A new program has been introduced in Illinois because of the current status of home sales. This program is called the Illinois Home Start Loan Program.

In this program, first time home buyers are allowed to buy an existing home with zero downpayment. However, this program is not permanent and it will end on November 30, 2009.

According to mortgage brokers, your property should be under contract at least 45 days before November 30, 2009 so that you can avail of this program.

The two loans that the program offers are:

1. 30 Year Fixed Rate Loan
This is insured by the Federal Housing Administration (FHA) and serviced by U.S. Bank Home Mortgage.

2. Tax Credit Advance Loan
This allows first time homebuyers in Illinois the opportunity to get a short term loan to use as the downpayment towards the purchase of their home.