The Federal Home Loan Bank of Chicago (FHLBank Chicago) has launched its 2026 Downpayment Plus (DPP) and Downpayment Plus Advantage (DPP Advantage) grant programs, making $28 million available to help income-eligible homebuyers in Illinois and Wisconsin cover upfront costs that often prevent households from purchasing a home.
The programs provide forgivable down payment assistance to homebuyers earning up to 80% of the area median income. Eligible households can receive up to $10,000, applied at closing, through participating FHLBank Chicago member financial institutions.
FHLBank Chicago said the new funding round arrives as affordability pressures persist across the region, driven by elevated housing costs and constrained inventory, particularly for first-time buyers and low- to moderate-income households.
DPP grants are accessed directly through participating member institutions. DPP Advantage is designed for borrowers using nonprofit-led mortgage programs in Illinois and Wisconsin, where nonprofits partner with an FHLBank Chicago member to secure the grant funding.
FHLBank Chicago said that since 1994 through year-end 2024, it has allocated more than $300 million in Downpayment Plus funding to over 47,000 households, with the majority of grants supporting first-time homebuyers.
Member institutions continue to use the programs to address localized challenges, including in rural markets where wage growth is modest and housing supply is limited, the bank said. IncredibleBank, headquartered in Wausau, Wisconsin, cited the role of down payment assistance in helping borrowers overcome the largest barrier to purchase.
FHLBank Chicago encouraged member institutions and nonprofit partners to leverage the 2026 funding to expand access to homeownership and support community development across its district.
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“Down payment assistance continues to be a critical resource for addressing barriers to homeownership. By working alongside our members, the Downpayment Plus programs help individuals and families move from aspiration to action, even as affordability pressures persist across our region.”
Katie Naftzger, Senior Vice President and Community Investment Officer, FHLBank Chicago
“In many of the communities we serve, homeownership can actually be more affordable than renting — but the upfront costs are often the biggest hurdle. The Downpayment Plus program makes a real difference because it’s meaningful assistance and it’s easy to navigate. It allows us to meet people where they are and help them realize that buying a home is truly within reach.”
Carmen Schipferling, Home Lending Specialist, IncredibleBank
