See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 15, 2026
Homebuyer Programs in Chicago, IL (2026)
Chicago is the largest city in Illinois and one of the most program-rich homebuying markets in the Midwest, with a median home price around 0,000 as of 2026. First-time buyers in Chicago can combine state and local assistance in meaningful ways: Illinois Housing Development Authority (IHDA) launched IHDAccess Home in March 2026, offering up to ,000 in 0% interest deferred down payment and closing cost assistance, and also runs Access Forgivable (up to ,000 forgiven over 10 years), Access Deferred (up to ,500), Access Repayable (up to ,000), and the Opening Doors program (,000 forgivable after 5 years). At the city level, the Chicago Department of Housing offers the Building Neighborhoods and Affordable Homes (BNAH) program with up to 0,000 in purchase price assistance in five targeted neighborhoods, plus the TaxSmart Mortgage Credit Certificate giving a 25% federal tax credit on mortgage interest. Nonprofits like Here to Stay Community Land Trust, the Chicago Housing Trust, and Habitat for Humanity Chicago offer permanently affordable homeownership pathways, and FHLBank Chicago's Downpayment Plus program provides up to ,000 in forgivable grants through participating lenders. Stacking an IHDA DPA with a TaxSmart MCC and a lender-level DPP grant can produce significant savings for an eligible Chicago buyer.
City Programs in Chicago
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Building Neighborhoods and Affordable Homes (BNAH) | Forgivable Loan | Up to 0,000 in purchase price assistance | No | View → |
| CHA Choose to Own (CTO) Homeownership Program | Silent Second Mortgage | Monthly Housing Assistance Payment (HAP) toward mortgage for up to 15 years (30 years for elderly/disabled) | Yes | View → |
| Chicago Housing Trust | Silent Second Mortgage | Below-market home prices; preserves long-term affordability | Yes | View → |
| TaxSmart MCC Series 2026 | Tax Credit | Federal tax credit: 25% of annual mortgage interest (50% for improvement/rehab loans) | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 0,000 in purchase price assistance
- First-time only:
- No
- Type:
- Silent Second Mortgage
- Amount:
- Monthly Housing Assistance Payment (HAP) toward mortgage for up to 15 years (30 years for elderly/disabled)
- First-time only:
- Yes
- Type:
- Silent Second Mortgage
- Amount:
- Below-market home prices; preserves long-term affordability
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Federal tax credit: 25% of annual mortgage interest (50% for improvement/rehab loans)
- First-time only:
- Yes
County Programs in Cook County
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Cook County Down Payment Assistance Program | Forgivable Loan | 5% of home sale price up to ,000 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- 5% of home sale price up to ,000
- First-time only:
- No
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to ,000 | No | View → |
| IHDA Access Deferred | Deferred Loan | 5% of purchase price up to ,500 | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | 4% of purchase price up to ,000 | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | 10% of purchase price up to ,000 | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | Federal tax credit: 25% of annual mortgage interest (capped at ,000/year) | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | ,000 DPA plus up to ,000 toward student loan payoff | Yes | View → |
| IHDAccess Home | Deferred Loan | Up to ,000 (6% of purchase price) | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | Up to ,000 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to ,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- 5% of purchase price up to ,500
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- 4% of purchase price up to ,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- 10% of purchase price up to ,000
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Federal tax credit: 25% of annual mortgage interest (capped at ,000/year)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- ,000 DPA plus up to ,000 toward student loan payoff
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to ,000 (6% of purchase price)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to ,000
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity Chicago | Zero-Interest Loan | Below-market home with 0% interest mortgage | Yes | View → |
| Here to Stay Community Land Trust | Silent Second Mortgage | Below-market home prices through CLT model | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Below-market home with 0% interest mortgage
- First-time only:
- Yes
- Type:
- Silent Second Mortgage
- Amount:
- Below-market home prices through CLT model
- First-time only:
- Yes
How to Apply
Check your eligibility. IHDA programs generally require household income within county limits (Cook County cap is 7,885 for IHDAccess Home) and a minimum credit score of 640. City and nonprofit programs have their own income rules, typically set at 80-140% of Area Median Income.
Complete homebuyer education. IHDA-approved online courses are available through eHome America and Framework. For in-person counseling, contact Neighborhood Housing Services of Chicago at (773) 329-4111 or Housing Action Illinois-affiliated HUD-approved agencies.
Connect with a local housing partner. Neighborhood Housing Services of Chicago, Here to Stay Community Land Trust, Habitat for Humanity Chicago, and the Chicago Housing Trust each have their own application process. Reach out early to understand program availability.
Get pre-approved with an IHDA-approved lender. IHDA's network includes 160+ lenders statewide. For the TaxSmart MCC, choose a TaxSmart-participating lender. For Downpayment Plus, choose a participating FHLBank Chicago member bank or credit union.
Find a home within program limits. BNAH targets five specific neighborhoods (Englewood Square, North Lawndale, South Lawndale, Humboldt Park/Garfield Park, and Woodlawn). TaxSmart requires Chicago city limits. Cook County DPA applies countywide (when funded).
Reserve your assistance funds. Most DPA programs operate on a first-come, first-served basis, so reservations happen after pre-approval but before the contract. Your lender handles the reservation on your behalf.
Close on your home. Most DPA and MCC funds are applied at closing. Confirm final numbers and lien filings with your lender and closing attorney before signing.