See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 16, 2026
Homebuyer Programs in Oswego, IL (2026)
Oswego is a fast-growing village of about 36,000 residents in Kendall County along the Fox River, about 45 miles southwest of Chicago. The median home price in Oswego is around $362,000, reflecting strong demand in one of Illinois's fastest-growing counties. While Oswego does not currently offer a village-administered down payment assistance program, buyers here can combine several powerful state and regional programs: IHDAccess Home provides up to $15,000 (6% of purchase price), IHDA Access Forgivable adds 4% of purchase price up to $6,000 that is forgiven over 10 years, and the FHLBank Chicago Downpayment Plus (DPP) program offers up to $10,000 as a forgivable grant through participating lenders. Kendall County's borrower income limit for these programs is $158,880 annually. Fox Valley Habitat for Humanity (serving Southern Kane and Northern Kendall counties) actively builds affordable homes in the Oswego area, and stacking these programs can cover most or all of a first-time buyer's upfront costs.
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount) | No | View → |
| IHDA Access Deferred | Deferred Loan | — | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | — | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | — | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | — | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | — | Yes | View → |
| IHDAccess Home | Deferred Loan | — | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | — | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount)
- First-time only:
- No
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- First-time only:
- Yes
- Type:
- Tax Credit
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- 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 → |
| 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:
- 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 |
|---|---|---|---|---|
| Fox Valley Habitat for Humanity | Zero-Interest Loan | Below-market home with 0% interest Habitat mortgage | No | View → |
| The Neighbor Project (formerly Joseph Corporation) | Grant | Homebuyer education, counseling, and matched savings / IDA programs for Aurora-area families | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Below-market home with 0% interest Habitat mortgage
- First-time only:
- No
- Type:
- Grant
- Amount:
- Homebuyer education, counseling, and matched savings / IDA programs for Aurora-area families
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most programs require first-time homebuyer status (no home ownership in the past 3 years) and income at or below Kendall County limits. For IHDA programs, the Kendall County income limit runs up to $158,880 depending on household size.
Step 2: Complete HUD-approved homebuyer education. The Neighbor Project in nearby Aurora offers HUD-approved homebuyer education, counseling, and matched savings programs for Fox Valley families. HUD-certified counseling is required for IHDA programs.
Step 3: Get pre-approved with an IHDA-approved lender. More than 160 lenders in Illinois participate in IHDA programs. Pre-approval tells you how much you can borrow and whether you qualify for Access Forgivable, Access Deferred, or IHDAccess Home.
Step 4: Ask about FHLBank Chicago Downpayment Plus. This up-to-$10,000 forgivable grant is only available through FHLBank Chicago member banks and credit unions. Your lender can tell you if they participate.
Step 5: Find a home within Oswego that meets program purchase price limits. With a median price of $362,000, most single-family homes in Oswego fit within IHDA limits, but verify with your lender before writing an offer.
Step 6: Submit your application with a contract in hand. Once under contract, your lender processes the IHDA and FHLBank grants alongside your first mortgage. Closing typically happens within 30–60 days.
Frequently Asked Questions
How much down payment assistance can I get in Oswego?+−
Do I have to be a first-time homebuyer?+−
Does Oswego have its own down payment assistance program?+−
What is the maximum home price in these programs?+−
What homebuyer education is required?+−
Is Habitat for Humanity active in Oswego?+−
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