Downpayment Plus® (DPP®) and Downpayment Plus Advantage® (DPP Advantage®) offer Federal Home Loan Bank of Chicago (FHLB Chicago) members easy-to-access downpayment and closing cost assistance programs for low and moderate income homebuyers. Through these programs, FHLB Chicago members can reach out to and assist their customers in achieving homeownership. Downpayment Plus® 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.   Eligible Households • Total household income may not exceed 80% of the area median income (based on income guidelines published annually by HUD) for the area where the property is located. Members must use the FHLB Chicago Income Calculation Guidelines to determine a household's income. • 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 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. Any member of the FHLB Chicago can enroll to participate in the DPP Program. Participating members pay a $100 annual enrollment fee. There is also a $150 processing fee per DPP grant. These fees cannot be passed on to the homebuyer. Each member can access up to $60,000 in DPP funds for the 2008 program. The funds are available on a first come-first served basis. *The Downpayment Plus programs are funded through the homeownership set-aside component of the Affordable Housing Program (AHP). The FHLB Chicago contributes 10% of its previous year's net income to the AHP each year. The allocation is split between the FHLB Chicago's competitive application program and the Downpayment Plus programs. The AHP is governed by Federal Regulation 12 CFR Part 951. Downpayment Plus® Advantage The DPP Advantage Program is designed for households participating in homeownership programs offered by non-profit organizations that provide mortgage financing directly to the homebuyer, such as Habitat for Humanity. The non-profit organizations must partner with a FHLB Chicago member to access the DPP Advantage Program. FHLB Chicago members enrolled in the DPP Advantage Program may access subsidies up to $4,000 per household on behalf of eligible homebuyers. Like the DPP Program, the DPP Advantage subsidy may be used for downpayment and closing cost assistance, financial literacy and homebuyer counseling costs (up to $600), and/or rehabilitation costs associated with the purchase of a home.   Eligible Households • Total household income may not exceed 80% of the area median income (based on income guidelines published annually by HUD) for the area where the property is located. Members must use the FHLB Chicago Income Calculation Guidelines to determine a household's income. • First mortgage financing must be provided by a non-profit organization or public agency that provides mortgage financing directly to the homebuyer(s). • 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 Advantage subsidy. DPP Advantage 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(s) must repay a pro rata portion of the subsidy. For further information on DPP Advantage, review the DPP Advantage Frequently Asked Questions. Any member of the FHLB Chicago enrolled to participate in the DPP Program can participate in DPP Advantage. Participating members in the DPP Program pay a $100 annual enrollment fee. The fee covers both DPP and DPP Advantage Programs. This fee cannot be passed on to the homebuyer(s). Under the DPP Advantage Program, the $150 processing fee per grant is waived. The funds are available on a first come-first served basis. There is no limit to the number of DPP Advantage grants a member can make. Funds accessed under the DPP Advantage Program will not be applied toward the $60,000 member maximum under the DPP Program. Both Downpayment Plus Programs are administered by: In Illinois: Illinois League of Financial Institutions   (800) 237-1936; www.ilfi.org In Wisconsin: Wisconsin Partnership for Housing Development   (888) 318-4486; www.wphd.org Members should contact the administrator in the state in which they are headquartered to enroll in the DPP and DPP Advantage Programs or for further information on the programs. Homebuyers looking for downpayment assistance should contact a participating member of the DPP Program in Illinois or Wisconsin to see if they qualify for a grant.

The Kovach family of Morton Grove, Illinois had long hoped to own their own home. In 2003, Matt and Jennifer heard about the FHLB Chicago's Downpayment Plus® grant program. Now, just months later, the Kovachs are happy in their new home. For complete story »