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Chicago Home Buyer Assistance

Chicago, Illinois

Last verified
See what you qualify forOfficial program site →
Assistance

$60,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$350,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Chicago Home Buyer Assistance?

Chicago Home Buyer Assistance is a forgivable loan for homebuyers in Chicago, Illinois.

  • The Chicago Home Buyer Assistance program provides up to $60,000 in down payment and closing cost assistance for eligible homebuyers purchasing a home in the City of Chicago. The program offers a forgivable loan administered by the City of Chicago Department of Housing in partnership with participating lenders. Assistance is forgiven over time if the borrower remains in the home as their primary residence.
  • Up to $60,000 in forgivable loan assistance for down payment and closing costs.
  • forgiven after 5 years if the home remains owner-occupied.
  • available to first-time homebuyers purchasing in Chicago.
  • compatible with FHA and Conventional loans.
  • Funding comes from Local Government.

How much assistance does it provide?

Chicago Home Buyer Assistance offers up to $60,000 in assistance.

  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Chicago Home Buyer Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Sale and No Longer Primary.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Chicago Home Buyer Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • A minimum 620 credit score
  • A completed homebuyer education course
  • Residency: No Requirement
  • Citizenship or immigration status: U.S. Citizen or Permanent Resident
  • Property must be located within Chicago city limits; must complete HUD-approved homebuyer education course; loan is forgiven after 5 years if borrower maintains primary residency; administered by City of Chicago Department of Housing.

The program excludes

  • Purchases above the $350,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Chicago Home Buyer Assistance limits household income to 80% of the area median income, which varies by county and household size.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Chicago Home Buyer Assistance caps the purchase price at $350,000.

  • Eligible property types include Single Family, Condo, and Townhouse.

Where does it apply?

Chicago Home Buyer Assistance serves buyers purchasing in Chicago, Illinois.

How do you apply?

Applications for Chicago Home Buyer Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-Come-First-Served, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

Free course from Hey Prescott

Chicago Home Buyer Assistance, explained

A short, free course on Chicago Home Buyer Assistance: what it is, who it is for, how it is forgiven, where it applies and how to apply. Based on program data from July 2026. About ten minutes.

5 modules · About 10 minutes

Read the course

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