Affordable Plus Mortgage (APM)
How it Works: The APM provides qualified homebuyers with $50,000 to use toward the purchase price of a new home. Of this, $15,000 is a 0%-interest loan with no payments due until you sell the home, transfer title or get a cash out refinance. You will also receive a 30-year fixed rate loan of $35,000 at a guaranteed interest rate of 4%.
Benefits of the APM:
- Provides $50,000 in low/no interest financing to apply toward your mortgage
- Significantly lowers your monthly mortgage payment
- Increases your purchasing power by about 20%
- Low out-of-pocket costs
- Eliminates mortgage insurance
- Offers the stability of a fixed rate loan
Out of Pocket Costs: Total out of pocket costs will be around $2,500, including the required downpayment of $1,000.
Allowable Mortgages & Flexible Underwriting: Only fixed rate mortgages allowed. Borrowers must qualify for financing terms with an AHC participating lender. AHC offers flexible underwriting guidelines to help homebuyers with a variety of financial and personal situations. The APM may be right for you, even if you have struggled with credit or debt in the past.
First-Time Homebuyers: You must be a first-time homebuyer. This requirement is WAIVED if the buyer has not owned a home in the last 3 years, is a custodial single parent, or a displaced homemaker.
Income Eligibility:
| Family Size | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| $42,200 | $48,250 | $54,250 | $60,300 | $65,100 | $69,950 | $74,750 | $79,600 | |
| Above effective as of 2/2008. Guidelines are determined by HUD and are adjusted annually. | ||||||||
Property Eligibility: Eligible properties include single family units (including condos and townhomes) owner-occupied properties in Lake County, IL that do not exceed $275,200 in cost. A home inspection must be completed by a home inspector licensed in Illinois or Wisconsin. Any code violations, safety hazards, or major structural issues must be addressed prior to closing.
Education & Counseling: Buyers must complete a HUD-certified homebuyer education class, such as those offered by AHC. Click here for an updated class schedule. APM buyers must also attend an individual counseling sessions with an AHC Housing Counselor. Click here for more information about counseling.
Owner-Occupancy: You must owner-occupy the property for the life of the loan. AHC programs are not available for investors or landlords.