Illinois homebuyers can access student debt relief through SmartBuy program

SPRINGFIELD (WGEM) - SmartBuy is back.

The popular program returns as part of an initiative from Illinois Gov. JB Pritzker (D) to expand access to affordable housing across the state.

“The program provides affordable fixed-rate mortgages, closing cost assistance and up to $40,000 per household in student loan relief to borrowers who buy a home here in Illinois,” Pritzker said at a press conference announcing the initiative Dec. 11.

He said when SmartBuy first launched in 2020, 631 individuals and families bought new homes using SmartBuy. The state helped people pay down more than $17 million in student debt.

People who use the program will also receive $5,000 in deferred down payment and/or closing cost assistance.

“It’s a very safe affordable program administered by the State of Illinois, and we, as the lender, help you achieve that program,” said Wintrust Mortgage Senior Mortgage Consultant Jason Accola.

The program is open to first-time and repeat homebuyers. Eligible applicants must have at least $1,000 and no more than $40,000 in student debt. The state will pay off participants' student loans in full. Partial repayment is not an option.

“Student loan payments are really one thing that eats up a lot of people’s qualifying in order to buy a home. The great thing about this program is that it allows us to basically eliminate that monthly debt, so now you qualify without having that burden of student loan payments,” Accola said.

He said participants need to work with a mortgage lender approved by the Illinois Housing Development Authority (IDHA) to access the program. They’ll work with IDHA and take care of the behind-the-scenes paperwork to get people approved.

Accola said the program is a chance to take student debt and turn it into housing payments.

“It’s basically a two-for-one. People can get out of student loan debt and they can buy their new dream home,” he said.

In addition to relaunching SmartBuy, Pritzker signed an executive order creating a new position within his administration, the Illinois Director of Housing Solutions. That person will work with state agencies to create and implement innovative solutions to increase the number of attainable middle-class homes and rental options across the state.