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What is the Downpayment Plus (DPP) Program?
The Downpayment Plus (DPP) Program provides up to $10,000 in down payment and closing cost assistance for income-eligible homebuyers of less than or equal to 80% of HUD area median income (AMI). FHLBank Chicago provides assistance in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on first mortgage financing with a participating member financial institution.
How can I qualify for DPP as a homebuyer?
Homebuyers must meet income eligibility requirements and must:
Contribute a net minimum of $1,000 from their own funds toward the purchase transaction
Complete pre-purchase homebuyer education and counseling
Live in the home as your primary residence
How do I get started?
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 program. View a list of participating lenders here.
Apply: Your lender will collect applicable documentation and complete the DPP application process on your behalf.
Approval: FHLBank Chicago will work with your lender to review your application and eligibility. Your lender can answer any questions you may have about the DPP process.
Prepare: 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.
Purchase: 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.
Questions?
Visit our DPP webpage for additional information and reach out to a participating lender if you have questions.
