Downpayment Plus is a program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on mortgage financing with a participating FHLBank Chicago member financial institution. Grants are forgiven on a monthly basis over a five-year retention period.

 

Program Elements

For Downpayment Plus, the maximum grant is the lesser of:

• $6,000, or
• 25% of the first mortgage amount.

For Downpayment Plus Advantage, the maximum grant amount is $6,000.

Program beneficiaries are required to complete both pre-purchase homebuyer education and counseling. The education requirement must be delivered by a HUD-approved counseling agency or by an online provider approved by FHLBank Chicago. The counseling requirement must be delivered by a HUD-approved counseling agency.

 

Borrowers

• Apply for first mortgage financing with a participating FHLBank Chicago member
• Provide the executed purchase contract for the property
• Provide evidence of household income
• Complete both pre-purchase homebuyer education and counseling
• Contribute a minimum of $1,000 toward the purchase transaction (DPP only)

For more information, please visit FHLBank Chicago's  Downpayment Plus page.