See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 16, 2026
Homebuyer Programs in Pekin, IL (2026)
Pekin is a city of about 32,000 in Tazewell County, central Illinois, sitting along the Illinois River about 10 miles south of Peoria. Home prices here are among the most affordable in Illinois, with a median sale price near $130,000, which makes even a small amount of down payment assistance go a long way. Pekin buyers can tap the new IHDA Access Home program for up to $15,000 (6% of purchase price) in deferred second-mortgage assistance, plus FHLBank Chicago's Downpayment Plus Program for up to $10,000 in forgivable grant money. Habitat for Humanity Greater Peoria Area builds affordable homes across Tazewell County with 0% interest mortgages, and Tazwood Community Services in Pekin offers free homebuyer education and counseling. Combined with FHA, VA, USDA, and conventional low-down-payment mortgages, many Pekin buyers can close with very little cash out of pocket.
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount) | No | View → |
| IHDA Access Deferred | Deferred Loan | — | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | — | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | — | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | — | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | — | Yes | View → |
| IHDAccess Home | Deferred Loan | — | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | — | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount)
- First-time only:
- No
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- First-time only:
- Yes
- Type:
- Tax Credit
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- 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
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Greater Peoria Homeownership Program | Zero-Interest Loan | Affordable home with 0% interest mortgage (no down payment required) | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with 0% interest mortgage (no down payment required)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. IHDA programs require a minimum credit score of 640 and first-time buyer status (no home ownership in the past three years). Income limits vary but are generally at or below 80% of Area Median Income for Tazewell County.
Step 2: Complete homebuyer education. Tazwood Community Services in Pekin provides free financial counseling and homebuyer education at 610 Park Avenue, Pekin. Call 309-266-9941 to schedule an appointment. Office hours are Monday-Friday, 8:00 AM - 12:00 PM and 1:00 PM - 4:00 PM. IHDA-approved online courses are also acceptable.
Step 3: Get pre-approved with an IHDA-approved lender. IHDA works with more than 160 participating lenders across Illinois. Use the IHDA lender locator at ihdamortgage.org to find one serving Pekin and Tazewell County.
Step 4: Explore Habitat for Humanity if you have income at or below 80% AMI. Habitat for Humanity Greater Peoria Area builds affordable homes across Peoria, Tazewell, Woodford, and Marshall Counties, with sweat equity requirements and a 0% interest mortgage.
Step 5: Find a home within program limits. Most IHDA programs have purchase price limits well above the Pekin median, so most Pekin homes qualify. Confirm with your lender before writing an offer.
Step 6: Submit your application. Your IHDA lender coordinates the state assistance and any layered grants like Downpayment Plus.
Step 7: Close on your home. Assistance funds are delivered at closing.
Frequently Asked Questions
How much down payment assistance can I get in Pekin?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price?+−
What homebuyer education is required?+−
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