“Down Payment Plus” Assistance Provides Cash For Home Buyers
Assistance for buyers who do not have quite enough liquid funds to purchase a new home.
A program offered by the Federal Home Loan Bank of Chicago called Down Payment Plus (DPP) offers a forgivable grant of up to $4,500 for qualified buyers. The DPP is a down payment and closing cost assistance program for very low-, low-, and moderate-income homebuyers who are purchasing new homes. Buyers must contribute a minimum of $1,500 from personal funds toward the purchase of the home to qualify for a DPP.
In addition, they must complete a home buyer counseling program prior to receiving grant funds. The DPP Program typically opens in the first calendar quarter and continues until funds are exhausted or until the program year ends.
- There are strict income limits.
- Buyers must have an annual household income at or below 80% of the HUD median income of the county in which the property is located, adjusted for household size, per the Income Calculation Guidelines.
- The income of each member of the household who is 18 years old or older will be used toward the calculation.
- The first mortgage loan term must be a minimum of five years. On adjustable-rate mortgages, the initial interest rate lock period must be a minimum of five years. Interest-only first mortgages are not eligible for the DPP program.
- Other restrictions limit properties to one or two-unit properties. The property must be purchased as the borrower’s primary residence.
- For the DPP program, the property may be in any state except New York and New Jersey.
- The property can be attached, detached, or a condominium.
- Manufactured homes titled as real estate are also eligible. New construction must be completed before closing. Other guidelines and restrictions may apply.
We can put you in touch with those who can help you learn more about this great assistance program.
Contact us at www.realtyquest.com