KANE COUNTY FIRST-TIME HOMEBUYER LOAN PROGRAM– EFFECTIVE 2/2021 – PREVIOUS VERSIONS NO LONGER VALID
Program Area Verification:
Upon being determined “qualified” for the program, homebuyers will be issued a “Qualification Letter” including
a “Program Area Verification Form”. Under this program, homebuyers work with a lender of their choice to
identify the home they wish to purchase, subject to program guidelines. Once you identify the home, and
BEFORE entering into a contract, homebuyers must submit the Program Area Verification Form to County staff,
who will confirm that the address meets program guidelines. (County staff will make its best attempts to
respond within 24 hours on business days to Program Area Verification form requests). After staff has confirmed
eligibility of the property, you will be provided a written confirmation letter including a First-Time Homebuyer
Loan Program Real Estate Contract Rider that must be included with a contract for that address - signed by the
homebuyer and dated same as Real Estate Contract.
Pre-Purchase/Contract Requirements in order to obtain Kane County deferred loan commitment:
1) Homebuyers must complete homebuyer counseling from a HUD certified counselor/agency prior to
submitting a purchase contract. Failure to complete this step prior to entering into a contract will
make the project ineligible for First-Time Homebuyer Loan funding.
2) Before executing a Real Estate Contract, homebuyers must provide their real estate agent the required
First-Time Homebuyer Loan Program Real Estate Contract Rider. The Rider will be provided to you by
Kane County after the property is determined to be located within the eligible Program Area. The First-
Time Homebuyer Loan Program Real Estate Contract Rider must be signed and dated by Buyer, and this
document must be attached to/submitted with the Buyer’s initial signed and dated offer/real estate
contract. The Buyer’s signature must be dated same on both documents. This means that the Buyer
must SIGN and DATE the Rider and submit it to the Seller as part of the signed and dated
offer/contract initially presented to the Seller. This also means that if the Buyer submits an offer to
purchase a property, but does not also present the Rider at the same time, the purchase will be
ineligible. Failure to include this Rider in the initial contract offer will make the project ineligible for
First-Time Homebuyer Loan funding.
3) Homebuyers must have a downpayment of at least 1% of the purchase price of the home they wish to
purchase (to be deposited as earnest money with contract).
4) Contract closing date must be at least 35 days or more from Contract execution date. The County has
timing constraints that require lead time, including completing the required inspections, obtaining title
company information, and registering title companies as “Vendors” with the County.
5) Copy of executed contract documents must be provided to the County via email to
within 24 hours following execution (at least 30 days in advance of closing
date). Please contact Karen Zilly if alternate delivery methods are requested, however a copy of the
contract must be delivered at least 34 days in advance of closing date.
County Property Inspection:
1) All homes, townhomes, and condominiums purchased under the program must pass both a general
inspection and a visual lead-based paint inspection conducted by a county examiner to ensure the home
meets housing quality standards.
2) The County will need to be granted access to the property to complete the following visual inspections
of the housing unit, for the purpose of documenting compliance with federal guidelines. These
inspections may/should occur during the inspection period negotiated within the real estate contract.
3) Visual Lead Inspection: As mandated by HUD’s Lead Regulation, effective September 15, 2000, any
housing purchased under a federally funded homebuyer program must be inspected for lead and any
potential hazards identified as a result of lead being found within a home. All homes built prior to 1978
are required to go through this process. The inspection involves a visual assessment. The home must be
free of peeling, flaking, and chipping paint on the interior and exterior. If such conditions are found, the
following steps must be completed before a closing can be scheduled.