Downpayment Plus Grant Program is sponsored by Federal Home Loan Bank of Chicago. Provides forgivable grants to income-eligible homebuyers for down payments, available through participating financial institutions.

Downpayment Plus® Program | FHLBC Downpayment Plus® Programs Downpayment Plus (DPP®) and Downpayment Plus Advantage® (DPP Advantage®) offer Federal Home Loan Bank of Chicago members easy-to-access down payment and closing cost assistance to help their income-eligible customers achieve homeownership. 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.

Downpayment Plus Advantage Downpayment Plus Advantage is a similar program but assists income-eligible homebuyers participating in homeownership programs offered by nonprofit organizations that provide mortgage financing directly to the homebuyer.

Nonprofit organizations providing direct first-mortgage financing, such as Habitat for Humanity, must partner with an FHLBank Chicago member financial institution to access DPP Advantage funds. Grants are forgiven on a monthly basis over a five-year retention period. How Downpayment Plus Works At FHLBank Chicago, we empower local institutions to drive meaningful change.

Our commitment to community investment fuels growth and opportunity. Explore our impact stories to see how we support mortgage lending and enhance community development. Participating members deliver the Downpayment Plus program, offering forgivable grants to help income-eligible homebuyers with down payment and closing costs.

Through the Downpayment Plus Advantage program, members also partner with nonprofit organizations in Illinois and Wisconsin that provide first mortgage financing directly to homebuyers. Downpayment Plus programs provide down payment and closing cost assistance through participating lenders. If you’re buying a home, contact a participating member to learn about eligibility and how to apply.

Find a Participating Lender This program is designed to help you improve housing affordability in your community or support your homebuyer clients. The Downpayment Plus programs provide forgivable grants to help income-eligible homebuyers with down payment and closing costs. Funds are provided through participating members to support affordable and sustainable homeownership in Illinois and Wisconsin.

Through the Downpayment Plus Advantage program, members can also partner with nonprofit mortgage lenders to extend assistance to homebuyers served by those organizations. Together, these programs help strengthen local communities by expanding access to homeownership opportunities for low- and moderate-income households.

Members participating in the Downpayment Plus programs must: Execute a DPP Program Agreement and review the DPP Program Guide. Verify household income in accordance with DPP Income Calculation Guidelines. Reserve funds through eBanking.

Ensure the borrower completes both pre-purchase homebuyer education and counseling. Disburse the grant at the time of the first mortgage closing. Record a retention agreement on the property.

Submit required documentation to FHLBank Chicago and monitor compliance during the five-year retention period. Working with Non-Profit Lenders Working with Non-Profit Lenders Members may also partner with nonprofit organizations that provide first mortgage financing directly to homebuyers through the Downpayment Plus Advantage program.

To participate, the nonprofit must originate or fund the first mortgage, and the partnering member must submit the reservation request in eBanking. DPP Advantage grants are forgiven on a monthly basis over a five-year retention period. Nonprofits such as Habitat for Humanity may qualify under this structure when partnering with a member institution.

Application & Eligibility Application & Eligibility Members participating in the Downpayment Plus programs must execute a Program Agreement with FHLBank Chicago before reserving funds. Program reservations are made through eBanking, FHLBank Chicago’s member-only website. Institutions that provided DPP funds in the previous year must complete the Annual Certification Form in DPP Online before making new reservations.

Eligible households must have annualized incomes at or below 80% of the area median income, and the maximum grant amount is the lesser of $10,000 or 25% of the first mortgage amount. Reservations are available on a first-come, first-served basis while funds remain. The Downpayment Plus programs provide forgivable grants to help income-eligible homebuyers with down payment and closing costs.

Funds are provided through participating members to support affordable and sustainable homeownership in Illinois and Wisconsin. Through the Downpayment Plus Advantage program, members can also partner with nonprofit mortgage lenders to extend assistance to homebuyers served by those organizations.

Together, these programs help strengthen local communities by expanding access to homeownership opportunities for low- and moderate-income households. Members participating in the Downpayment Plus programs must: Execute a DPP Program Agreement and review the DPP Program Guide. Verify household income in accordance with DPP Income Calculation Guidelines.

Reserve funds through eBanking. Ensure the borrower completes both pre-purchase homebuyer education and counseling. Disburse the grant at the time of the first mortgage closing.

Record a retention agreement on the property. Submit required documentation to FHLBank Chicago and monitor compliance during the five-year retention period. Working with Non-Profit Lenders Members may also partner with nonprofit organizations that provide first mortgage financing directly to homebuyers through the Downpayment Plus Advantage program.

