Additional funding expands grant capacity for members helping income-eligible homebuyers across Illinois and Wisconsin

The Federal Home Loan Bank of Chicago (FHLBank Chicago) today announced an additional $17 million commitment to its Downpayment Plus^® programs, bringing total 2026 funding to $48 million. The added funds reflect FHLBank Chicago’s continued commitment to putting its cooperative resources to work through member financial institutions to help more income-eligible homebuyers across Illinois and Wisconsin overcome one of the biggest barriers to homeownership: upfront costs.

Through partnerships with member financial institutions, FHLBank Chicago's Downpayment Plus^® (DPP) and Downpayment Plus Advantage^® (DPP Advantage) programs provide forgivable grants of up to $10,000 to eligible homebuyers earning up to 80% of the area median income. FHLBank Chicago members provide first mortgage financing to access DPP funds. Nonprofits that provide mortgage financing for homebuyers, such as a Habitat for Humanity^® affiliate, partner with an FHLBank Chicago member to access DPP Advantage funds. The grants help cover down payment and closing costs and are applied at closing.

"Down payment and closing costs remain real barriers for many households that are ready to buy a home," said Katie Naftzger, SVP and Community Investment Officer at FHLBank Chicago. "By committing additional DPP funding, FHLBank Chicago is helping our members deliver direct, practical support to more homebuyers across Illinois and Wisconsin."

The additional commitment increases total 2026 DPP program funding to $48 million, expanding the capacity of participating member financial institutions to help eligible homebuyers access forgivable grant assistance for down payment and closing costs.

Members are already putting DPP funding to work in communities across Illinois and Wisconsin. Through the first half of 2026, participating members had disbursed over $19 million in DPP funding to support over 2,000 homebuyers.

Since launching the DPP program in 1994, FHLBank Chicago has allocated more than $330 million in down payment assistance, helping more than 51,000 households across Illinois and Wisconsin achieve homeownership. A significant majority of grants have supported first-time homebuyers, reinforcing the program's longstanding role in expanding access to homeownership throughout the district.

Learn more about the Downpayment Plus programs at fhlbc.com/DPP.

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.

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"By committing additional DPP funding, FHLBank Chicago is helping our members deliver direct, practical support to more homebuyers across Illinois and Wisconsin." - Katie Naftzger, SVP and Community Investment Officer, FHLBank Chicago