Downpayment Plus® (DPP®) and Downpayment Plus Advantage® (DPP Advantage®) offer FHLB Chicago members easy-to-access down payment and closing cost assistance programs for income-eligible homebuyers. Through these programs, FHLB Chicago members can assist their customers in achieving homeownership.
New for 2017!
The most significant change to DPP is that it is now a matching program. Under the new matching funds structure, members have the opportunity to serve even more homebuyers with DPP within the same member limit.
For DPP, the maximum grant amount is the lesser of $6,000 or three times the homebuyer’s net contribution.
Please reference the following table to understand what this looks like for your customers:
|Homebuyer's Net Contribution||Maximum Grant Amount|
The table is an illustrative example and is not intended to suggest the grant is only awarded in three amounts. “Homebuyer’s net contribution” is defined as the homebuyer’s gross contribution minus any cash back at closing.
For DPP Advantage, the maximum grant amount remains at $6,000.
Downpayment Plus (DPP) is a matching program that provides down payment and closing cost assistance for income-eligible homebuyers. FHLB Chicago members enrolled in the DPP Program may access subsidies of up to $6,000 per household on behalf of eligible homebuyers to whom they are funding or originating first mortgages. The subsidy may be used for down payment and closing cost assistance, homebuyer counseling costs (up to $700), and/or eligible rehabilitation costs associated with the purchase of a home. Household income and other restrictions apply. Please see the Program Policy and Forms
page for more information.
Downpayment Plus Advantage
The DPP Advantage Program is designed for households participating in
homeownership programs offered by nonprofit organizations that provide mortgage financing directly to the homebuyer; it is not a matching program. The nonprofit organizations must partner with an FHLB Chicago member to access the DPP Advantage Program.
FHLB Chicago members enrolled in the DPP Advantage Program may access subsidies up to $6,000 per household on behalf of eligible homebuyers. Like the DPP Program, the DPP Advantage subsidy may be used for down payment and closing cost assistance, financial literacy, and homebuyer counseling costs (up to $700), and/or eligible rehabilitation costs associated with the purchase of a home.
Repayment of Subsidy
Under certain circumstances, grant recipients may be required to repay a portion of the DPP subsidies to the FHLB Chicago. Checks should be made payable to the FHLB Chicago, and mailed with a completed repayment worksheet
to the following address:
Federal Home Loan Bank of Chicago
Community Investment Group
200 East Randolph Drive
Chicago, IL 60601