FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program

What is FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program is a forgivable loan for homebuyers in Statewide, Illinois, administered by Federal Home Loan Bank of Chicago (administered via nonprofit mortgage lenders partnering with FHLBank Chicago members).

• Downpayment Plus Advantage (DPP Advantage) is the companion program to DPP, designed specifically for nonprofit organizations that originate and fund first mortgages directly to homebuyers (such as Habitat for Humanity affiliates). The nonprofit must partner with a FHLBank Chicago member institution to access funds. Grants up to $10,000 (or 25% of first mortgage) forgiven over 5 years. Unlike DPP, no minimum borrower contribution is required.
• Up to $10,000 forgivable grant.
• No borrower contribution required.
• Designed for Habitat for Humanity and similar nonprofits.
• Stackable with other assistance.
• 5-year pro-rata forgiveness.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal Home Loan Bank of Chicago AHP set-aside funds.

How much assistance does it provide?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program offers up to $10,000 in assistance.

• Award tiers: None; single tier.
• Buyer contribution: No minimum borrower contribution required for DPP Advantage (unlike DPP which requires $1,000). DPP Advantage is specifically for nonprofit-originated first mortgages such as Habitat for Humanity.
• The program can be combined with Federal, state, and local programs; CDBG; HOME; IHDA programs; can layer with nonprofit lender's own subsidy.
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Chicago (administered via nonprofit mortgage lenders partnering with FHLBank Chicago members) determines any individual award.

Do you have to pay it back?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale or refinance before end of 5-year retention period unless buyer is also <=80% AMI; forgiven pro-rata monthly over 60 months; no repayment if amount due is $2,500 or less.
• The assistance is recorded in Second lien (retention agreement recorded on property in member name) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program 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&rsquo;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?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program caps the purchase price as follows: No stated limit; sales price may not exceed appraised value for related-party transactions.

• Eligible property types include single-family, two-unit, condominium, and manufactured home (titled as real estate).
• New construction is eligible.
• Manufactured homes are eligible.

Where does it apply?

FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program is a federal program, so it is not limited to Illinois.

How do you apply?

Applications for FHLBank Chicago Downpayment Plus Advantage (DPP Advantage) Program go through Federal Home Loan Bank of Chicago (administered via nonprofit mortgage lenders partnering with FHLBank Chicago members), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Pre-purchase education: HUD-approved counseling agency OR Framework, eHome America, Fannie Mae HomeView, Freddie Mac CreditSmart. Pre-purchase counseling: HUD-approved counseling agency. Both required; certificates required for at least one borrower..

2. 2

   Contact Federal Home Loan Bank of Chicago (administered via nonprofit mortgage lenders partnering with FHLBank Chicago members) to reserve funds

   Funds are reserved through First-come, first-served; FHLBank Chicago member submits reservation in eBanking on behalf of nonprofit partner, and are subject to availability.

3. 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.