approximately $123,500 (which varies by county). These tools help lower upfront costs, making home buying more realistic.

Illinois Hardest Hit Fund

If you’ve faced a hardship and have seen your income drop by at least 15%, the Illinois Hardest Hit Fund may offer mortgage help. It’s designed for individuals who qualify by demonstrating a significant income loss and meeting program requirements.

Foreclosure and Legal Help

These options offer free help if you’re at risk of losing your home.

Cook County Mortgage Foreclosure Mediation Program (CCMFMP)

The Cook County Mortgage Foreclosure Mediation Program is a free service designed to help homeowners who have received a foreclosure court summons. The goal is to provide residents of Cook County with the tools, guidance, and legal support necessary to face foreclosure with options rather than fear. Through housing counseling, legal aid, and structured mediation, the program connects homeowners and lenders to facilitate fair agreements before foreclosure proceedings are initiated.

To participate, the homeowner must reside in Cook County, and the property in foreclosure must be their primary residence. Qualifying properties include single-family homes, condominium units, and apartment buildings with up to four units. Participation does not happen automatically; it begins only after the homeowner has been served with a foreclosure summons. At that point, they can call the program’s helpline at (855) 452-2637 (TDD: 312-836-5222) to start the process.

Once enrolled, the homeowner is connected with a HUD-certified housing counselor at no cost. This counselor helps review the homeowner’s financial situation and explains possible alternatives to foreclosure. Legal assistance is also available at no cost through partners such as the Chicago Legal Clinic and Chicago Volunteer Legal Services. Mediation sessions are then scheduled, with professional mediators from the Center for Conflict Resolution guiding discussions between the homeowner and the lender.

Free Legal Help Through Non-Profits and Law Schools

Try the following options:

Land of Lincoln Legal Assistance Foundation
Catholic Charities Legal Assistance
Legal Assistance Foundation of Metropolitan Chicago
Prairie State Legal Services (call 888-966-7757)
Illinois Legal Aid
If you’re a renter in a building facing foreclosure, Lawyers’ Committee for Better Housing offers free help in Cook County (call 855-207-8347).

Will County: Local Mortgage & Utility Help

If you live in Will County, there’s help too. If you earn under 80% of the Area Median Income and are behind at least one month on mortgage, rent, or utilities, you may qualify for assistance. Local agencies like the Will County Center for Community Concerns can help check your eligibility and apply .

Illinois Homelessness Prevention Program

This broader program is particularly helpful when homelessness is imminent.

The Homeless Prevention Program offers assistance with mortgage or rent, utilities, and other services, supported by case management, if you’re in danger of eviction, foreclosure, or homelessness.

Final Thoughts

If paying your mortgage is becoming difficult, Illinois offers numerous clear and helpful programs. Whether it’s direct cash help, grants, legal support, or mediation, help is available. You don’t need to go through this alone. Reach out early. It’s smart, not late.