Expanding Access to Homeownership Through Down Payment Assistance
Rising home prices, persistent inventory shortages, and elevated upfront purchasing costs have continued to reshape the path to homeownership across the Midwest. In response to these affordability pressures, the Federal Home Loan Bank of Chicago delivered $43 million in down payment assistance during 2025 to support more than 4,500 households throughout the states of Illinois and Wisconsin. The funding was distributed through member financial institutions participating in the Downpayment Plus® and Downpayment Plus Advantage® programs, both of which are designed to help income-eligible buyers overcome the financial hurdles associated with purchasing a home.
These grants targeted one of the most persistent barriers to homeownership: the upfront costs required at closing. Even households that are financially stable and capable of handling monthly mortgage payments frequently struggle to save enough to cover down payments and closing expenses. The funding provided by the bank helped bridge this affordability gap, enabling thousands of buyers to transition from renting to owning.
Addressing Affordability Challenges for First-Time Buyers
Housing affordability challenges have intensified in recent years due to higher interest rates, increased home prices, and limited housing supply. These factors have made it particularly difficult for first-time and moderate-income buyers to enter the housing market. The assistance provided through the DPP programs specifically targeted this demographic, recognizing that many prospective homeowners possess the financial stability to sustain mortgage payments but lack the upfront capital required to finalize a purchase.
The grants were delivered through partnerships with member banks and credit unions that worked directly with homebuyers. By leveraging these relationships, the assistance could be integrated seamlessly into the mortgage process and applied at closing, providing immediate financial relief when it was needed most.
Demand for down payment assistance has continued to rise alongside affordability pressures. The continued expansion of the DPP programs reflects both the growing need for such initiatives and the increasing recognition of the role these programs play in expanding access to homeownership opportunities.
Structure and Benefits of Downpayment Plus Programs
Through the DPP and DPP Advantage programs, eligible households could receive up to $10,000 in forgivable grant assistance. These funds were applied directly to down payments and closing costs at the time of purchase, reducing the financial burden on buyers during one of the most expensive stages of the homebuying process.
The forgivable nature of the grant assistance is a key feature of the programs. Rather than functioning as a loan that must be repaid, the assistance becomes fully forgivable after the homeowner meets certain occupancy and program requirements. This structure ensures that the funding serves as true financial support rather than additional debt.
The DPP Advantage program expanded the reach of the assistance by incorporating nonprofit-led mortgage initiatives. Nonprofit organizations partner with FHLBank Chicago member institutions to secure funding for buyers participating in their programs. This collaboration allows community-based organizations to extend their impact and connect more households with homeownership opportunities.
Community-Based Partnerships Driving Local Impact
The delivery of down payment assistance is rooted in partnerships between the bank and its member institutions. These collaborations enable the funding to reach communities quickly and efficiently. Financial institutions play a critical role in identifying eligible borrowers, guiding them through the application process, and ensuring the grants are applied at closing.
This partnership model ensures that the assistance reaches households that are ready and qualified to purchase a home but need additional financial support to complete the transaction. By working directly with lenders and nonprofits embedded in their communities, the program ensures that resources are distributed where they are most needed.
Impact Delivered by Novus Home Mortgage
One of the participating institutions, Novus Home Mortgage, a division of Ixonia Bank, demonstrated the significant impact of the DPP programs in 2025. Based in Brookfield, Wisconsin, the organization helped more than 160 households purchase homes during the year, disbursing nearly $1.1 million in DPP grants.
A notable 95 percent of the recipients assisted by Novus Home Mortgage were first-time homebuyers. This statistic highlights the central role the program plays in enabling individuals and families to purchase their first homes. Many of these buyers had the financial stability required to maintain mortgage payments but lacked sufficient savings to cover upfront costs.
Since joining the program in 2015, Ixonia Bank has provided more than $2.8 million in down payment assistance to over 400 households. The long-term participation of the institution underscores the sustained value and ongoing demand for the DPP programs within local communities.
The Role of Financial Institutions in Expanding Access
Financial institutions participating in the DPP programs serve as essential intermediaries between funding and households. Their involvement ensures that potential homeowners are aware of available resources and receive guidance throughout the homebuying journey.
By integrating grant funding into the mortgage process, lenders can offer buyers a more comprehensive financial solution. This collaboration not only benefits borrowers but also strengthens local housing markets by enabling more residents to purchase homes and invest in their communities.
