First-time homebuyers in the Chicago area got a boost when Freddie Mac and Rocket Mortgage expanded two separate grant programs into the metropolitan market. The programs, which are run independently but complement each other, target down payment and closing-cost barriers that keep many working families out of homeownership.

Freddie Mac BorrowSmart Access

Freddie Mac's BorrowSmart Access program extends a $3,000 grant toward a down payment on a single-family home or two-flat for first-time buyers in several designated U.S. metro areas, including Chicago. Buyers earning 50% or less of the area median income can qualify for an additional $2,500 grant, which brings total help up to $5,500 for the lowest-income participants. Funds can be used for down payment and closing costs.

BorrowSmart Access is paired with Freddie Mac's Home Possible loan, a conventional mortgage designed for very low- to low-income borrowers. That pairing lets qualified buyers combine a low down payment mortgage with grant funds so that less out-of-pocket cash is required at closing. A homeownership education course is usually required.

Rocket Mortgage Purchase Plus

Rocket Mortgage launched a program called Purchase Plus aimed at first-time buyers in a set of U.S. cities that includes Chicago. The program offers up to $7,500 in credits that can be used toward mortgage costs such as closing costs, origination fees, or a rate buy-down. The credit is structured as a lender credit, meaning it reduces what the buyer needs to bring to closing.

Purchase Plus targets neighborhoods that have historically seen lower rates of homeownership. Eligibility is tied to the property's census tract and to income, so buyers interested in the program need to check whether a specific home qualifies before proceeding.

Why Chicago

Chicago's homeownership rate has long lagged other major U.S. metros, particularly in majority-Black and majority-Hispanic neighborhoods on the city's South and West sides. Analyses by housing groups have tied that gap to a combination of income disparities, appraisal issues, and the long tail effects of historical redlining. Both Freddie Mac and Rocket Mortgage highlighted Chicago's underserved neighborhoods as a reason for extending these programs to the city.

The programs join an already active local assistance landscape. The Illinois Housing Development Authority offers statewide down payment help, and Neighborhood Housing Services of Chicago runs counseling and loan programs. The Chicago Housing Authority also offers a $10,000 down payment grant to eligible non-CHA buyers moving into or within Chicago.

Stacking Grants

One of the most important points for buyers is that these programs can often be used together, though the exact combination depends on the lender and the specific loan. A buyer might, for example, use Freddie Mac's BorrowSmart Access for a portion of the down payment, pair it with a Home Possible mortgage, and then add a city or state program on top. Some buyers can also layer employer-sponsored homebuyer assistance where available.

Before stacking, buyers should verify with their loan officer that all programs are permitted together. Some programs have restrictions on combining with other sources of assistance, and all of them require clean underwriting and an appraisal that supports the purchase price.

Eligibility Basics

Both programs require that the buyer be a first-time homebuyer, generally defined as someone who has not owned a primary residence in the last three years. Income limits apply and are tied to the area median income in the Chicago metropolitan statistical area. Credit, debt-to-income, and reserve requirements follow standard mortgage underwriting rules.

Borrowers must also complete an approved homebuyer education class. These classes cover budgeting, credit, mortgage basics, and the home-purchase process, and they are often offered online as well as in person by HUD-approved counseling agencies in the Chicago area.

How the Money Moves

With BorrowSmart Access, the $3,000 and additional $2,500 amounts are applied at closing as grant funds rather than loans, which means there is no repayment requirement. The Rocket Mortgage Purchase Plus credit is also structured so that the buyer does not pay it back, though it must be used at the time of origination on the specific loan.

Because the funds reduce the cash needed at closing, they can meaningfully shrink the savings hurdle. A buyer on a modest income may otherwise need years to save tens of thousands of dollars just to cover down payment and closing on a Chicago-area home.

Next Steps for Interested Buyers

Buyers interested in these grants should start by contacting a mortgage lender that participates in the relevant program. Rocket Mortgage runs Purchase Plus directly, while BorrowSmart Access is offered through a range of lenders that originate Freddie Mac loans. A HUD-approved housing counselor in Chicago can also walk buyers through the options, check eligibility, and coordinate with a lender.

Preparation helps. Buyers should pull their credit, gather two years of tax returns and recent pay stubs, and begin to build savings even as they apply for grant help. Stable employment and steady credit payments remain the foundation that makes any low-down-payment program work.

Final Thoughts

These programs will not close Chicago's homeownership gap by themselves, but for the right buyer in the right neighborhood, they can turn a home purchase from impossible into feasible. As with any grant program, funding is limited, so buyers who are ready to act should do so promptly.

Freddie Mac and Rocket Mortgage Extend Homebuyer Grants to Chicago