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Home Purchase Assistance Program


The City of Chicago's Home Purchase Assistance Program Can Help.

Chicago is a city of neighborhoods filled with great housing. Whether it’s a bungalow or condominium that suits your needs, there are many homes for sale and now is a great time to buy.

The City of Chicago’s Home Purchase Assistance Program helps bridge the gap for buyers who may lack the money to make a down payment and cover closing costs.

 Alert: This program is no longer available.

What Is It?

The Home Purchase Assistance (HPA) is a housing program that offers funds for principal reduction and closing costs assistance to income eligible** first time homebuyer(s) in purchasing a residential property in the city of Chicago.

The amount of assistance ranges from $10,000 to $40,000 depending on household gross income (see income limits chart below).

What Types of Houses Are Eligible?

This program works for many housing types:

  • Single family homes
  • Town homes
  • Condominiums
  • Small Apartment Buildings (2 to 4 unit properties that are owner-occupied)

What are the program requirements and guidelines?

  • Homebuyer(s) must purchase residential properties located in the city of Chicago consisting of one to four units (must be occupied by the owner).
  • HPA eligible funds will not exceed 25% of the base sales/purchase price or home.
  • Homebuyer(s) housing debt (principle, interest, taxes, hazard insurance, and assessments), cannot exceed 33% of household’s monthly gross earnings
  • Homebuyer(s) must have 3% of own funds toward the down payment on property.
  • The City will execute a junior mortgage which will take a second lien position to their first mortgage.
  • Homebuyer(s) must occupy the property during the specified term of the executed City junior mortgage agreement (to be signed at time of closing).

How Do I Apply for the Money?

  • Obtain a pre-approval for a fixed-rate mortgage with a lender
  • Submit an application and EDS forms
  • Attend and complete pre-purchase homeownership counseling at a HUDcertified agency approved by the City. (A separate certificate of training is required when purchasing a condominium.) Housing Counseling Centers
  • Identify a Property
  • Follow other steps as required after filing application

Do I Have to Repay the Money?

Certain restrictions apply. If the buyer lives in the home for the entire term of the agreement that is required under the program, then no money is owed to the City. If the home is sold before that time, then the buyer would be required to pay back the city a portion of the assistance. The City will execute a junior mortgage with a term ranging from 5 to 30 years, depending on amount of assistance.

For Income Limit Information Click AMI

Income Limits are based on the Chicago-Naperville-Joliet, IL HUD Metro Area (HMFA) median family income of $74,900 as adjusted by HUD. Effective June 2011 or until superseded

Download HPA Brochure

**All buyers must meet income and purchase price requirements. The Home Purchase Assistance Program cannot be used in conjunction with other home buyer assistance programs.

Homebuyers will be required to pay an application and processing fee up to $750 due at the time of closing to the Department of Housing and Economic Development.