The partnership between lenders and the Federal Home Loan Bank of Chicago represents a coordinated effort to address affordability challenges while promoting long-term financial stability for households.
Contributions from Citizens Equity First Credit Union
Another key contributor to the program’s success is Citizens Equity First Credit Union. Headquartered in Peoria, Illinois, CEFCU disbursed $1 million in DPP grants during 2025, assisting more than 100 households in achieving homeownership. Many of these recipients were first-time buyers seeking to establish financial stability and build equity.
CEFCU has been an active participant in the program since 2000, delivering more than $7.3 million in down payment assistance to over 1,100 households. The long-standing involvement of the credit union highlights the enduring value of the program and the consistent demand for assistance among its members.
The organization’s commitment to helping families achieve homeownership reflects the broader mission shared by many participating institutions: enabling individuals and families to build long-term financial security through property ownership.
Strengthening Financial Stability Through Homeownership
Homeownership is widely recognized as a cornerstone of financial stability and wealth-building. By helping households transition from renting to owning, the DPP programs contribute to long-term economic resilience at both the individual and community levels.
Owning a home provides opportunities for equity accumulation, financial planning, and generational wealth transfer. For many households, the ability to purchase a home represents a significant milestone that can influence long-term financial outcomes.
The grants distributed through the DPP programs enable households to access these opportunities sooner, reducing the time required to save for a down payment and helping buyers enter the market at a critical stage in their financial journey.
Long-Term Reach and Historical Program Impact
Since the launch of the Downpayment Plus programs in 1994, the Federal Home Loan Bank of Chicago has allocated more than $330 million in funding to support homebuyers. Over that period, the programs have helped more than 51,000 households purchase homes across the bank’s district.
A significant proportion of these recipients have been first-time homebuyers, underscoring the program’s role in expanding access to homeownership for individuals and families entering the housing market for the first time.
The cumulative impact of the program demonstrates how sustained investment in down payment assistance can transform housing markets and improve access to homeownership over time.
Encouraging Continued Participation and Funding Utilization
With $31 million available for 2026, the Federal Home Loan Bank of Chicago continues to encourage its member institutions and nonprofit partners to leverage the DPP programs. The availability of additional funding ensures that the initiative can continue supporting households facing affordability challenges.
Member institutions play a key role in maximizing the reach of the program by promoting awareness, identifying eligible buyers, and integrating grant funding into their mortgage offerings. Continued participation and collaboration remain essential to the program’s ongoing success.
Supporting Communities Through Collaborative Housing Solutions
The DPP programs represent a collaborative approach to addressing housing affordability challenges. By combining the resources of a regional Federal Home Loan Bank, local financial institutions, and nonprofit organizations, the initiative creates a comprehensive support network for homebuyers.
This collaboration enables funding to reach households efficiently while ensuring that buyers receive guidance and support throughout the purchasing process. The result is a scalable model that strengthens communities and expands access to housing opportunities across the region.
About the Federal Home Loan Bank of Chicago
FHLBank Chicago is a regional bank in the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to ensure access to low-cost funding for their member financial institutions, with a focus on providing solutions that support the housing and community development needs of members’ customers. FHLBank Chicago is a self-capitalizing cooperative, owned by its Illinois and Wisconsin members, including commercial banks, credit unions, insurance companies, savings institutions and community development financial institutions. To learn more about FHLBank Chicago, please visit fhlbc.com.
About Novus Home Mortgage
Established in 2019 Novus Home Mortgage is a division of Ixonia Bank. Headquartered in the Greater Milwaukee area and originating in all 50 states, Novus is committed to creating a simpler, more efficient, and more transparent mortgage process. It leverages the industry’s most innovative technology to provide 24/7 transparency, streamline the entire process, and minimize effort for all parties. Novus delivers exceptional customer service, along with an extensive offering of loan products ranging from FHA, VA, and conventional loans to niche products. For more information, visit www.novushomemortgage.com. NMLS # 423065. Equal Housing Lender.
About Citizens Equity First Credit Union
With assets totaling more than $8.4 billion, CEFCU serves over 420,000 members through 26 Member Centers in Illinois, 7 California Member Centers, the CEFCU Financial Center, the CEFCU ATM Network, CEFCU’s website — cefcu.com, the surcharge-free Co-op ATM Network, and the CU Service Center Shared Branch Network.
