More Down Payment Assistance Funds Available for Illinois and Wisconsin Homebuyers

Great news for aspiring homeowners in Illinois and Wisconsin! The Federal Home Loan Bank of Chicago (FHLBank Chicago) recently announced an additional $17 million commitment to its Downpayment Plus® (DPP) programs, bringing the total 2026 funding to a substantial $48 million. This significant boost aims to help more income-eligible homebuyers overcome one of the biggest hurdles to homeownership: upfront costs.

This expansion means that more individuals and families in these states will have access to forgivable grant assistance for down payments and closing costs, making the dream of owning a home a more tangible reality. It's a clear signal of continued commitment to supporting local communities and making homeownership more accessible.

What is the Downpayment Plus® Program?

The Downpayment Plus® and Downpayment Plus Advantage® programs, offered through FHLBank Chicago, provide forgivable grants to eligible homebuyers. These programs are designed to assist those earning up to 80% of the area median income, directly addressing the financial barriers that often prevent individuals from purchasing a home.

How Does the Assistance Work?

Through partnerships with member financial institutions, FHLBank Chicago’s programs offer grants of up to $10,000. To access these funds, eligible homebuyers secure their first mortgage financing through a participating member institution. The "forgivable" aspect of these grants is particularly beneficial, as it means that under certain conditions, you won't have to repay the assistance.

Why This is Good News for You

Increased Access to Homeownership: With an additional $17 million in funding, more grants are available, directly increasing the number of homebuyers who can receive assistance. This means a greater chance for you to qualify and receive support.
Reduced Upfront Costs: Down payments and closing costs can be significant financial burdens. These grants directly reduce those initial expenses, making it easier to save for and afford a home.
Forgivable Grants: The forgivable nature of these grants provides a significant financial advantage, potentially saving you thousands of dollars that would otherwise need to be repaid.
Support for Income-Eligible Buyers: The program specifically targets income-eligible homebuyers, ensuring that those who need assistance the most receive it.

What You Can Do Next

If you're an aspiring homebuyer in Illinois or Wisconsin, now is an excellent time to explore your options.

Contact a Participating Lender: Reach out to financial institutions that are members of FHLBank Chicago. They can provide detailed information on the Downpayment Plus® programs and help you determine your eligibility.
Understand Eligibility Requirements: Inquire about the specific income limits and other criteria for the grants. While the general guideline is up to 80% of the area median income, specific details may vary.
Get Pre-Approved: Getting pre-approved for a mortgage will give you a clear understanding of your buying power and streamline the application process for down payment assistance.

This increased funding is a positive development that can truly make a difference for many homebuyers in Illinois and Wisconsin. By leveraging these programs, you can take a significant step closer to achieving your homeownership goals.

Sources

businesswire.com

This article is for general educational purposes only and is not financial, legal, or tax advice, nor a commitment to lend. Rates, programs, and guidelines change and vary by borrower; figures are illustrative. Ur Mortgage is empowered by Nexa Mortgage LLC (NMLS #1660690), an Equal Housing Lender. Contact a licensed loan officer for guidance specific to your situation.