Chicago's City Council established the Chicago Home Buyer Assistance Program, which is designed to help its residents purchase their home by providing financial assistance for down payment and closing costs.

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Chicago Home Buyer Assistance Program

Financial Assistance for Homebuyers in Illinois

The City of Chicago recognizes that many first-time homebuyers need help paying initial, upfront costs in a mortgage transaction. That’s why the City Council established the Chicago Home Buyer Assistance Program, which is designed to help its residents purchase their home by providing financial assistance for down payment and closing costs.

Available Assistance
The Chicago Home Buyer Assistance Program provides applicants with down payment and/or closing cost assistance in the form of a grant for up to 7 percent of the total loan amount, based on income. Unlike most down payment assistance programs, this grant is not exclusive to first-time homebuyers. Anyone who meets the income and credit score requirements is eligible for the program. The funds can also be used to refinance a home, as long as there is no cash back going to the applicant.

Eligibility Requirements
All applicants must meet certain requirements to be considered eligible for the Chicago Home Buyer Assistance Program. Qualified borrowers must contribute $1,000 or 1 percent of home purchase price (whichever is lesser) from their own funds. The program is intended to assist a broad range of families that include middle- and low-income households, but there are income and credit score limits based on the type of first mortgage a borrower secures. FHA, VA, USDA loan borrowers must have an annual household income no higher than $88,435 (regardless of family size) and a minimum credit score of 580 to qualify, whereas Fannie Mae/Freddie Mac borrowers must have income less than $131,775 (regardless of family size), and a credit score no lower than 640.

Homebuyer Education
First-time homebuyers participating in the program must complete a homebuyer education course.

Property Guidelines
Under the Chicago Home Buyer Assistance Program, applicants are permitted to buy single-family homes, town homes, condominiums and owner-occupied properties containing up to four units.
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits. spacer

Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.

FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

Down Payment Grants in Illinois

1stHomeIllinois is designed to help first-time homebuyers and veterans purchase. In addition to a 30-year fixed rate mortgage, applicants can receive a $7,500 down payment assistance grant. 

Chicago's City Council established the Chicago Home Buyer Assistance Program, which is designed to help its residents purchase their home by providing financial assistance for down payment and closing costs.

Alton’s Homeownership Program was established to boost homeownership in the city by offering down payment and closing cost assistance to income-eligible homebuyers.

With their Downpayment Plus Programsthe Federal Home Loan Bank of Chicago offers its members easy-to-access down payment and closing cost assistance programs for low- and moderate-income homebuyers.

Madison County in Illinois aims to increase home ownership in the area with the HOMEbuyer Program. This provides funds for down payment and closing costs to eligible individuals who can afford monthly mortgage payments, but not the hefty, upfront costs.

The City of Joliet, Illinois established the Joliet Down Payment Assistance Program, which is designed to help low-income applicants with down payment assistance to purchase their home.

In an effort to help individuals achieve their dreams of homeownership, the Kane-Elgin HOME Consortium has funded the First-Time Homebuyer Program which comes with the Kane County Down Payment Assistance Program.

The Town of Normal, Illinois offers the Homebuyer’s Down Payment Assistance Program, which is funded by the Community Development Block Grant program and covers a portion of the down payment for eligible applicants.

The Village of Romeoville offers residents the Homebuyer Assistance Program, also known as the Assist Program. It provides potential homebuyers with the Mortgage Credit Certificate (MCC) program, as well as funds to pay all or most of their closing costs and the down payment.

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FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!