Downpayment Plus Programs | FHLBank Chicago

Open now, and available until funds are fully reserved, Downpayment Plus (DPP^®) and Downpayment Plus Advantage^® (DPP Advantage^®) offer Federal Home Loan Bank of Chicago members easy-to-access down payment and closing cost assistance to help their income-eligible customers achieve homeownership. These programs give our members:

The opportunity to maintain and expand their customer base
The ability to assist any eligible borrowers purchasing homes in the communities they serve—not just first-time homebuyers
Improved loan-to-value ratios
The flexibility to combine these programs with the MPF Xtra^®product or other secondary market programs

The 2026 Downpayment Plus^® Programs open on January 20 at 7 a.m. The program structure remains unchanged for 2026. Members are encouraged to register for an upcoming webinar for an overview of the program and key reminders for a successful year.

Are you a homebuyer? Please see the dropdown menu below for more information on the DPP Program.

Are you seeking a payoff quote or lien release? Please see the Contact menu below for more information.

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Downpayment Plus Program

Downpayment Plus

Downpayment Plus is a program that provides down payment and closing cost assistance for income-eligible homebuyers. The assistance is provided in the form of a forgivable grant paid on behalf of the borrower at the time the borrower closes on mortgage financing with a participating FHLBank Chicago member financial institution. Grants are forgiven on a monthly basis over a five-year retention period.

Downpayment Plus Advantage

Downpayment Plus Advantage is a similar program but assists income-eligible homebuyers participating in homeownership programs offered by nonprofit organizations that provide mortgage financing directly to the homebuyer. Nonprofit organizations providing direct first-mortgage financing, such as Habitat for Humanity or Neighborhood Housing Services, must partner with an FHLBank Chicago member financial institution to access DPP Advantage funds. Grants are forgiven on a monthly basis over a five-year retention period.

Program Elements

For DPP and DPP Advantage, the maximum grant amount is the lesser of: 1) $10,000; or 2) 25% of the first mortgage amount.
For DPP and DPP Advantage, the member limit is $1,000,000 on a first-come, first-served basis as long as funds are available.
Program beneficiaries are required to complete both pre-purchase homebuyer education and counseling. The education requirement must be delivered by a HUD-approved counseling agency or by an online provider approved by FHLBank Chicago. The counseling requirement must be delivered by a HUD-approved counseling agency.

Member and Borrower Roles and Responsibilities

Members:

Execute a DPP Program Agreement
Review FHLBank Chicago DPP Program Guide
Verify the borrower’s income in accordance with the DPP Income Calculation Guidelines
Submit a grant reservation through eBanking
Ensure the borrower completes both pre-purchase homebuyer education and counseling
Ensure the grant amount does not exceed the lesser of 1) $10,000; or 2) 25% of the first mortgage amount (DPP only)
Disburse grant funds at the closing of the first mortgage
Ensure the property is subject to a recorded retention agreement
Submit all pertinent documentation to FHLBank Chicago
Monitor the retention agreement

Borrowers:

Apply for first mortgage financing with a participating FHLBank Chicago member
Provide the executed purchase contract for the property
Provide evidence of household income
Complete both pre-purchase homebuyer education and counseling
Contribute a minimum of $1,000 toward the purchase transaction (DPP only)

Application and Eligibility

Members wishing to participate in the DPP programs must execute a Program Agreement with FHLBank Chicago.
Member institutions who provided DPP funds in the previous year, must submit an Annual Certification Form in DPP Online before making any new reservations of funds. Additionally, acquirers of (former) members with DPP grants within the 5 year retention period are required to complete the annual certification form.
The DPP programs are accessed through eBanking—FHLBank Chicago’s member-only website. The institution’s Member Security Administrator must authorize one or more individuals to conduct DPP transactions in eBanking.
A list of participating members is available under DPP Resources.
Reservations are on a first-come, first-served basis.
Property may be in any state in which the member does business.
For DPP, the member originates or funds the first mortgage. For DPP Advantage, a nonprofit originates or funds the first mortgage.

Are You a Homebuyer?

How does it work?

Contact a DPP Provider: DPP is offered by members of FHLBank Chicago. Homebuyers must apply and qualify for first mortgage financing through a DPP participating lender in order to access the DPP funds. Please contact a participating lender to inquire about access to the DPP program.
Apply: Your lender will collect applicable documentation and complete the DPP application process on your behalf.
Approval: FHLBank Chicago will work with your lender to review your application and eligibility. Your lender can answer any questions you may have about the DPP process.
Prepare: After your lender has confirmed your DPP grant reservation is in place, you will work with your lender to complete the required pre-purchase education and pre-purchase counseling through approved providers.
Purchase: DPP funds can be used to help with your down payment, closing costs, and/or up to $500 of your homebuyer education and counseling costs if they meet eligibility requirements. Talk to your lender to understand how DPP will work with your home purchase.

Contact

If you are a member of FHLBank Chicago and have questions related to the DPP programs, please contact FHLBank Chicago Community Investment at 312-565-5824, Option 1, or dpp@fhlbc.com.

Are you a homebuyer? Please contact a participating lender to inquire about the DPP grant.

Are you a title company or attorney seeking a payoff or release of lien? Please reach out to the member institution listed on the retention agreement as the member institution who issued the DPP grant is solely responsible for the servicing. If you need additional assistance, please contact dpp@fhlbc.com.