The Federal Home Loan Bank of Chicago has committed an additional $17 million to its Downpayment Plus programs, increasing total funding for 2026 to $48 million.
The programs provide forgivable grants of up to $10,000 to eligible homebuyers in Illinois and Wisconsin.
Applicants must generally earn no more than 80% of their area’s median income and obtain mortgage financing through a participating FHLBank Chicago member institution.
The Downpayment Plus program works through banks, credit unions and other member financial institutions.
Downpayment Plus Advantage allows nonprofit mortgage providers, including Habitat for Humanity affiliates, to access funding through partnerships with FHLBank Chicago members.
The grants are applied at closing and can help cover down payments and closing costs. Because the assistance is forgivable, qualifying recipients may not have to repay it after meeting the program’s requirements.
During the first half of 2026, participating members distributed more than $19 million to support over 2,000 homebuyers.
Since launching the program in 1994, FHLBank Chicago has allocated more than $330 million in down payment assistance to more than 51,000 households.
A significant majority of those grants have supported first-time buyers.
KEY QUOTE:
“Down payment and closing costs remain real barriers for many households that are ready to buy a home.”
“By committing additional DPP funding, FHLBank Chicago is helping our members deliver direct, practical support to more homebuyers across Illinois and Wisconsin.”
Katie Naftzger, Senior Vice President and Community Investment Officer at FHLBank Chicago
