How to Finance Your First Property in Chicago: Loans, Grants & Tips

Buying your first home in Chicago is an exciting milestone—but it can also feel overwhelming, especially when it comes to financing. Fortunately, Chicago and Illinois offer a range of homebuyer assistance programs to help you overcome financial barriers. In this guide, we’ll walk you through the best loans, grants, and tips for first-time buyers in Chicago in 2025.

1. First-Time Homebuyer Loans in Chicago

IHDA Loan Programs

The Illinois Housing Development Authority (IHDA) offers mortgage programs like IHDAccess Forgivable and IHDAccess Deferred, which come with down payment assistance of up to $10,000.

FHA Loans

FHA loans offer lower credit score requirements and down payments as low as 3.5%, making them a solid option for first-time homebuyers.

Conventional 97 Loan

This Fannie Mae program allows you to purchase with just 3% down and may offer lower mortgage insurance costs than FHA loans.

2. Down Payment Assistance Grants

City of Chicago Home Buyer Assistance

Offers up to 7% of the loan amount to cover down payment or closing costs. Must use an approved lender and buy within Chicago limits.

Cook County Down Payment Pilot

Eligible buyers may receive up to $25,000 or 5% of the purchase price in assistance for down payment and closing costs.

NHS Purchase Assistance

Neighborhood Housing Services offers grants and counseling services for buyers in targeted areas of Chicago.

3. Additional Support Programs

CHA Down Payment Assistance

Current CHA residents may qualify for $10,000–$20,000 in assistance when buying their first home.

FHLBC Downpayment Plus®

Federal Home Loan Bank of Chicago offers forgivable grants via partner lenders, typically forgiven after 5 years of occupancy.

Wintrust Mortgage DPA

Wintrust and other banks offer proprietary grants and competitive loan products for eligible first-time buyers in Chicago.

4. Tips for First-Time Buyers in Chicago

  • Get Pre-Approved Early: Know your budget and strengthen your offer.
  • Work with a Local Realtor: Chicago agents understand local incentives and zoning.
  • Use HUD-Approved Counseling: Get guidance on grants and credit readiness.
  • Explore Off-Market Deals: Some homes in grant-eligible areas may be unlisted.
  • Budget for Taxes: Property taxes in Chicago vary significantly by neighborhood.

Conclusion

Buying your first home in Chicago doesn’t have to be financially stressful. With the right combination of grants, loans, and strategic planning, you can make your dream of homeownership a reality. Explore the programs above, connect with local experts, and take your first step confidently into Chicago’s real estate market.