Down Payment Assistance in Illinois

What is down payment assistance in Illinois?

Illinois home prices stay relatively modest outside the Chicago core, and from small river towns to growing suburbs, the right down payment assistance can put homeownership well within reach across much of the state.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the shores of Lake Michigan to the farmland of southern Illinois, Illinois homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Illinois or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Illinois

The Illinois Housing Development Authority (IHDA) is the state’s housing finance agency and the central source for statewide DPA programs. IHDA doesn’t lend directly to buyers. Homebuyers apply through an IHDA-approved participating lender, which will combine the assistance with the mortgage.

IHDA down payment assistance programs

IHDA offers mortgage products that can be combined with down payment and closing costs assistance. They offer the following DPA programs:

IHDAccess Home Mortgage: This program offers 6% of the purchase price up to $15,000 in down payment or closing costs assistance. The funds are provided as an interest-free loan, deferred for the life of your mortgage. Repayment of the loan is required when the house is sold, refinanced, or you pay off your mortgage.

Program details include the following:

• Homebuyer and their spouse must be first-time homebuyer (or exempt)
• Must meet household income and purchase price limits
• Minimum credit score of 640
• Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater
• Eligible in all Illinois counties
• Must live in the home as the primary residence
• Available for FHA, VA, USDA, or FNMA HFA Preferred loan types
• Homebuyer must complete a homeowner education course
• Must work with an IHDA-approved lender only

IHDAccess Forgivable Mortgage: This program offers 4% of the purchase price up to $6,000 in down payment or closing cost assistance. The funds are forgiven monthly over 10 years. The loan does not need to be repaid.

Program details include the following:

• Available for all mortgage types, including FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage
• Available to first-time and repeat homebuyers
• Must meet household income and purchase price limits
• Minimum credit score of 640
• Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater
• Eligible in all Illinois counties
• Must live in the home as the primary residence
• Homebuyer must complete a homeowner education course

IHDAccess Deferred Mortgage: This program offers 5% of the purchase price up to $7,500 in down payment or closing costs assistance. The funds are provided as an interest-free loan, deferred for the life of the mortgage. Repayment of the loan is required when the house is sold, refinanced, or you pay off your mortgage.

Program details include the following:

• Available for all mortgage types, including FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage
• Available to first-time and repeat homebuyers
• Must meet household income and purchase price limits
• Minimum credit score of 640
• Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater
• Eligible in all Illinois counties
• Must live in the home as the primary residence
• Homebuyer must complete a homeowner education course

IHDAccess Repayable Mortgage: This program offers 10% of the purchase price up to $10,000 in down payment or closing costs assistance. The funds are provided as an interest-free loan, repaid monthly over a 10-year period.

Program details include the following:

• Available for all mortgage types, including FHA, VA, USDA, Fannie Mae HFA Preferred, and Freddie Mac HFA Advantage
• Available to first-time and repeat homebuyers
• Must meet household income and purchase price limits
• Minimum credit score of 640
• Buyer must contribute $1,000 or 1% of the purchase price, whichever is greater
• Eligible in all Illinois counties
• Must live in the home as the primary residence
• Homebuyer must complete a homeowner education course

Beyond IHDA’s statewide programs, several Illinois cities and counties have established their own DPA programs. Many of these can be stacked with IHDA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Cook County down payment assistance program

Cook County is home to Chicago and a sprawling mix of suburbs across the region. From the city’s iconic skyline and lakefront to family-friendly towns like Evanston and Oak Park, the county gives buyers a wide range of options backed by a strong job market. (Counties like this are typically part of a larger metropolitan area — in this case, Greater Chicago.)

Cook County down payment assistance program includes:

Down Payment Assistance Program: This down payment assistance program provides 5% of the home’s final first loan amount, up to $25,000 as a 5-year forgivable loan. The loan does not require monthly payments and is fully forgiven on the 5-year anniversary date, as long as one borrower continues to live in the home as the primary residence. Full repayment is required if the home is sold or refinanced before the five-year anniversary.  

Program details include the following:

• It may be used to cover closing costs, down payment, and an interest rate buydown.
• First-time and repeat buyers eligible
• First-time homebuyers must complete homebuyer education course
• Household income must be at or below 120% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• For buyers purchasing in Disproportionately Impacted Areas or Qualified Census Tracts, there is no income limit
• Minimum credit score of 600

Funds are limited and awarded on a first-come, first-served basis until fully allocated.

Chicago down payment assistance program

Chicago is Illinois’ largest metropolitan area, known for its iconic skyline, deep dish pizza, and a lakefront that stretches for miles along Lake Michigan. A strong job market, paired with distinct neighborhoods full of character, keeps drawing buyers who want big-city energy with a lower cost of living than the coasts. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Chicago down payment assistance program includes:

Building Neighborhoods and Affordable Homes Program (BNAH): The program offers up to $100,000 in grant funding to income-eligible buyers looking to purchase newly constructed single-family residential buildings, containing no more than four dwelling units.

Program details include:

• Homes must have been built pursuant to city of Chicago land sale redevelopment agreement and located in a city-wide area
• Household income cannot exceed 140% of the AMI
• Buyers must live in one of the dwelling units as their primary residence for a minimum of 10 years
• Grant amount is provided on a scale based on AMI and neighborhood residency
• Funds can be used toward filling an appraisal gap, closing costs, down payment assistance, senior loan principal reduction, appraisals, inspections, pre-paid interest/points, one-year pre-paid insurance

Aurora down payment assistance program

Aurora sits about 40 miles west of Chicago, offering more affordable housing while staying within reach of the city’s job market. Its historic downtown blends older architecture with growing entertainment options, including riverfront casinos and a steady stream of new restaurants.

Aurora down payment assistance program includes:

Choose Aurora Homebuyer Assistance Program: The program provides up to $27,000 in down payment and closing cost assistance for income-eligible homebuyers within the city of Aurora. Buyers can receive $20,000 as a zero-interest, deferred loan, and $7,000 as two separate grants. The amount of assistance is based on household income.

Program requirements include:

• The deferred loan does not need to be repaid until the home is no longer the buyer’s primary residence, is sold, transferred, or is refinanced
• Both the $5,000 Closing Costs Grant and the $2,000 Small Repairs Grant are non-repayable
• Eligible properties include single-family, condos, and townhomes located within the Aurora city limits
• Must meet household income requirements
• Can be combined with 30-year fixed FHA or Conventional mortgage loan
• Satisfactory home inspection is required
• Completion of HUD-approved homebuyer education counseling

These are the main down payment assistance programs available across Illinois. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Illinois down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at ihda.org. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. IDHA programs are only available through approved lenders in their network.  
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Illinois property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Illinois down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}