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Consumer Information |
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The Chicago Federal Home Loan Bank (Chicago FHLB) is a wholesale bank, or simply
put, a bank for banks. Owned by approximately 900 financial institutions
headquartered in Illinois and Wisconsin, the Chicago FHLB 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.
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The Chicago FHLB 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 Chicago FHLB members and community based
organizations that have partnered with members, include:
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| Downpayment Plus®
(DPP®) |
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| Chicago FHLB members enrolled in the DPP® Program
may access subsidies of up to $5,000 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. |
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| Eligible Households |
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- 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 Questions and Answers.
To find out if you are eligible for a DPP subsidy, contact a participating
Chicago FHLB member in Illinois
or Wisconsin.
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| Downpayment Plus Advantage®
(DPP Advantage®) |
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| The DPP Advantage® Program is an offshoot of the Chicago
FHLB's DPP Program (see above.) The program provides assistance to
homebuyers receiving mortgage financing through a non-profit organization,
such as Habitat for Humanity, or a public agency. The non-profit organization
or public agency works with a Chicago FHLB member to access the DPP
Advantage subsidy. |
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Like the DPP Program, Chicago FHLB members enrolled in the DPP
Advantage Program may access subsidies of up to $5,000 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 Chicago FHLB member in Illinois
or Wisconsin. |
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| Eligible Households |
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- 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
or public agency 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 or public agency providing
your mortgage financing to see if they have partnered with a FHLB
member to participate in the DPP Advantage Program. |
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| Affordable Housing Program |
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| Twice a year, the Chicago FHLB provides funds to Chicago
FHLB members partnered with non-profit 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.
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| Predatory Lending |
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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
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| Other Resources |
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| 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. |
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