FHLBank Chicago Launches 2026 Downpayment Plus® Grant Programs, Unlocking $28 Million to Support Homebuyers in Illinois and Wisconsin

CHICAGO–(BUSINESS WIRE)–The Federal Home Loan Bank of Chicago (FHLBank Chicago) is addressing housing affordability with the launch of its 2026 Downpayment Plus (DPP^®) and Downpayment Plus Advantage^® (DPP Advantage^®) grant programs. $28 million will be made available through these programs to help income-eligible homebuyers across Illinois and Wisconsin overcome one of the most significant barriers to homeownership: saving for a down payment.

This announcement comes as housing affordability remains a challenge for many households, with rising costs and limited inventory creating obstacles for first-time and low-to-moderate income buyers.

Through partnerships with member financial institutions, FHLBank Chicago’s DPP and DPP Advantage programs offer forgivable grants to homebuyers earning up to 80% of the area median income. Eligible households may receive up to $10,000 in assistance, which is applied at closing.

With DPP, qualifying homebuyers access support directly through participating FHLBank Chicago members. DPP Advantage extends this assistance to homebuyers participating in nonprofit-led mortgage programs in Illinois and Wisconsin, with nonprofits partnering with an FHLBank Chicago member to secure funding.

“Down payment assistance continues to be a critical resource for addressing barriers to homeownership,” said Katie Naftzger, Senior Vice President and Community Investment Officer at FHLBank Chicago. “By working alongside our members, the Downpayment Plus programs help individuals and families move from aspiration to action, even as affordability pressures persist across our region.”

Since 1994 through year-end 2024, FHLBank Chicago has allocated over $300 million in DPP funding to more than 47,000 households. A majority of these grants assisted first-time homebuyers, underscoring the program’s role in helping individuals and families take an important first step toward long-term housing stability.

Member institutions across the district continue to leverage the program to meet local housing needs. IncredibleBank, headquartered in Wausau, Wisc. has used the DPP program to help homebuyers in rural communities where modest wage growth and limited housing supply often make saving for a down payment especially challenging.

“In many of the communities we serve, homeownership can actually be more affordable than renting — but the upfront costs are often the biggest hurdle,” said Carmen Schipferling, Home Lending Specialist at IncredibleBank. “The Downpayment Plus program makes a real difference because it’s meaningful assistance and it’s easy to navigate. It allows us to meet people where they are and help them realize that buying a home is truly within reach.”

Since its inception, FHLBank Chicago’s Downpayment Plus program has empowered its member banks, credit unions, and community development financial institutions to provide down payment assistance to qualified low- and moderate-income households. Each year, the program helps expand access to homeownership while strengthening communities across Illinois and Wisconsin.

With $28 million available in 2026, FHLBank Chicago encourages its members and nonprofit partners to leverage the Downpayment Plus programs to support eligible homebuyers in their communities.

To learn more about the Downpayment Plus programs, visit fhlbc.com.

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.

Contacts

Casey Reidy, 312.565.5291
[email protected]