Chicago First-Time Homebuyers: Mortgage Grants Available Now

Becoming a first-time homebuyer in Chicago can feel out of reach when saving for a down payment and closing costs on top of rent. Fortunately, a mix of city, state, and federally-supported programs offer grants and forgivable loans designed specifically for households purchasing their first home in the Chicago area. Eligible buyers can stack multiple forms of assistance to reduce the up-front cash needed to close.

Building Neighborhoods and Affordable Homes Program

The City of Chicago's Department of Housing operates the Building Neighborhoods and Affordable Homes Program, which provides a forgivable grant of up to $60,000 to qualified buyers purchasing a newly built single-family home or two-flat in designated neighborhoods. The subsidy is structured as a second mortgage that is forgiven over a 10-year occupancy period, meaning the money does not have to be repaid so long as the buyer remains in the home. Income limits and property eligibility vary by program year and neighborhood.

IHDA Access Mortgage Programs

The Illinois Housing Development Authority (IHDA) administers the Access Forgivable, Access Deferred, and Access Repayable programs, which are available to first-time and repeat buyers across Cook County, including Chicago. Access Forgivable offers up to 4% of the purchase price (capped at $6,000) in down payment and closing cost assistance that is forgiven over 10 years. Access Deferred provides up to $7,500 as an interest-free loan repayable when the home is sold, refinanced, or paid off. Access Repayable offers up to $10,000 repaid over a 10-year amortized term. All three require use of an IHDA 30-year fixed-rate first mortgage and completion of an approved homebuyer education course.

Chicago Home Buyer Assistance Program

Through the Chicago Home Buyer Assistance Program, the city partners with approved lenders to offer up to 7% of the loan amount to cover down payment and closing costs. The assistance is forgiven if the borrower keeps the home as their primary residence for at least three years. There are no purchase price limits tied specifically to the city program, but standard conforming loan limits apply, and borrowers must meet income requirements tied to area median income (AMI).

Federal Home Loan Bank Chicago Downpayment Plus

The Federal Home Loan Bank of Chicago's Downpayment Plus (DPP) and DPP Advantage programs provide matching grants of up to $10,000 for down payment and closing cost assistance, with an additional counseling reimbursement available. Funds are distributed through participating member lenders on a first-come, first-served basis and are typically forgiven over a five-year retention period. Because the program funds can be exhausted quickly once released each year, prospective buyers are encouraged to connect with a participating lender early.

How to Apply

Most of these programs require buyers to work with an approved participating lender rather than applying directly. The City of Chicago and IHDA maintain online lists of participating lenders. HUD-approved housing counseling agencies serving Chicago, including Neighborhood Housing Services of Chicago and The Resurrection Project, can walk applicants through eligibility, credit preparation, and program stacking strategies at no cost.

What to Watch

Program funding levels, income limits, and benefit amounts are refreshed periodically and can change mid-year if appropriations are adjusted. Before making offers, buyers should confirm the current program terms with their lender or the relevant agency and make sure they have completed any required homebuyer education course, since certificates are typically valid for only one to two years.