Offered by the Federal Home Loan Bank of Chicago, there are two Down Payment Plus programs that borrowers can utilize for down payment and closing cost funds.
DPP, or Downpayment Plus Program, is a grant that matches the contribution from the borrower’s own funds using a 3:1 ratio, for up to $6,000 (or 25% of the first mortgage – whichever is less). For example, if borrower puts down $1,000, the grant will be in the amount of $3,000, and if the borrower puts down $2,000 or more, the grant will be in the amount of $6,000. These funds can be used for the down payment, closing costs, counseling costs (as much as $700), and certain rehabilitation costs.
Downpayment Plus Advantage Program varies slightly, in that it’s only meant for applicants who are working with a non-profit organization which is also a partner of the Federal Home Loan Bank of Chicago. The Downpayment Plus Advantage Program is also not required to follow the 3:1 ratio for matching, but still has the $6,000 (or 25% of the first mortgage) cap.
While these programs offer grants, the grants would need to be repaid in the event that the property is sold or refinanced within 5 years.
In order to qualify, applicants must fall within a total household annual income of less than 80% of the area median income. Income and employment status must be disclosed, and homebuying counseling is also required. The minimum amount that an applicant can contribute towards the home purchase is $1,000.
Only primary residences are eligible for these grants, and must be an attached or detached one- or two-unit home, condominium, or manufactured home.
Other programs in Illinois:
- HOMEbuyer Program
- Chicago Home Buyer Assistance Program
- City of Alton’s Homeownership Program
- Joliet Down Payment Assistance Program
- Kane County First-Time Homebuyer Program
- Normal Homebuyer’s Down Payment Assistance Program
- Romeoville Assist Program