Buying a home in Chicago is possible-even if you don’t have 20% saved up. The city offers more than a dozen down payment assistance programs designed specifically for first-time buyers, teachers, nurses, and working families. These aren’t loans you’ll repay with interest. Most are grants or forgivable loans that vanish after you live in the home for a few years. You don’t need to be rich. You don’t need perfect credit. You just need to know where to look.
How Chicago’s Down Payment Programs Actually Work
Most programs in Chicago give you money you don’t have to pay back-up to $25,000. That’s enough to cover closing costs or help you reach a 3% or 5% down payment on a $300,000 home. The catch? You have to live in the home as your primary residence for at least five years. If you sell or move out before then, you might have to repay part of the grant. The money comes from federal funds, city budgets, and nonprofit partners. It’s not magic. It’s policy.
These programs target people who earn too much to qualify for Section 8 housing but too little to save $15,000 on their own. A nurse in Logan Square, a teacher in Englewood, a welder in South Deering-these are the folks these programs were built for. You don’t need a fancy job. You just need to be willing to put roots down.
Top 5 Programs You Can Apply For Right Now
Not all programs are the same. Some are city-run. Others are run by nonprofits or state agencies. Here are the five most accessible options in 2026:
- Chicago Homebuyer Assistance Program (CHAP) - Offers up to $20,000 as a grant for buyers earning under 120% of the area median income. No repayment if you stay five years. Available for homes in all 77 Chicago neighborhoods.
- Illinois Housing Development Authority (IHDA) MyHome Program - Provides up to $15,000 in down payment help. Works with FHA, VA, and conventional loans. Requires a homebuyer education course, which you can take online for free.
- Chicago Community Land Trust (CCLT) Program - For buyers in underserved areas like North Lawndale or Austin. Gives up to $25,000. The land trust owns the land, you own the house. Lower monthly payments. No credit score minimum.
- Chicago Public Schools Teacher Housing Program - If you teach in CPS, you can get $10,000 toward your down payment. You must buy in a CPS-designated neighborhood and commit to teaching for at least three years.
- Chicago Firefighter and Police Officer Program - First responders get $15,000 in assistance. Must buy within city limits. No income cap. Priority given to those who’ve served at least two years.
Each program has its own rules, but they all share one thing: you must work with an approved lender. You can’t just walk into a bank and ask. You need to start with a housing counselor.
Who Qualifies? Income Limits and Eligibility Rules
In 2026, the area median income (AMI) for Chicago is $92,000 for a family of four. Most programs cap eligibility at 80% to 120% of that. That means:
- A single person making $73,600 or less qualifies for most programs.
- A two-person household making $83,700 or less is eligible.
- A family of four can earn up to $110,400 and still qualify.
You also need to be a first-time homebuyer. The IRS defines this as someone who hasn’t owned a home in the last three years. That includes co-owners. If you owned a house with an ex-spouse, you’re not eligible unless it’s been more than three years since your last ownership.
There’s no minimum credit score for some programs, like CCLT. Others require a 640 or higher. The IHDA MyHome Program accepts scores as low as 620 with a counseling certificate. Don’t assume you’re out. Even if your score is in the 600s, you still have options.
What Happens After You Get Approved?
Getting approved doesn’t mean you’re done. The real work starts after you sign the paperwork.
- You’ll be assigned a housing counselor. They’ll walk you through the entire process-from finding a home to closing.
- You’ll need to complete a homebuyer education course. It’s usually 6 to 8 hours long. Many are free and offered online by HUD-approved agencies like Chicago Housing Partnership.
- You’ll need to pick a home within the program’s price limit. For CHAP, it’s $450,000. For IHDA, it’s $500,000.
- You’ll have to use a participating lender. You can’t just use any bank. Check the program’s website for their lender list.
- At closing, the grant money is applied directly to your down payment or closing costs. You never see it in cash.
It’s not a fast process. It takes 60 to 90 days from application to closing. But if you’re patient, the savings are real. One buyer in West Humboldt Park used CHAP and IHDA together to cut her down payment from $24,000 to $4,500. She’s been in her home for three years now. She’s saving $600 a month compared to renting.
Common Mistakes People Make
Most applicants get rejected not because they’re ineligible-but because they mess up the details.
- Waiting too long - Applications open year-round, but funds run out. Some programs have waiting lists. Apply early.
- Choosing the wrong home - You can’t buy a condo in Lincoln Park if your program only allows homes in certain ZIP codes. Check the eligible areas before you start looking.
- Ignoring the credit check - Even if the grant doesn’t require good credit, your mortgage lender does. Fix errors on your credit report before you apply.
- Skipping counseling - It’s mandatory. Skipping it means automatic rejection. Take the course. It’s free. It’s helpful.
- Assuming you need 20% - You don’t. Most programs are built for 3% to 5% down. FHA loans allow 3.5%. You’re not behind. You’re on track.
Where to Start Today
You don’t need to call 10 agencies. Start here:
- Visit chicago.gov/housing - The city’s official portal. Lists all programs, income limits, and application links.
- Call the Chicago Housing Partnership at 312-747-1234 - They offer free one-on-one counseling. No appointment needed. Walk-ins welcome.
- Go to ihda.org/myhome - For the state’s MyHome Program. Download the checklist. Fill out the pre-qualification form.
- Ask your real estate agent if they’ve worked with down payment programs. If they haven’t, find one who has. The right agent can save you weeks.
There’s no deadline. No lottery. No secret handshake. If you meet the income limits, live in Chicago, and are ready to commit to a home, you qualify. The money is there. You just have to ask for it.
Can I use down payment assistance with an FHA loan?
Yes. Most Chicago down payment programs, including IHDA MyHome and CHAP, are designed to work with FHA loans. FHA loans require only 3.5% down, and the assistance grant can cover that entire amount. Many buyers combine FHA financing with a $15,000 grant to buy a home with little to no cash out of pocket.
Do I have to be a first-time buyer to qualify?
Almost all programs require you to be a first-time homebuyer, which means you haven’t owned a home in the past three years. There are rare exceptions-for example, if you’re a veteran who owned a home with a former spouse and haven’t owned since. But in general, if you owned property in the last 36 months, you won’t qualify.
Can I use assistance for a condo or townhouse?
It depends on the program. CHAP and IHDA MyHome allow condos and townhouses as long as they’re in eligible neighborhoods and meet the price cap. The Chicago Community Land Trust only works with single-family homes. Always check the property type rules before you start looking.
What if I make too much money for these programs?
If you earn above 120% of the area median income ($110,400 for a family of four), you won’t qualify for grants. But you might still be eligible for low-interest second mortgages or tax credits through the Illinois Housing Development Authority. These aren’t grants, but they reduce your monthly payments. Talk to a housing counselor-they’ll know what’s available.
How long does it take to get approved?
It usually takes 4 to 8 weeks from the time you submit your application to approval. After approval, finding a home and closing can take another 6 to 12 weeks. Start early. Don’t wait until you’ve found your dream home. Get approved first, then start looking.