The Federal Home Loan Bank of Chicago (FHLB Chicago) is a wholesale bank, or simply put, a bank for banks. Owned by more than 800 financial institutions headquartered in Illinois and Wisconsin, the FHLB Chicago provides access to low-cost funding and other services that help member financial institutions make home mortgages and provide credit that supports neighborhoods and communities. As a wholesale bank, we do not provide retail services, such as mortgages, to consumers. The FHLB Chicago offers several grant programs to assist in the creation and preservation of affordable owner occupied and rental housing for very low-to moderate-income families and individuals. These programs, which can be accessed through FHLB Chicago members and community based organizations that have partnered with members, include:

Downpayment Plus® (DPP®)
FHLB Chicago members enrolled in the DPP® Program may access subsidies of up to $4,000 per household on behalf of eligible homebuyers to whom they are providing first mortgages. The subsidy may be used for downpayment and closing cost assistance, homebuyer counseling costs (up to $600), and/or rehabilitation costs associated with the purchase of a home. The DPP subsidy will be provided by the member at the closing.
Eligible Households
• Total household income may not exceed 80% of the area median income (based on income guidelines published annually by HUD) • Homebuyer(s) must contribute at least $750 toward the home purchase. • Homebuyer(s) must complete a pre-purchase homebuyer or homeowner counseling program, which provides a comprehensive financial literacy component including information alerting borrowers to practices characteristic of predatory lending. • Homebuyer(s) must use the home as their primary residence. • Homebuyer(s) must sign a 5-year retention agreement and agree to a lien on the property for the amount of the DPP subsidy. DPP subsidies are forgiven over a period of 5 years (1/60th per full month). In the event of property sale or removal of the AHP lien prior to the end of the 5-year retention period, the homebuyer(s) must repay a pro rata portion of the subsidy. For further information on the DPP Program, review the Downpayment Plus Program Frequently Asked Questions (.pdf). To find out if you are eligible for a DPP subsidy, contact a participating FHLB Chicago member in Illinois or Wisconsin.
Downpayment Plus Advantage® (DPP Advantage®)
The DPP Advantage® Program is an offshoot of the FHLB Chicago's DPP Program (see above.) The program provides assistance to homebuyers receiving mortgage financing through a non-profit organization, such as Habitat for Humanity. The non-profit organization works with a FHLB Chicago member to access the DPP Advantage subsidy. Like the DPP Program, FHLB Chicago members enrolled in the DPP Advantage Program may access subsidies of up to $4,000 per household on behalf of eligible homebuyers. The DPP Advantage subsidy may be used for downpayment and closing cost assistance, homebuyer counseling costs (up to $600), and/or rehabilitation costs associated with the purchase of a home. The subsidy will be provided by the member at the closing. To find out if you are eligible for a DPP Advantage subsidy, contact a participating FHLB Chicago member in Illinois or Wisconsin.
Eligible Households
• Total household income may not exceed 80% of the area median income (based on income guidelines published annually by HUD) • First mortgage financing must be provided by a non-profit organization that provides mortgage financing directly to the homebuyer. • Homebuyer(s) must complete a pre-purchase homebuyer or homeowner counseling program, which provides a comprehensive financial literacy component including information alerting borrowers to practices characteristic of predatory lending. • Homebuyer(s) must use the home as their primary residence. • Homebuyer(s) must sign a 5-year retention agreement and agree to a lien on the property for the amount of the DPP subsidy. DPP subsidies are forgiven over a period of 5 years (1/60th per month). In the event of property sale or removal of the AHP lien prior to the end of the 5-year retention period, the homebuyer must repay a pro rata portion of the subsidy. Check with the non-profit organization providing your mortgage financing to see if they have partnered with a FHLB Chicago member to participate in the DPP Advantage Program.
Affordable Housing Program
FHLB Chicago provides funds to FHLB Chicago members partnered with community organizations and public agencies to assist in the creation and preservation of affordable owner occupied and rental housing for very low-to moderate-income families and individuals. Consumers should contact sponsors that have recently received grants to learn more about available programs.
Predatory Lending
Pre-purchase homebuyer counseling is a component of our DPP and DPP Advantage Programs. Counseling requires comprehensive financial literacy education that covers the topic of predatory lending. Predatory lending is abusive and/or illegal lending practices by lenders, mortgage brokers, home improvement contractors, realtors, or appraisers that take advantage of unsuspecting borrowers. Predatory lenders offer unfair loans that exploit a borrower's lack of knowledge or they handle borrowers with deception, fraud, or high pressure sales approaches. To find out more about predatory lending, review our Predatory Lending Brochure. If you believe that you have been targeted by a predatory lender or that you have signed a predatory mortgage document, contact one of the following agencies: Illinois Department of Financial and Professional Regulation www.idfpr.com Division of Financial Institutions Chicago (312) 814-2000 Springfield (217) 782-2831 Office of Banks and Real Estate Chicago (877) 793-3470 Wisconsin Department of Financial Institutions www.wdfi.org Madison (608) 261-9555
Other Resources
Other resources that provide information about housing opportunities are: U.S. Department of Housing and Urban Development offers consumer information regarding homeownership assistance programs, rental and homebuying assistance programs and consumer workshops. They also offer a list of HUD approved housing counseling agencies. Illinois Housing Development Authority (IHDA) is an independent and self-supporting authority that relies on federal and state funding sources to create and preserve affordable housing in Illinois. It offers information about its mortgage financing and downpayment assistance for potential homeowners, financing alternatives for multifamily projects, and its Consolidated Plan, which lists funding projections for 2005-2009. Wisconsin Housing and Economic Development Authority (WHEDA) is an independent public body that provides low-interest loans, not just to families in search of affordable housing, but to small- and medium-sized businesses, farmers, and assisted living projects. Mortgage Bankers Association of America, a national membership association, offers homebuying tips, information about refinancing, detailed news on purchasing, owning and managing a home mortgage. Contact your county or city housing authority for additional information about affordable housing in your community.