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By Tyler Thompson · Licensed Real Estate Agent · Updated April 16, 2026

Homebuyer Programs in O'Fallon, IL (2026)

Population: 32,262 | Median home price: $338,000 | Est. closing costs: $7,000 - $10,000

Skyline of O'Fallon, IL

O'Fallon is a growing Metro East suburb of St. Louis located in St. Clair County, Illinois, with a population of about 32,262. With a median home price of roughly $338,000 and proximity to Scott Air Force Base, O'Fallon attracts many first-time buyers including active-duty military families using VA loans. Buyers in O'Fallon can layer federal mortgage programs with Illinois IHDA assistance (including the new IHDAccess Home with up to $15,000 at 0 percent interest), St. Clair County-level assistance through the County's Intergovernmental Grants Department, and nonprofit homeownership support from Lewis & Clark Habitat for Humanity (including its O'Fallon Area chapter).

County Programs in St. Clair County

St. Clair County Homebuyer Assistance Program
Type:
Grant
Amount:
Up to $4,000
First-time only:
No

State Programs in Illinois

FHLBank Chicago Downpayment Plus (DPP)
Type:
Grant
Amount:
Up to ,000
First-time only:
No
IHDA Access Deferred
Type:
Deferred Loan
Amount:
5% of purchase price up to ,500
First-time only:
Yes
IHDA Access Forgivable
Type:
Forgivable Loan
Amount:
4% of purchase price up to ,000
First-time only:
Yes
IHDA Access Repayable
Type:
Zero-Interest Loan
Amount:
10% of purchase price up to ,000
First-time only:
Yes
IHDA Mortgage Credit Certificate (MCC)
Type:
Tax Credit
Amount:
Federal tax credit: 25% of annual mortgage interest (capped at ,000/year)
First-time only:
Yes
IHDA SmartBuy
Type:
Forgivable Loan
Amount:
,000 DPA plus up to ,000 toward student loan payoff
First-time only:
Yes
IHDAccess Home
Type:
Deferred Loan
Amount:
Up to ,000 (6% of purchase price)
First-time only:
Yes
Opening Doors / Abriendo Puertas
Type:
Forgivable Loan
Amount:
Up to ,000
First-time only:
Yes

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Lewis & Clark Habitat for Humanity
Type:
Zero-Interest Loan
Amount:
Zero-interest mortgage on affordable Habitat home
First-time only:
No

How to Apply

Step 1:

Build your team. Choose an Illinois-licensed lender with experience on IHDA products and, if applicable, VA loans for Scott Air Force Base buyers. Pair with a local agent who works the Metro East.

Step 2:

Review your income and credit. IHDAccess Home in St. Clair County is available to first-time buyers earning up to approximately $128,110 (varies by household size). Most programs require a 640 or higher credit score.

Step 3:

Complete HUD-approved homebuyer education. The 8-hour course is required for nearly every IHDA and St. Clair County program.

Step 4:

Get pre-approved. Your lender will confirm which combinations of first mortgage (FHA, VA, USDA, or conventional) and DPA (IHDAccess Home, Access Forgivable, Access Deferred, St. Clair County DPA) work for your situation.

Step 5:

Identify a property in St. Clair County. Eligibility for county-level assistance requires the home to be located within St. Clair County. O'Fallon qualifies.

Step 6:

Apply in parallel. Submit DPA applications through your IHDA-approved lender and contact the St. Clair County Intergovernmental Grants Department (located at 19 Public Square Suite 200, Belleville, IL 62220) to apply for county assistance.

Step 7:

Close and maintain records. Most Illinois and St. Clair County DPA is forgivable or deferred over a multi-year occupancy period. Keep your closing package.

Frequently Asked Questions

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