The Federal Home Loan Bank of Chicago (FHLBank Chicago) has announced the launch of its Downpayment Plus (DPP) programs, which will be backed by $10 million in funding for the remainder of this year.
Eligible households can obtain up to $8,000 through a financial institution that is a member of the FHLBank Chicago and participates in the DPP programs. The subsidy may be used for down-payment and closing-cost assistance, homebuyer counseling costs or eligible rehabilitation costs associated with the purchase of a home.
Funds are available on a first-come, first-served basis until the allocation is exhausted. Each participating member institution can access $400,000 on behalf of their customers. Homebuyers must meet income eligibility requirements, occupy the home as their primary residence, and contribute at least $1,000 to the purchase of the home, as well as participate in homebuyer and financial literacy counseling.