FHLBank Chicago Launches the Mortgage Partnership Finance® Habitat for Humanity® Program to Expand the Supply of Affordable Housing Across Illinois and Wisconsin

New program delivers mortgage rates approximately 250 basis points below market and flexible underwriting to help member institutions support Habitat affiliates and low-to-moderate income homebuyers

CHICAGO--(BUSINESS WIRE)--The Federal Home Loan Bank of Chicago (FHLBank Chicago) has launched its Mortgage Partnership Finance^® (MPF^®) Habitat for Humanity^® Program, a new community lending offering designed to help member financial institutions partner with Habitat for Humanity affiliates across Illinois and Wisconsin to deliver below-market mortgage financing to low-to-moderate income homebuyers.

Through the program, FHLBank Chicago approved members can deliver mortgage loans originated for homebuyers working with Habitat for Humanity affiliates at interest rates approximately 250 basis points below prevailing market rates, with the rate discount funded by FHLBank Chicago, while still receiving premium pricing to help offset the cost of loan origination. The program is backed by $2.5 million in interest rate subsidies, supporting $20-25 million in funded unpaid principal balance in 2026.

Program Features and Benefits

The MPF Habitat for Humanity Program introduces a standardized, scalable pathway for members to deepen their Habitat partnerships while strengthening their community investment footprint. Key features include expanded underwriting flexibility and seamless integration with existing MPF delivery commitment and funding processes.

Accelerating Habitat’s Mission

Under the traditional Habitat for Humanity model, affiliates return to fundraising after each home delivery, creating delays before the next construction cycle can begin. By selling loans to the MPF Program at below-market rates, members can expand first-mortgage financing capacity, return more capital to Habitat affiliates, and help accelerate the start of the next construction cycle—growing housing supply and enabling more families to achieve homeownership.

Why It Matters

“Affordable homeownership is one of the most powerful drivers of long-term financial stability for families and communities. Through this program, we're giving our member institutions a meaningful tool to deepen their Habitat partnerships and help more low-to-moderate income families across Illinois and Wisconsin achieve the dream of owning a home,” said Patrick Sullivan, Executive Vice President, Group Head, MPF Program. “By delivering mortgage rates approximately 250 basis points below market, we're not just making homeownership more accessible — we're helping Habitat affiliates accelerate their construction cycles and serve more families, faster.”

“Access to flexible, affordable mortgage financing is essential to helping more families move from paying rent to building equity through homeownership,” said Sarah Brachle Wagner, Chief Executive Officer, Chicagoland Habitat for Humanity.

“By expanding access to affordable rates and more flexible underwriting, this program strengthens our ability to reach more qualified homebuyers, recycle capital faster, and support more Habitat builds — accelerating stability for families and momentum for the communities we serve,” said Peter Lewandowski, Chief Executive Officer, Habitat for Humanity of Wisconsin.

The MPF Habitat for Humanity Program complements other existing FHLBank Chicago offerings, including the Downpayment Plus^® (DPP^®) Program — which provides grants of up to $10,000 for down payment and closing cost assistance — and the Community Advance product, which offers discounted advances of 200 basis points below regular rates for funding affordable housing. Members are encouraged to leverage these offerings together to maximize their community impact. For more information, on the MPF Habitat for Humanity Program, visit fhlbc.com or contact MPF Sales at [e-mail].

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 Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. “Mortgage Partnership Finance” and “MPF” are registered trademarks of the Federal Home Loan Bank of Chicago. To learn more about FHLBank Chicago, please visit fhlbc.com.