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By Tyler Thompson · Licensed Real Estate Agent · Updated April 15, 2026

Homebuyer Programs in Waukegan, IL (2026)

Population: 87,168 | Median home price: $230,000 | Est. closing costs: $4,500 - $7,000

Skyline of Waukegan, IL

Waukegan sits on Lake Michigan about 40 miles north of downtown Chicago and serves as the Lake County seat. The median home price is around $230,000, and first-time buyers here benefit from one of the more robust Lake County DPA stacks in Illinois: Community Partners for Affordable Housing (CPAH) administers the Lake County Down Payment Assistance Program with up to $13,999 as a 0% deferred loan forgiven monthly over five years, and statewide IHDA programs including IHDAccess Home (up to $15,000) and IHDA Access Forgivable (up to $6,000) can be layered on top. Free HUD-approved homebuyer education is available through the Lake County Housing Authority, and Habitat for Humanity Lake County builds affordable homes across the county for income-qualified partner families. Combined, qualifying Waukegan buyers can bring $20,000 to $30,000 in stacked assistance to closing.

County Programs in Lake County

Lake County Down Payment Assistance Program (CPAH)
Type:
Deferred Loan
Amount:
Up to $13,999
First-time only:
Yes
Lake County Housing Authority HUD Homebuyer Counseling
Type:
Grant
Amount:
Free HUD-approved homebuyer education and pre-purchase counseling
First-time only:
No

State Programs in Illinois

FHLBank Chicago Downpayment Plus (DPP)
Type:
Grant
Amount:
Up to ,000
First-time only:
No
IHDA Access Deferred
Type:
Deferred Loan
Amount:
5% of purchase price up to ,500
First-time only:
Yes
IHDA Access Forgivable
Type:
Forgivable Loan
Amount:
4% of purchase price up to ,000
First-time only:
Yes
IHDA Access Repayable
Type:
Zero-Interest Loan
Amount:
10% of purchase price up to ,000
First-time only:
Yes
IHDA Mortgage Credit Certificate (MCC)
Type:
Tax Credit
Amount:
Federal tax credit: 25% of annual mortgage interest (capped at ,000/year)
First-time only:
Yes
IHDA SmartBuy
Type:
Forgivable Loan
Amount:
,000 DPA plus up to ,000 toward student loan payoff
First-time only:
Yes
IHDAccess Home
Type:
Deferred Loan
Amount:
Up to ,000 (6% of purchase price)
First-time only:
Yes
Opening Doors / Abriendo Puertas
Type:
Forgivable Loan
Amount:
Up to ,000
First-time only:
Yes

Federal Programs

FHA Loans
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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
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
HomeReady Mortgage (Fannie Mae)
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
HUD $100 Down Program
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
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
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

Habitat for Humanity Lake County Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable home with 0% interest mortgage (no down payment required)
First-time only:
No

How to Apply

Step 1:

Check your eligibility. CPAH's Lake County DPA is available to first-time buyers (or those who have not owned in the past three years) at or below 80% Area Median Income. IHDA programs have their own income and purchase price limits that update annually.

Step 2:

Complete HUD-approved homebuyer education. The Lake County Housing Authority offers FREE pre-purchase and homebuyer education through its HUD-certified counselors, and the certificate qualifies you for most federal, state, and private DPA programs.

Step 3:

Contact Community Partners for Affordable Housing (CPAH) to apply for the Lake County Down Payment Assistance Program. CPAH administers up to $13,999 as a 0% deferred loan forgiven 1/60th per month beginning 60 days after closing. Visit cpahousing.org or call CPAH to start.

Step 4:

Get pre-approved with an IHDA-participating lender. IHDA maintains a statewide lender directory at ihda.org. Your lender will determine which IHDA product (Access Home, Access Forgivable, Access Deferred, Access Repayable, or SmartBuy) fits best and whether it can layer with CPAH assistance.

Step 5:

Find a home in Lake County. The CPAH program covers homes located anywhere in Lake County, including Waukegan. IHDA has statewide purchase price limits your lender can confirm.

Step 6:

Submit your combined application. CPAH and IHDA assistance can often layer on the same transaction; both must be approved before closing. Plan for 30 to 60 days from contract to close.

Step 7:

Close and occupy. The CPAH loan forgives 1/60th per month over five years of owner-occupancy. IHDA forgivable assistance forgives monthly over 10 years. Keep the home as your primary residence to avoid repayment.

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