To participate, the nonprofit must originate or fund the first mortgage, and the partnering member must submit the reservation request in eBanking. DPP Advantage grants are forgiven on a monthly basis over a five-year retention period. Nonprofits such as Habitat for Humanity may qualify under this structure when partnering with a member institution.

Application & Eligibility Members participating in the Downpayment Plus programs must execute a Program Agreement with FHLBank Chicago before reserving funds. Program reservations are made through eBanking, FHLBank Chicago’s member-only website. Institutions that provided DPP funds in the previous year must complete the Annual Certification Form in DPP Online before making new reservations.

Eligible households must have annualized incomes at or below 80% of the area median income, and the maximum grant amount is the lesser of $10,000 or 25% of the first mortgage amount. Reservations are available on a first-come, first-served basis while funds remain. Thank you for your interest in the DPP grant.

How does it work? Contact a DPP Provider: DPP is offered by members of FHLBank Chicago. Homebuyers must apply and qualify for first mortgage financing through a DPP participating lender in order to access the DPP funds.

Please contact a participating lender to inquire about access to the DPP See Participating Lenders Your lender will collect applicable documentation and complete the DPP application process on your behalf. FHLBank Chicago will work with your lender to review your application and eligibility.

Your lender can answer any questions you may have about After your lender has confirmed your DPP grant reservation is in place, you will work with your lender to complete the required pre-purchase education and pre-purchase counseling through approved providers.

View Requirements & Options DPP funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if they meet eligibility requirements. Talk to your lender to understand how DPP will work with your home purchase.

Borrower Responsibilities 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) DPP Program Marketing Resources Community First® Housing Counseling Resource Program Award List DPP Program Policy and Forms DPP Annual Certification Form for Out-of-District Members DPP Homebuyer Education and Counseling DPP Online Guide for Members DPP® Program Video Guides and Tutorials Watch these videos to learn more about the Downpayment Plus Program® (DPP®).

2026 Downpayment Plus Programs Webinar How to Participate in DPP and DPP Advantage How to Make a Reservation How to Use the Income Calculation Workbook How to Request a Disbursement How to Use the Repayment Worksheet How to Submit a Repayment Role Overview for DPP Administrator Find answers to your most pressing questions about member resources here. Can you combine DPP with other grant programs?

Yes, DPP may be combined with federal, state, and local grants or loans. The member is responsible for ensuring all guidelines are followed for any programs that are used. Please confirm with your investor or any other program provider that they would allow the DPP grant to be layered with their funds in the transaction.

How do I find HUD-approved homebuyer and education programs? All homebuyers accessing the DPP or DPP Advantage are required to complete both pre-purchase homebuyer education and pre-purchase counseling. We encourage all borrowers to participate in homeownership education, however, certificates of completion are only required for one of the borrowers.

Both pre-purchase education and prepurchase counseling are required. Please refer to FHLBank Chicago’s website for more information. What mortgage products do DPP Programs allow?

Lenders use a wide range of mortgage programs including HUD Section 184, FHA, VA, Rural Development, or state housing agency (e.g., IHDA or WHEDA) first mortgage products. Members should check with the secondary market investor/guarantor as to its requirements for purchasing first mortgage loans where there is a recorded retention agreement on the property from a down payment assistance subsidy.

Members must follow both DPP guidelines and the first mortgage lender/investor/guarantor guidelines. Interest-only first mortgages are ineligible for the DPP Program. The loan term must be a minimum of five years.

On adjustable-rate mortgages, the initial interest rate lock period must be a minimum of five years. What is the difference between DPP and DPP Advantage? DPP 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.

DPP Advantage is a similar program but assists income-eligible homebuyers participating in homeownership programs offered by nonprofit organizations that are not shareholder members of FHLBank Chicago. These organizations provide mortgage financing directly to the homebuyer.

Non-profit organizations providing direct first mortgage financing, such as Habitat for Humanity, must partner with a participating FHLBank Chicago member financial institution in order to access DPP Advantage. DPP Advantage requires no homebuyer contribution. How can I participate in Downpayment Plus ® (DPP®) and Downpayment Plus Advantage® (DPP Advantage®)?

Members wishing to participate in the DPP Programs must execute a Program Agreement with FHLBank Chicago. In addition, Member institutions who provided DPP funds in the previous year must complete an Annual Certification Form inside the new DPP Online system.