Downpayment Plus: Up to $10,000 From FHLBank Chicago for Chicago Home Buyers (2026)

Published by Joe Bjorklund, Broker, Baird & Warner

FHLBank Chicago’s Downpayment Plus program gives eligible Chicago home buyers a forgivable grant of up to $10,000 toward the down payment and closing costs, through participating banks and credit unions, for households earning up to 80% of area median income.

Last reviewed October 17, 2026 · Chicago First Time Home Buyer editorial team

To see whether Downpayment Plus can be combined with HomeGrown or Cook County help for your income and price, use the down payment assistance calculator.

Downpayment Plus at a glance

Run by	Federal Home Loan Bank of Chicago (FHLBank Chicago), through its member banks and credit unions
Grant	The lesser of $10,000 or 25% of the first mortgage amount
Type	Forgivable grant, forgiven month by month over 5 years
Income limit	80% of area median income: $97,200 for a household of four in Cook County (effective May 1, 2026)
First-time buyers only?	No
Your own money	At least $1,000 (gifts do not count)
Education	Pre-purchase homebuyer education and counseling, both before closing
Property	1- or 2-unit home, condo or townhome you will live in as your primary residence
2026 funding	$48 million, reserved first-come, first-served while funds remain
Apply through	A participating FHLBank Chicago member lender

Who qualifies for Downpayment Plus in Chicago

Your household income must be at or below 80% of the HUD area median income for your household size. Income from every household member age 18 or older counts. The program is not limited to first-time buyers, but it is for purchases only, and the home must be your primary residence. Co-signers, guarantors and co-borrowers who will not live in the home are not allowed.

Cook County income limits used by FHLBank Chicago, effective May 1, 2026:

Household size	Income limit (80% AMI)
1	$68,050
2	$77,800
3	$87,500
4	$97,200
5	$105,000
6	$112,800
7	$120,550
8	$128,350

Eligible homes are 1- or 2-unit properties (attached, detached or condo) and manufactured homes titled as real estate. A newly built home must be finished before closing. You must put in at least $1,000 of your own money; gifts from others do not count toward it.

What the grant can pay for

The grant can go toward the down payment, closing costs, escrows for taxes, insurance or assessments, an interest-rate buydown, repairs set up as part of the purchase, and up to $500 of homebuyer education and counseling costs. It cannot pay off other debts or cover the seller’s taxes or utilities. You can receive no more than $250 back at closing; anything above that goes toward paying down your first mortgage.

How the grant is forgiven

The grant comes with a 5-year (60-month) retention agreement. One-sixtieth is forgiven for each full month you own the home. If you sell or refinance within 5 years, you repay the part not yet forgiven, out of the net proceeds. You owe nothing if the amount due is $2,500 or less, if you sell to a buyer at or below 80% of area median income, or if you refinance and the home stays under a retention agreement.

Is Downpayment Plus still available in 2026?

FHLBank Chicago opened the 2026 round on January 20, 2026 with $28 million, said on June 11, 2026 that $31 million had been made available, and added $17 million on July 28, 2026, bringing the year’s total to $48 million. As of October 17, 2026, its program page still says funds are reserved first-come, first-served while they remain. Each lender can reserve at most $1 million, so one lender can run out while others still have funds. The program ends when funds are fully reserved or on the last business day of December, whichever comes first. Ask your lender to confirm it can still reserve a grant before you count on it.

How to apply

Find a participating lender. FHLBank Chicago publishes the list on its Downpayment Plus page. You cannot apply to FHLBank directly.
Complete pre-purchase homebuyer education and counseling. Counseling must come from a HUD-approved agency. See where to take homebuyer education in Chicago.
Once you have a signed purchase contract and a mortgage application, the lender reserves the grant for you.
The grant is applied at closing.

FHLBank Chicago’s program contact is dpp@fhlbc.com or 312-565-5824.

Using Downpayment Plus with HomeGrown or IHDAccess Home

FHLBank Chicago allows Downpayment Plus to be combined with federal, state and local grants and loans, as long as each program’s own rules and the mortgage investor allow it. The City’s HomeGrown program does not allow bond-funded assistance, but its administrator says other assistance can be layered if HomeGrown’s recapture agreement keeps its lien position. Downpayment Plus is not bond-funded; ask your lender to confirm the order of liens before counting on both. For IHDAccess Home, ask your lender whether IHDA’s rules allow it.

Common questions

Do I have to be a first-time buyer to get Downpayment Plus?

No. Downpayment Plus is not limited to first-time buyers. You must meet the income limit, buy a home you will live in, and use a participating lender.

How much is Downpayment Plus in 2026?

Up to $10,000, or 25% of your first mortgage amount if that is less. FHLBank Chicago says it may change the amount during the year.

Do I have to pay Downpayment Plus back?

Only if you sell or refinance within 5 years, and then only the part not yet forgiven. After 5 years of ownership you owe nothing.

Can a parent co-sign with me?

No. Co-signers, guarantors and co-borrowers who will not live in the home are not allowed with Downpayment Plus.

Compare Downpayment Plus with the other options on Chicago first-time home buyer programs, and see what it costs to buy a home in Chicago for the closing costs a grant can cover.

Sources

Cite this page: Chicago First Time Home Buyer, “Downpayment Plus: Up to $10,000 From FHLBank Chicago for Chicago Home Buyers,” reviewed October 17, 2026, chicagofirsttimehomebuyer.com/programs/downpayment-plus/.