Think you need 20 percent down to buy in Chicagoland? Many buyers secure thousands in help they never have to repay. If you are saving for a home, the right program can bridge your down payment or cover closing costs so you can move sooner with confidence. In this guide, you will see the top assistance programs, what they offer, who qualifies, and the exact steps to apply. Let’s dive in.
What down payment assistance is
Down payment assistance, or DPA, is money that helps cover your down payment, closing costs, or interest rate buydown. It can be a forgivable grant, a deferred loan repaid later, or an interest‑free loan with monthly payments. Most programs require you to live in the home as your primary residence for a set period and work with an approved lender.
Top Chicagoland programs
IHDA Access programs (statewide)
The Illinois Housing Development Authority (IHDA) offers three core options that attach to an IHDA‑approved mortgage:
- Access Forgivable: up to 4 percent of the purchase price, max $6,000, forgiven over time.
- Access Deferred: up to 5 percent, max $7,500, deferred until you sell or refinance.
- Access Repayable: up to 10 percent, max $10,000, interest‑free over 10 years. Learn more and see lender requirements on the IHDA “Getting an IHDA Loan” page. IHDA outlines program features and eligibility.
FHLBank Chicago Downpayment Plus grants
Participating banks and credit unions offer forgivable grants, typically up to $10,000, for income‑eligible buyers, often at or below 80 percent of Area Median Income. Annual funding levels can change, and member caps apply. See the Federal Home Loan Bank’s latest program announcement for scope and availability. FHLBank Chicago details current DPP funding.
Cook County Down Payment Assistance
Cook County’s program has provided a subsidy equal to 5 percent of the sale price up to $25,000 as a forgivable second loan for down payment, closing costs, or an interest rate buydown. General eligibility reaches up to 120 percent of AMI, with special provisions in targeted census tracts. Funding opens in phases, so always check status. Review Cook County’s program page for current details.
Chicago Housing Authority (CHA) assistance
CHA offers purchase assistance to qualified buyers. Recent program descriptions show up to $20,000 for CHA participants and up to $10,000 for eligible non‑CHA buyers. Grants are forgivable after a residency period, and homebuyer education and approved lenders are required. Availability can change, so confirm the latest status on the CHA Down Payment Assistance page.
City of Chicago initiatives
The City periodically supports targeted new‑construction homeownership with larger assistance tied to specific developments or census tracts. These can include appraisal gap or purchase assistance that may reach tens of thousands of dollars with occupancy and income rules. For context on how appraisal gap financing works, see this policy overview from Local Housing Solutions.
Suburban and municipal options
Many suburbs across Lake, Kane, DuPage, Will, and McHenry Counties offer first‑time buyer help when funding is available. Amounts and formats vary. Local nonprofits often help with intake and counseling. For example, HOME DuPage supports buyers countywide through education and connected programs. Explore HOME DuPage to see local success stories and partners.
Who qualifies and what programs look for
Income and AMI limits
Most programs set caps based on Area Median Income. Typical thresholds include 80 percent AMI for some grants and 80 to 120 percent AMI for broader county or city programs. Always verify the county and household‑size limits for your target property. IHDA publishes county income and price limits.
First‑time buyer rules
Many programs define a first‑time buyer as someone who has not owned a home in the past three years. Some allow repeat buyers or have special tracks for public housing participants. Check the program’s definition and exceptions on its official page. See the CHA program overview for example definitions.
Credit and underwriting
Programs usually require an approved lender and minimum credit standards. IHDA lists a minimum 640 credit score for many Access options, though some lenders may require higher. Review the exact mortgage product rules with your loan officer. Details are on the IHDA program page.
Property type and occupancy
Assistance is for primary residences. Single‑family homes, condos, and townhomes are common, and some programs permit owner‑occupied 2 to 4 unit properties. Expect occupancy periods that tie to forgiveness schedules and recapture rules. The CHA page explains occupancy and forgiveness concepts.
Grant, deferred, or repayable
Assistance may be a forgivable grant, a deferred second repaid when you sell or refinance, or an interest‑free loan with set monthly payments. IHDA offers examples of each format. Compare IHDA Access options here.
Education and counseling
Most programs require an approved homebuyer education course before closing. Completing it early can prevent delays and strengthen your application. Local nonprofits, including NHS Chicago, support buyers and connect them to participating lenders. See NHS Chicago’s guidance for CHA buyers.
Combining programs
Some programs can be layered, while others cap total assistance or limit stacking with certain loans. Your lender must confirm what your mortgage product allows and what the program permits.
How to qualify: step by step
- Get preapproved with an approved lender
- Start with a lender that participates in the program you want. IHDA and CHA maintain approved lender lists or networks. Ask up front about DPA experience and timelines. Review IHDA’s program overview.
- Check eligibility before shopping
- Confirm household income against the program’s AMI chart, purchase price limits, property location, first‑time buyer status, and required classes. Use IHDA’s county income and price limits lookup.
- Complete homebuyer education early
- Finish the required class as soon as you can to avoid bottlenecks. Local agencies like NHS Chicago can help. See NHS Chicago’s resource page.
- Gather documentation
- Prepare ID, recent pay stubs, W‑2s, tax returns, bank statements, and any gift letters. Your lender and the program will provide the exact list.
- Apply when you are under contract
- Many programs need a signed purchase contract and a mortgage preapproval to submit the DPA application. Cook County uses partner intake portals during open phases. Check the Cook County program page for current intake steps.
- Stay on top of timing and funding
- DPA funds are limited and can run out quickly. Monitor “open or closed” status and coordinate closely with your lender and the program administrator. See Cook County’s funding updates in recent Board announcements.
Tips to maximize your assistance
- Apply early in the funding cycle and be ready with documents.
- Choose a lender experienced with your target DPA program.
- Ask about layering options that are permitted with your loan type.
- Understand forgiveness and recapture triggers before you sign.
- Consider using assistance for a rate buydown if allowed by the program.
A local partner by your side
You do not have to figure this out alone. Our team helps you match the right program to your budget, target neighborhoods, and timeline, then coordinates with your lender so your purchase stays on track. If you are buying in Lake County, northern Cook, or across Chicagoland, connect with Ivonne Payes to map your options and start your path to homeownership.
FAQs
Do Chicagoland down payment programs require first‑time buyer status?
- Many do, usually defined as no homeownership in the past three years, but some allow repeat buyers or have special tracks, as outlined in the CHA program details.
How much assistance can you get in Chicagoland?
- Examples include $6,000 to $10,000 from IHDA Access options, up to $10,000 from FHLBank DPP, and up to $25,000 from Cook County’s program, subject to each program’s rules and funding status.
What credit score do you need for IHDA assistance?
- IHDA lists a minimum 640 credit score for many Access programs, though lenders may require higher standards; verify with your loan officer and the IHDA program page.
Can you combine down payment assistance with FHA, VA, or conventional loans?
- Often yes, but it depends on the program and the mortgage product; confirm compatibility with your lender and the program administrator using guidance on the IHDA site.
Do you have to repay down payment assistance in Chicago or the suburbs?
- It depends on the format: grants are often forgivable after a residency period, deferred loans are repaid at sale or refinance, and some loans are interest‑free with monthly payments; review terms on each program’s official page.
How long does it take to get assistance funds approved?
- Timelines vary by program and lender; because funding pools can close quickly, complete education early, submit a full application, and watch the program’s “open or closed” status, such as Cook County’s updates.
