If you’re applying for your first mortgage, you may be eligible for a grant of up to $6,000 through the Federal Home Loan Bank of Chicago (FHLB). The subsidy may be used for down payment and closing cost assistance, home buyer education costs (up to $700), and/or eligible rehabilitation costs associated with the purchase of a home. This Downpayment Plus® (DPP®) grant will be provided by INB at the closing.
To be eligible, you must meet income and eligibility requirements, including:
- Your total household income may not exceed 80 percent of the area median income (based on income guidelines published annually by the U.S. Department of Housing and Human Development (HUD).
- You must contribute at least $1,000 toward the home purchase.
- You must attend pre-purchase home buyer counseling to ensure you understand the buying process as well as ownership responsibilities.
- You must use the home as your primary residence.
- You must sign a five-year retention agreement and agree to a lien on the property for the amount of the DPP grant. DPP grants are forgiven over a period of five years (1/60th per full month). In the event of property sale or removal of the Affordable Housing Program (AHP) lien prior to the end of the 5-year retention period, the homebuyer(s) must repay a pro rata of the grant.
- You must meet INB's loan underwriting criteria.
Funds for this program are limited and will be awarded on a first-come, first-served basis until the funds are depleted. To find out if you’re eligible for a DPP subsidy, contact your INB Mortgage Lender.