What is the benefit of the Finally Home program to my financial institution?
There are a number of benefits to participation in the Finally Home program.  Finally Home allows you to close a higher volume of mortgage loans. The program provides your institution with a free five-year 10 percent guarantee on loans that, but for the guarantee, you would otherwise have to reject. Participation also counts toward helping your institution meet its CRA goals.

What types of institutions are eligible to become Finally Home participating lenders?
You are eligible to become a Finally Home participating lender if you are a bank depository, mortgage banker, savings and loan or a credit union.  You must be a direct lender, not a mortgage broker, and provide for the servicing of the loans. 

How does the Finally Home guarantee work?
Upon approval of a Finally Home application, the guaranteed amount is earmarked in the State Treasurer’s Loan Loss Reserve Fund. Should you need to foreclose on a borrower’s property within the first five years of the loan, you simply notify our office of the intent to do so.  Although our ultimate goal is to prevent the foreclosure, if the borrower’s situation cannot be resolved and you need to eventually foreclose on the property, the State Treasurer’s Office will reimburse you for your realized losses up to the amount guaranteed. The reimbursement can be used for any losses realized up to the amount guaranteed, including those associated with the foreclosure process, such as legal, administrative, resale, etc.

Is there any cost to my financial institution or to my customer?
No. Finally Home is a free guarantee provided to participating Illinois financial institutions and Illinois homebuyers and homeowners.  You cannot charge any additional fee for loans done with the Finally Home guarantee simply because they include the guarantee.

Will I be obligated to use the program or close a certain number of loans?
No. Whether or not you use the program is entirely up to you. We will never require you to approve a loan or a certain volume of loans.

Does the applicant need to be a first-time homebuyer?
No.

How may I incorporate Finally Home into my institution’s mortgage lending practices?
If you have a prospective borrower who is close to meeting your institution’s lending requirements but is not quite there -- because of credit score, debt-to-income ratios, insufficient trade lines or some other factor that is prohibiting the financing of a prospective borrower -- you can use the program’s guarantee to overcome the obstacle and approve the mortgage.

May our institution create a loan product of our own that incorporates the 10 percent guarantee offered through the Finally Home program?
Yes.  Numerous lenders have already done so.  You may create a specific loan product provided that it offers a benefit to Illinois consumers that, but for the 10 percent guarantee, would otherwise not be available through your institution. 

May the program’s 10 percent guarantee be used in place of PMI?
Yes. The 10 percent guarantee may be used in place of PMI if:

1. The lender does not offer PMI; or 
2. The lender does offer PMI but the borrower does not qualify for PMI.

May the 10 percent guarantee be used to decrease the coverage required by PMI?

No  Please email us at finallyhome@treasurer.state.il.us if you need further information or clarification.

May I also use the program to refinance an existing mortgage?
Yes. Please refer to the program guidelines for the list of specific circumstances where the Treasurer’s guarantee may be used to refinance an existing mortgage.  The borrower must also be able to demonstrate that he or she can continue or resume making mortgage payments.  Your lending institution will make the final determination, using the program guidelines and any underwriting guidelines used by your institution,  as to whether the borrower demonstrates the reasonable ability to repay the loan. 

May I use the program to perform a loan modification?
Yes. The homeowner must meet the same criteria as those used for refinancing loans.

May we make a second mortgage through the Finally Home program?
No. Currently, all loans guaranteed through the Finally Home program must be on a first mortgage.  You may not split the mortgage into a first and second mortgage and just obtain the guarantee on the first.  You may, however, take a current homeowner who has a first and a second mortgage and consolidate the two mortgages into one, provided that the second mortgage consists of mortgage related debt. 

May we use the program to refinance a mortgage and include other non-mortgage related debt into the loan?
No.  Non-related mortgage debt, such as credit card and automobile payments, may not be included in the loan at this time.  You may, however, include any arrearage when performing a refinance or loan modification that is mortgage related, such as past due loan payments and fees. 

May we use the program on a loan that contemplates financing more than the purchase price of a home to, for example, allow a potential borrower to rehab or renovate the property?
At the present time, the Treasurer has placed a moratorium on guaranteeing program loans that include renovation work.  However, the guarantee may be used for the portion of a home loan that reflects only the purchase price of the home, and your institution may consider extending additional loan amounts – not covered by the guarantee -- to finance renovation work.

Does the value of the guarantee depreciate as mortgage payments are made by the borrower?
No. The value of the guarantee remains the same throughout the five-year guarantee.

May our institution use the Finally Home guarantee more then once for the same individual?
As long as the borrower can independently qualify each time, your institution may use the guarantee more than once for the same person.

When must we notify you of the intent to foreclosure on a guaranteed loan?
If your institution determines that a loan is subject to foreclosure, you must notify the Program’s Bank Administrator of the intent to initiate foreclosure proceedings contemporaneously with your notification to the borrower.

What is the process for reporting to your Office of the intent to foreclose on a loan?
You must notify the Bank Administrator of your intent to foreclose by providing the application number, the number of days that the borrower is currently past due, the date that the last payment was received, any relevant information about the status of the loan (i.e., if a loan officer is currently working on a repayment plan with the borrower), and your contact information.

If I realize a loss on an Finally Home guaranteed mortgage, what is the process for reimbursement?
Simply mail or fax proof of the realized loss to the program’s Bank Administrator, which will verify the information with the Treasurer’s Office.  When the verification of the realized loss is complete, a check will be issued to your institution for reimbursement of your realized losses up to the amount of the guarantee.

associated with the foreclosure process, such as legal, administrative, resale, etc.