Connecting homebuyers with trusted lenders is one of many ways REALTORS® provide value to their clients. But community lenders can offer more than a loan to help clients achieve homeownership in a tough market. Through membership in the Federal Home Loan Bank of Chicago, Illinois banks and credit unions provide two programs that can be game-changers for low- and moderate-income homebuyers: Downpayment Plus® Program (DPP®) and the Community First® Housing Counseling Resource Program (HCRP).

Clients who struggle with the upfront costs of buying a home may be happy to learn that help is available through FHLBank Chicago’s DPP program. Participating member institutions can provide eligible borrowers with forgivable grants of up to $10,000 to cover down payment and closing costs. Buyers submit purchase and income documentation, contribute at least $1,000 to the purchase transaction, and complete pre-purchase homebuyer education and counseling through an approved agency. In 2024 alone, FHLBank Chicago members have already disbursed almost $11 million in DPP grants to assist nearly 1,200 Illinois households.

For an even bigger boost, DPP grants can be combined with Illinois Housing Development Authority (IHDA) Access Mortgage programs, which also offer up to $10,000 to help with down payment and closing costs—in addition to affordable fixed rates. Both DPP and Access Mortgage programs are open to first-time and repeat homebuyers.

Buying a home is one of the most significant financial commitments your clients will ever make—and often one of the most intimidating, particularly for those who are new to homeownership. Homebuyer education and counseling equip individuals to make informed decisions for themselves and their families, preparing them for long-term success as homeowners. Through the Housing Counseling Resource Program, FHLBank Chicago has partnered with IHDA to provide $4M total in funding to assist 21 housing counseling agencies expand access to these essential services—especially for minority and low- to moderate-income buyers.

For Angela and Luis, a couple who immigrated from Colombia in 2020, the dream of owning a home became increasingly urgent as rents continued to rise. Working with Midland States Bank, a local member of FHLBank Chicago, they received a $10,000 DPP grant and a referral to Consumer Credit Counseling Services, an HCRP beneficiary organization. Through counseling, they were able to plan a budget for their new home and establish credit to purchase it (a common challenge for new immigrants). When Angela and Luis were ready, their REALTOR® helped them find the right home for their budget and needs.

A list of FHLBank Chicago members is available at fhlbc.com/illinois-members.