All loans are exempt. A legally executed document is not required to verify that income is a loan. A statement signed by both parties is enough to verify the income is a loan, if it contains:
- the amount of the loan,
- that the payment is a loan, and
- that repayment is required.
Illinois Hardest Hit Fund (HHF)
The federal Hardest Hit Fund authorizes the United States Treasury Department to provide funds to the state Housing Finance Agency (HFA) to develop locally tailored mortgage foreclosure assistance programs. As part of the Hardest Hit program, the Illinois HFA offers five year forgivable loans with a lien being recorded against the property. The HHF assistance (loan) is excluded from income as meeting the definition of a loan. The SNAP household is allowed a shelter deduction as the mortgage is a continuing charge for the shelter occupied by the household.