FHLB of Chicago Offers Downpayment Subsidies

The ""Federal Home Loan Bank of Chicago's"":http://www.fhlbc.com Downpayment Plus (DPP) programs went live Monday. Financial institutions in Illinois and Wisconsin that are members of the regional Home Loan Bank can offer eligible mortgage borrowers a subsidy of $8,000.

The money may be used for downpayment and closing cost assistance, homebuyer counseling costs, or rehabilitation costs associated with the purchase of a home. Chicago's Federal Home Loan Bank is allocating $10 million for its DPP programs in 2012.

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""While you won't find branches of the Federal Home Loan Bank of Chicago on neighborhood street corners, we are an important factor in housing finance through our member institutions in Illinois and Wisconsin,"" said Matt Feldman, president and CEO of the Federal Home Loan Bank of Chicago.

""One of the ways we help build communities is through the Downpayment Plus programs,"" Feldman continued, ""which provide eligible borrowers with good credit and a steady income the helping hand they might need with the down payment for a home.""

Funds are available to members of the Federal Home Loan Bank of Chicago on a first-come, first-served basis until the annual allocation is exhausted. Each participating member institution can access $400,000 on behalf of their customers.

Homebuyers must meet income eligibility requirements, occupy the home as their primary residence, and contribute at least $1,000 to the purchase of the home as well as participate in homebuyer and financial literacy counseling.