Community Connections Home Buyer Assistance Program

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 Community Connections Home Buyer Assistance Program, which is designed to help its residents purchase their home by providing financial assistance for the down payment and closing costs.

Available Assistance
The Community Connections Home Buyer Assistance Program provides applicants with down payment and/or closing cost assistance in the form of a grant for up to 7% 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 cashback going to the applicant.

Eligibility Requirements
All applicants must meet certain requirements to be considered eligible for the Community Connections Home Buyer Assistance Program. Qualified borrowers must contribute $1,000 or 1% of the 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 Community Connections Home Buyer Assistance Program, applicants are permitted to buy single-family homes, townhomes, 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.