FHLBank Chicago Opens 2025 Downpayment Plus® Grant Program Making $46 Million Available to Support Homebuyers in Illinois and Wisconsin

CHICAGO--(BUSINESS WIRE)--To support housing affordability and help more individuals and families achieve the dream of homeownership, the Federal Home Loan Bank of Chicago (FHLBank Chicago) announces its commitment of $46 million in funding for its 2025 Downpayment Plus (DPP^®) grant program opening today.

Partnering with member financial institutions, FHLBank Chicago provides down payment assistance through the Downpayment Plus^® (DPP^®) and Downpayment Plus Advantage^® (DPP Advantage^®) programs to homebuyers earning up to 80% of the area median income. DPP provides forgivable grants to income-eligible homebuyers at closing when financing through a participating member. DPP Advantage extends this assistance to homebuyers in nonprofit-led programs in Illinois and Wisconsin that provide direct mortgage financing, with nonprofits partnering with an FHLBank Chicago member to access funds. Eligible households may receive up to $10,000 in assistance.

“FHLBank Chicago is proud to work alongside our members to deliver resources that open the door to homeownership,” said Katie Naftzger, Senior Vice President and Community Investment Officer at FHLBank Chicago. “While affordability challenges persist, the Downpayment Plus programs continue to serve as an essential tool for addressing barriers to homeownership and helping individuals and families build a foundation for their future.”

In 2024, FHLBank Chicago disbursed more than $42 million in funding through the DPP programs, helping homebuyers across the region, including over 2,200 in Illinois and 1,300 in Wisconsin. Associated Bank, headquartered in Wisconsin, was among the program’s many participants, leveraging $1 million in DPP funding and over $190,000 through DPP Advantage to support homebuyers.

“The Downpayment Plus programs are instrumental in making homeownership accessible for individuals and families in our communities,” said Eduardo Herrera-Mier, Senior Vice President, Director of Multi-Cultural & Affordable Lending at Associated Bank. “These grants enable us to meet homebuyers where they are, providing resources to overcome financial barriers and create lasting impact.”

Since its inception, FHLBank Chicago’s DPP program has enabled more than 200 member banks, credit unions, and CDFIs to disburse down payment assistance to qualified low- and moderate-income households. In 2024, over 90% of DPP grants supported first-time homebuyers, reflecting the program’s strong alignment with the needs of aspiring homeowners.

With $46 million available for 2025, FHLBank Chicago invites its members to leverage the DPP grant program to make a difference in their communities. By addressing financial hurdles for eligible homebuyers, DPP helps members drive meaningful change and foster stronger, more resilient neighborhoods.

Learn more about the DPP grant programs at fhlbc.com/dpp.

About the Federal Home Loan Bank of Chicago

FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.

“Downpayment Plus”, “Downpayment Plus Advantage”, “DPP” and “DPP Advantage” are registered trademarks of the Federal Home Loan Bank of Chicago.