What is Down Payment Plus?
Downpayment Plus ("DPP") is a down payment and closing cost assistance program for low and moderate income home buyers, funded by the Federal Home Loan Bank of Chicago ("FHLBC"). Funds are available to FHLBC member financial institutions in Illinois.
Who is eligible to receive a Downpayment Plus grant?
The program is available to homebuyers with a combined annual household income at or below 80% of the median income of the area where the property is located, adjusted for family size. The borrower MUST contribute $1,000 toward the purchase of the home. The purchaser(s) must complete a homebuyer or homeowner counseling program prior to receiving the grant funds, and sign a certificate of eligibilty that certifies household income. The borrower does NOT have to be a first time homebuyer!
During our training there were a few questions that came about too. Please see below answers for those questions:)
Are all borrowers requried to take the homebuyer counseling? Yes.
Is the training available in Spanish? Yes, the RAAHC does provide the homebuyer counseling courses in English and Spanish.
Attached you will find a brief summary sheet of the program, borrower responsibility checklist, income limits and a flyer.
If you are going to utilize this program for one of your buyers we highly suggest that you set your contract dates for closing out a minimum of 45 to 60 days for closing. The FHLBC does need to review the file and this does add some additional time to the entire process. If we take this proactive approach it will eliminate the need to extend dates down the road.