Down Payment Assistance
The down payment doesn't have to be yours.
State, county, and local programs that provide grants or low/no-interest second loans to help cover down payment and closing costs — often the difference between renting and owning for qualified buyers. Down payment assistance (DPA) is layered on top of an eligible first mortgage (FHA, conventional, VA, or USDA) as a grant, a forgivable loan, or a low-interest second mortgage — program structure and amount vary by state, county, and sometimes employer or profession-specific programs (teachers, first responders, healthcare workers).
Program Highlights
- Illinois and Chicago-area buyers have access to multiple state and local DPA programs — specific program fit depends on income, purchase price, and property location
- Assistance can come as an outright grant, a forgivable loan (forgiven after a set residency period), or a repayable low-interest second loan
- Often paired with FHA financing, though conventional and other first-mortgage types may qualify depending on the program
- Income limits and purchase price caps apply and vary by program and county
- Homebuyer education course is commonly required
- Can sometimes be combined with employer-specific or profession-specific assistance programs
Best For
- First-time buyers (often defined as no ownership in 3 years)
- Buyers within program income and purchase-price limits
- Illinois and Chicago-area buyers layering aid onto FHA or conventional
What You'll Need to Qualify
- Income limits and purchase price caps vary by program and county
- Homebuyer education course commonly required
- Property must be your primary residence
- Paired with an eligible first mortgage (FHA, conventional, etc.)
Guidelines vary by lender and borrower profile. All loans subject to underwriting approval. Not a commitment to lend.
Good to Know
DPA programs change frequently and availability depends on funding cycles — the right program for a given buyer depends on their specific income, location, and first-mortgage type, so this is best worked out together rather than assumed from a general list.
Common Questions
Do I have to be a first-time buyer?
Many programs require it (often defined as not owning a home in the past 3 years), but some programs are open to repeat buyers too.
Is the assistance money I have to pay back?
It depends on the program — some are outright grants, some are forgiven after a residency period, and some are repayable low-interest loans.
Can I combine this with FHA or conventional financing?
Yes — DPA is typically layered on top of an eligible first mortgage rather than used on its own.