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On February 18, 2025, the Federal Home Loan Bank Chicago published a news post to announce the Downpayment Plus (DPP) grant programs have been renewed for 2025 with $46 Million available to support homebuyers in Wisconsin and Illinois.
Are you looking to buy a home this year but are worried about the downpayment or closing costs? The Downpayment Plus® (DPP®) grant program may be the answer for you!
What is Downpayment Plus (DPP)?
The Downpayment Plus program is a grant program offered by the Federal Home Loan Bank of Chicago (FHLBank Chicago). The DPP program provides downpayment and closing cost assistance in the form of forgivable grants to income-eligible homebuyers. Eligibility is determined by a potential homebuyers earnings and is based on the area median income.
The grant is paid on behalf of the borrower at the time of the mortgage closing, and it is forgiven on a monthly basis over a five-year retention period. The maximum grant amount is the lesser of $10,000 or 25% of the first mortgage amount.
How to Take Advantage of DPP?
The process can be broken down into five steps:
- Contact your local lender at National Exchange Bank & Trust.
- Work with your lender to apply for DPP. Items needed may include the executed purchase contract for the property, evidence of household income and a contribution of a minimum of $1,000 towards the purchase transaction.
- FHLBank Chicago will work with your lender to review your application and eligibility to work towards approval.
- Complete the required pre-purchase homebuyer education and counseling.
- Buy your home! Funds received can be used towards your downpayment, closing costs and/or up to $500 of your homebuyer education and counseling costs if they meet eligibility requirements.
If you believe the Downpayment Plus program could benefit you, reach out to your local lender to start the conversation today!
