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 four 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 monthly over 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.
IHDAccess Home
The IHDAccess Home Program provides 6% of the purchase price (up to $15,000) as a deferred second mortgage for down payment and closing costs. No monthly payments are required, and the full assistance amount becomes due if the home is sold or refinanced or after 30 years.
Eligibility: The program is generally for first-time homebuyers, though qualified veterans and buyers purchasing in targeted areas may also qualify. 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 income and purchase price limits.
FHLBank Chicago Downpayment Plus
The FHLBank Chicago Downpayment Plus Program provides forgivable grants equal to the lesser of $10,000 or 25% of the first mortgage amount for down payment and closing costs. Grants are forgiven monthly over five years.
Eligibility: Household income must be at or below 80% of AMI. Buyers must obtain financing through a participating FHLBank Chicago member, complete required homebuyer education and counseling, and contribute at least $1,000 toward the purchase.
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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 final first loan amount (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. The assistance is forgivable after five or 10 years, depending on the amount received, as long as program requirements are met.
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 $13,999 as a 0% forgivable loan for down payment and closing costs. The assistance is forgiven monthly over five years.
Eligibility: First-time buyers with household income ≤ 80% of AMI, purchasing a home that meets CPAH’s current property value limit in Lake County, and contributing at least $1,000 or 1% of the purchase price, whichever is greater.
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. The contribution requirement is waived for VA loans.
Chicago HomeGrown Purchase Assistance Program
The Chicago HomeGrown Purchase Assistance Program offers up to $70,000 for down payment and closing costs, with the amount based on household income and the home’s neighborhood zone. Assistance cannot exceed 25% of the purchase price and is forgiven monthly over five years as long as program requirements are met.
Eligibility: Buyers must purchase a primary residence in Chicago, contribute at least 1% of the purchase price, obtain a fixed-rate mortgage, and have a back-end debt-to-income ratio of 38% or less. Income limits are up to 120% of AMI in Zone A and 150% of AMI in Zone B.
Chicago MMRP Purchase Assistance Grant
The MMRP Purchase Assistance Grant provides $30,000 in down payment assistance for buyers purchasing a home in one of Chicago’s designated Micro-Market Recovery Program areas. The grant carries a five-year owner-occupancy requirement and is subject to a recapture agreement.
Eligibility: Household income must be at or below 120% of AMI. Buyers must purchase an eligible 1-4 unit home or condo as their primary residence, complete at least eight hours of HUD-approved homeownership counseling, contribute at least 1% toward the down payment, and obtain a standard 30-year fixed-rate first mortgage.
Town of Normal Down Payment Assistance Program
The Town of Normal DPA provides up to $5,000 as a five-year forgivable loan for down payment and closing costs. Town funds cannot exceed 50% of the required down payment, though there is no equivalent limit on eligible 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 a total debt-to-income ratio ≤ 43%, and retain at least $1,000 in a bank account after closing.
Choose Aurora Homebuyer Assistance Program
The Choose Aurora Homebuyer Assistance Program offers up to $27,000 in assistance. Buyers at or below 80% of AMI may qualify for a $20,000 0% deferred loan, up to a $5,000 nonrepayable closing-cost grant, and up to a $2,000 repair grant. Buyers between 81% and 120% of AMI may qualify for the $20,000 deferred loan plus up to $2,000 for eligible repairs.
Eligibility: Buyers must have household income at or below 120% of AMI and purchase an eligible home in Aurora for use as their primary residence.
City of Decatur HOME Buyer Down Payment Assistance Program
The City of Decatur HOME Buyer Down Payment Assistance Program provides up to $14,999, based on financial need, as a 0% five-year deferred forgivable second mortgage for down payment and closing costs.
Eligibility: Household income must be at or below 80% of AMI. Buyers must obtain a first mortgage from a participating lender, contribute at least 2% toward the down payment from their own funds, complete required homebuyer counseling, and purchase an eligible home within Decatur.
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)
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 on Illinois DPA
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.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
