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Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage)

Federal Home Loan Bank of Chicago (FHLBank Chicago), delivered through participating member financial institutions · Wisconsin

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Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage)?

Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage) is a forgivable loan for homebuyers in Wisconsin, administered by Federal Home Loan Bank of Chicago (FHLBank Chicago), delivered through participating member financial institutions.

  • Forgivable down payment and closing cost assistance grants for income-eligible homebuyers in Illinois and Wisconsin, provided through participating FHLBank Chicago member financial institutions. The grant is paid on behalf of the borrower at closing and forgiven on a monthly basis over a five-year retention period. DPP Advantage extends the assistance to homebuyers participating in nonprofit-led (e.g., Habitat for Humanity) first-mortgage programs. $28 million was made available across IL and WI in 2026.
  • Forgivable grant of up to the lesser of $10,000 or 25% of the first mortgage amount toward down payment, closing costs, and up to $500 of homebuyer education/counseling costs.

How much assistance does it provide?

Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage) offers up to $10,000 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 — Federal Home Loan Bank of Chicago (FHLBank Chicago), delivered through participating member financial institutions determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by Sale, transfer, loss of owner-occupancy, or in some cases refinancing during the 5-year retention period (pro-rated, forgiven monthly).
  • The assistance is recorded in second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

The program requires

  • The home is occupied as a primary residence
  • A completed homebuyer education course
  • Household income at or below 80% of area median income (limits vary by county). Borrower must contribute a minimum of $1,000 toward the transaction (DPP; DPP Advantage requires no homebuyer contribution). Both pre-purchase homebuyer education and pre-purchase counseling required. A 5-year retention agreement is recorded on the property; grant forgiven monthly over 5 years. First mortgage term must be at least 5 years; interest-only first mortgages ineligible; on ARMs the initial rate lock must be at least 5 years. Cash back at closing cannot exceed $250. Available first-come, first-served while funds remain. May be combined with other federal/state/local programs subject to investor approval. Available only through participating FHLBank Chicago member institutions.

The program excludes

  • 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?

Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage) limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% of area median income; limits vary by county.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Where does it apply?

Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage) serves buyers purchasing anywhere in Wisconsin.

How do you apply?

Applications for Downpayment Plus (DPP) / Downpayment Plus Advantage (DPP Advantage) go through Federal Home Loan Bank of Chicago (FHLBank Chicago), delivered through participating member financial institutions, 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 Federal Home Loan Bank of Chicago (FHLBank Chicago), delivered through participating member financial institutions to reserve funds

    Funds are reserved with the provider 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.

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