Illinois Launches $46M Downpayment Plus Grant Program for 2025 – Your Chance to Apply Now

What Is the Downpayment Plus Grant Program?

Homebuyers in Illinois have a major opportunity heading into 2025. The Federal Home Loan Bank of Chicago (FHLBank Chicago) has opened up its latest round of homeownership assistance through the Downpayment Plus (DPP) and Downpayment Plus Advantage (DPP Advantage) programs. A total of $46 million in forgivable grant funds is available to qualifying homebuyers in Illinois. LBC Capital is here to help you take full advantage of this opportunity by guiding you through the application process and connecting you with approved lenders. These grants are designed to help low- to moderate-income buyers overcome one of the biggest barriers to homeownership—coming up with a down payment.

This isn’t a loan that needs to be repaid. It’s a forgivable grant that allows qualified homebuyers to close with less out-of-pocket expense while building long-term equity.

The Downpayment Plus program is a housing assistance initiative offered through FHLBank Chicago and its member institutions. It’s specifically designed to help income-eligible buyers with down payment and closing cost assistance.

Up to $10,000 in Forgivable Funds

Qualifying buyers may receive up to $10,000 in grant funds, which can be used toward their down payment and closing costs. This financial assistance is applied directly at closing, reducing the upfront cash buyers need to bring to the table.

To receive the full benefit, homeowners must agree to a five-year retention period. That means living in the home as your primary residence for at least five years. After that, the grant is fully forgiven. If the property is sold or refinanced before five years, a prorated portion of the grant may need to be repaid.

LBC Capital helps you understand these terms upfront, so there are no surprises. We make sure your grant is properly structured and managed through the closing process.

Who Qualifies for the Program?

The program is aimed at supporting low- to moderate-income households. Whether you’re a first-time homebuyer or purchasing a home again after a gap, you may qualify.

Income Limits

To be eligible, your total household income must be at or below 80 percent of the area median income (AMI) for your county and household size. These limits are updated annually and vary by location. LBC Capital helps you determine your eligibility quickly and accurately using the latest figures.

Minimum Contribution and Counseling Requirements

Buyers must contribute at least $1,000 of their own funds toward the purchase. This investment shows commitment and aligns with program guidelines.

You must also complete homebuyer education and counseling from a HUD-approved provider. These sessions are typically completed online or in person and are designed to prepare buyers for the responsibilities of homeownership. LBC Capital will connect you with approved counselors and ensure you meet this requirement on time.

Why Act Now? First-Come, First-Served Funding

The total pool of $46 million is available for use throughout 2025. However, this funding is limited and distributed on a first-come, first-served basis. In 2024, over $42 million was disbursed through the DPP program, assisting thousands of buyers across Illinois. As awareness grows, so does demand.

Waiting could mean missing out. Once funds are exhausted, no additional grants will be issued for the year. That’s why LBC Capital encourages serious buyers to get prequalified and begin the process as early as possible.

How LBC Capital Supports Your Success

Getting approved for the Downpayment Plus grant involves several steps, including income verification, documentation, and working with a participating lender. LBC Capital streamlines this entire process, offering the expert guidance and support you need from start to finish.

Personalized Prequalification

LBC Capital starts by reviewing your income, assets, and goals. We’ll determine whether you meet the eligibility guidelines and help you gather the necessary documentation. If you’re not eligible for DPP, we’ll identify other programs that may work for you—including city, county, or state-level down payment assistance.

Referral to Approved Lenders

Only FHLBank Chicago member institutions can distribute DPP funds. LBC Capital has close relationships with participating lenders and will refer you to one that fits your timeline, location, and financing goals. This ensures you’re working with a trusted provider that understands the program inside and out.

Coordinating Counseling and Education

Completing a homebuyer education course can feel like just another item on your to-do list. LBC Capital simplifies the process by connecting you with HUD-approved counseling agencies. We’ll make sure your certificate is issued and submitted on time so that your closing isn’t delayed.

Grant Submission and Closing Support

Once all requirements are met, LBC Capital works closely with the lender to finalize your DPP grant. At closing, the funds are applied to your down payment and closing costs. Our team stays with you through the final signature to ensure a smooth experience.

First-Time and Repeat Buyers Can Benefit

While many down payment assistance programs are restricted to first-time buyers, DPP is more flexible. You don’t need to be a first-time homebuyer, just income-eligible and planning to use the property as your primary residence.

LBC Capital serves a wide range of clients—from young professionals purchasing their first condo to growing families upgrading to a larger home. If you’ve been priced out of the market in the past, this grant could make the difference.

Additional Benefits of Working With LBC Capital

There are many mortgage brokers in the Illinois market, but few offer the depth of support and clarity that LBC Capital provides. We don’t just process applications—we partner with you to create a smarter path to homeownership.

We understand that buying a home is about more than just numbers. It’s about security, stability, and long-term investment. LBC Capital provides transparency, timely communication, and access to programs that truly make a difference.

We also stay current on updates from FHLBank Chicago and other housing authorities, so you’re always receiving the most accurate information. That’s especially important with time-sensitive funding like DPP.

Take the Next Step Toward Homeownership

If you’re planning to buy a home in Illinois in 2025, don’t leave $10,000 on the table. The Downpayment Plus grant is your opportunity to lower your upfront costs and move into your new home with more financial confidence.

LBC Capital is ready to help you access this valuable resource. From eligibility review to closing day, we offer personal guidance every step of the way.