Illinois offers a diverse housing market, from the vibrant neighborhoods of Chicago to quiet small towns and rural communities across the state. Whether you’re searching in a bustling city or a suburban area, knowing what financial assistance is available can be just as important as choosing the right home.
For many buyers, especially first-time homeowners and moderate-income households, down payment assistance (DPA) programs can make the path to ownership more affordable. In Illinois, resources include statewide programs as well as local initiatives offered by counties and municipalities. These programs often come in the form of forgivable loans, grants, or low-interest second mortgages to help cover upfront costs.
This guide highlights some of the most established and widely accessible DPA programs in Illinois. While not a comprehensive list, it focuses on options with consistent funding and meaningful benefits. We’ll continue to update this page as programs evolve or expand.
Statewide Down Payment Assistance Programs
Illinois Housing Development Authority (IHDA) programs are available across the state and are often the first stop for buyers seeking help. Here are three of the most widely used:
IHDAccess Forgivable
The IHDAccess Forgivable Program provides 4% of the purchase price (up to $6,000) as a second mortgage that is forgiven after 10 years. No monthly payments are required. If the home is sold or refinanced before the 10-year mark, the unforgiven balance must be repaid.
Eligibility: Borrowers must have a minimum 640 credit score, a debt-to-income ratio of 50% or less, contribute at least $1,000 or 1% of the purchase price, and meet IHDA’s county-specific income and purchase price limits.
IHDAccess Deferred
The IHDAccess Deferred Program provides 5% of the purchase price (up to $7,500) as a 0% interest second mortgage with no monthly payments, deferred for 30 years or until the home is sold or refinanced.
Eligibility: Borrowers must meet the same IHDA credit, income, and contribution requirements as IHDAccess Forgivable, with county-specific income limits applied.
IHDAccess Repayable
The IHDAccess Repayable Program offers 10% of the purchase price (up to $10,000) as a 0% interest second loan repaid over 10 years. Borrowers make monthly payments but pay no interest.
Eligibility: Minimum credit score of 640, debt-to-income ratio ≤ 50%, at least $1,000 or 1% contribution, and must fall under IHDA’s income and purchase price limits.
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Down Payment Assistance Programs by County
Several Illinois counties sponsor their own programs to target local buyers.
Cook County Homebuyer Assistance Program
Cook County’s DPA offers up to 5% of the home’s purchase price (capped at $25,000) as a forgivable loan for down payment, closing costs, or interest rate buy-downs.
Eligibility: Household income must be under 120% of AMI, though homes purchased in Qualified Census Tracts or Disproportionately Impacted Areas may have no income cap.
Madison County HOMEbuyer Program
Madison County’s HOMEbuyer Program provides up to $15,000 in down payment and closing cost assistance through a 0% interest forgivable loan. Funds are typically forgiven after five years of owner occupancy, with no monthly payments required.
Eligibility: Buyers must be first-time homebuyers, earn no more than 80% of AMI, have a minimum credit score of 620, and purchase an eligible 1-2 unit home or condo in Madison County for use as their primary residence.
Lake County/Community Partners for Affordable Housing (CPAH)
Lake County’s Program provides up to 5% of the purchase price (capped at $13,999) as a forgivable loan, forgiven monthly over five years.
Eligibility: First-time buyers with household income ≤ 80% of AMI, purchasing a home priced $304,950 or less in Lake County, and contributing at least $1,000 of their own funds.
Down Payment Assistance Programs by City
Some of the most generous programs are at the city level, especially in Chicago and its surrounding areas.
Chicago Housing Authority (CHA) Down Payment Assistance Program
The CHA Down Payment Assistance Program provides a $20,000 grant for CHA residents and a $10,000 grant for other Illinois residents or those moving into Chicago. Funds can be used for down payment or closing costs and are forgiven after 10 years of owner occupation.
Eligibility: Buyers must be first-time homebuyers, meet CHA income limits, purchase a home in Chicago, complete an eight-hour HUD-approved education course, obtain a preapproval from an approved lender, and contribute at least $3,000, but if you receive Social Security income, the required amount is $2,000.
Town of Normal Down Payment Assistance Program
The Town of Normal DPA provides up to $5,000 (or 10% of the purchase price, whichever is less) as a five-year forgivable loan for down payment and closing costs.
Eligibility: Buyers must have household income ≤ 80% of AMI, purchase a home within the Town of Normal as their primary residence, maintain a housing debt-to-income ratio ≤ 36%, and contribute enough to ensure they have at least $1,000 in savings after closing.
Village of Romeoville “Assist” Homeownership Program
Village of Romeoville Program participates in the Assist Homeownership Program, which combines a cash grant for down payment and closing costs with a competitive fixed-rate mortgage. The program also offers a Mortgage Credit Certificate (MCC) for ongoing tax savings.
Eligibility: Buyers must be first-time homebuyers, meet income limits, purchase within program price limits, and occupy the home as their primary residence.
Other Programs in Illinois
Here are additional programs that may be worth exploring based on your location or background.
Statewide Programs
Chenoa Fund (Nationwide program available in Illinois)
County Programs
City Programs
What Is AMI?
Many of the county and city-specific down payment assistance programs in Illinois have restrictions related to an applicants income level relative to AMI.
What, exactly, does this mean?
Area median income (AMI) is a common metric for assessing a homebuyer's need for assistance. For example, if the AMI in the area where you're planning to buy is $95,000 and the program allows for income up to 80% of the median, you could earn as much as $76,000 and quality for DPA.
Fannie Mae provides an AMI Lookup Tool to find the median income for your community.
Final Thoughts
Illinois offers a wide range of down payment assistance programs that can help lower the upfront cost of buying a home. Whether you’re searching in Chicago, a suburban community, or a smaller town, these resources can give you the financial boost needed to make homeownership more attainable. Experiment with our loan calculators and stay up to date with current mortgage rates to make informed decisions. If you’re planning to buy in Illinois, taking advantage of these programs could make a real difference.
