FHLBank Chicago Delivers $43 Million in Down Payment Assistance as Affordability Pressures Persist

CHICAGO--(BUSINESS WIRE)--As higher home prices and upfront costs continue to sideline many first-time buyers, the Federal Home Loan Bank of Chicago (FHLBank Chicago) provided $43 million in down payment assistance in 2025, helping more than 4,500 households across Illinois and Wisconsin purchase homes through its Downpayment Plus^® (DPP^®) programs.

The grant funding, delivered through FHLBank Chicago member institutions, helped income-eligible homebuyers cover down payment and closing costs—often cited as one of the biggest barriers to homeownership, particularly for first-time and moderate-income households.

“Demand for down payment assistance continues to grow as affordability tightens,” said Katie Naftzger, SVP and Community Investment Officer at FHLBank Chicago. “By partnering with our members, we are helping households who are ready to buy to bridge that gap.”

Through DPP and Downpayment Plus Advantage^® (DPP Advantage^®), eligible households can receive up to $10,000 in forgivable grant assistance, applied at closing. The DPP Advantage program extends the funding to homebuyers participating in nonprofit-led mortgage programs, with nonprofits partnering with an FHLBank Chicago member to secure funding.

Local Impact Across Illinois and Wisconsin

Novus Home Mortgage, a division of Ixonia Bank, based in Brookfield, Wis., helped over 160 households purchase homes in 2025 disbursing nearly $1.1 million in DPP grants, with 95 percent of recipients purchasing their first home. Since joining the program in 2015, Ixonia Bank has delivered more than $2.8 million in down payment assistance to over 400 households.

“Programs like DPP help bridge the gap for homebuyers who are financially prepared to purchase a home but need help covering upfront costs,” said Eric Egenhoefer, President and CEO at Novus Home Mortgage. “Through our partnership with FHLBank Chicago, this support makes the difference between postponing a purchase and becoming a homeowner.”

Citizens Equity First Credit Union (CEFCU), based in Peoria, Ill., disbursed $1 million in DPP grants in 2025, assisting more than 100 households, many of them first-time homebuyers. CEFCU has participated in the program since 2000 and has delivered more than $7.3 million in down payment assistance to more than 1,100 households.

“At CEFCU, helping members achieve homeownership is central to our mission,” said Stacy Leavitt, Vice President of Mortgage Lending at CEFCU. “DPP allows us to provide meaningful support to first-time buyers and families working to build long-term financial stability.”

Long-Term Program Reach

Since launching the DPP programs in 1994 through year-end 2025, FHLBank Chicago has allocated more than $330 million, to support more than 51,000 households across its district. A significant share of recipients have been first-time homebuyers.

With $31 million available in 2026, FHLBank Chicago encourages its member institutions and nonprofit partners to leverage the DPP programs to support eligible homebuyers in their communities.

To learn more about the DPP programs, visit 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.

About Novus Home Mortgage

Established in 2019 Novus Home Mortgage is a division of Ixonia Bank. Headquartered in the Greater Milwaukee area and originating in all 50 states, Novus is committed to creating a simpler, more efficient, and more transparent mortgage process. It leverages the industry’s most innovative technology to provide 24/7 transparency, streamline the entire process, and minimize effort for all parties. Novus delivers exceptional customer service, along with an extensive offering of loan products ranging from FHA, VA, and conventional loans to niche products. For more information, visit www.novushomemortgage.com. NMLS # 423065. Equal Housing Lender.

About Citizens Equity First Credit Union

With assets totaling more than $8.4 billion, CEFCU serves over 420,000 members through 26 Member Centers in Illinois, 7 California Member Centers, the CEFCU Financial Center, the CEFCU ATM Network, CEFCU’s website — cefcu.com, the surcharge-free Co-op ATM Network, and the CU Service Center Shared Branch Network.