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Chicago Just Launched a New Down Payment Assistance Program: What You Need To Know

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A new city program could put homeownership within reach for you.

Mayor Brandon Johnson and the Chicago Department of Housing recently announced the HomeGrown Purchase Assistance Program, a new initiative offering eligible homebuyers up to $70,000 in grant funding to help with down payments and closing costs. Applications open June 8, 2026.

If you have been waiting, saving or wondering whether homeownership is realistic, this program may be worth exploring.

What is the HomeGrown Purchase Assistance Program?

The HomeGrown Purchase Assistance Program was created to help eligible buyers overcome one of the biggest barriers to homeownership: the upfront cost of buying a home.

The program provides grant assistance, not a traditional loan, to help cover down payment and closing costs. Grant amounts are based on the buyer’s income and where the home is located.

The program is funded with $21 million from Mayor Johnson’s $1.25 billion Housing and Economic Development Bond and is designed to support low- to moderate-income buyers who want to purchase a home in Chicago.

How much assistance is available?

Eligible buyers may receive up to $70,000 in assistance.

The exact amount depends on two things:

  1. Your household income, based on Area Median Income, also known as AMI
  2. The location of the property you want to purchase

The program divides eligible properties into two zones.

Zone A

Zone A includes areas that have experienced significant increases in home sale prices. A map of the zone areas can be found here.

Eligible buyers purchasing in Zone A may receive:

Income Level Grant Amount
80% AMI and below $70,000
81–90% AMI $60,000
91–100% AMI $50,000
101–120% AMI $40,000

Zone B

Zone B includes low-income census tract areas where 70% or more of families earn below 80% of the statewide median family income. A map of the zone areas can be found here.

Eligible buyers purchasing in Zone B may receive:

Income Level Grant Amount
80% AMI and below $50,000
81–90% AMI $40,000
91–100% AMI $30,000
101–120% AMI $20,000
121–150% AMI $10,000

Grant funds may not exceed 25% of the property’s purchase price before any other purchase assistance is applied.

Who is eligible?

To qualify for the HomeGrown Program, buyers must meet several requirements.

Eligible buyers must:

  • Meet income and mortgage requirements based on their AMI level
  • Complete a homebuyer education counseling program
  • Contribute at least 1% of the original purchase price from their own personal funds
  • Purchase a property in a designated Zone A or Zone B area
  • Live in the home as their primary residence for at least five years

That last requirement is important. This program is intended for buyers who want to put down roots in Chicago. It is not designed for investors or short-term owners.

Why this program matters

For many potential buyers, the monthly mortgage payment is not the only challenge. The biggest hurdle is often the upfront cost.

Saving for a down payment and closing costs can be difficult, especially while rents, everyday expenses and home prices continue to rise. Some buyers may be financially ready to manage homeownership long term, but still need help getting through the initial cost of purchasing a home.

Homeownership can provide stability, help build equity and create long-term financial opportunity. For many families, it is also one of the most meaningful ways to invest in their future and their community.

The HomeGrown Program is designed to help more Chicagoans take that step.

How to apply

Applications open June 8, 2026.

Buyers can apply through either program administrator:

For general program information, visit www.chicago.gov/homegrown or call 312-744-3653.

Thinking about buying a home in Chicago?

If you have been wondering whether homeownership is possible, this may be a good time to revisit your options.

A REALTOR® can help you understand the buying process, identify homes that may fit your needs and connect you with trusted professionals as you explore whether this program could work for you.

Before you apply, consider taking these next steps:

  • Review the program requirements
  • Check whether your income may fall within the eligible range
  • Start or complete a homebuyer education counseling program
  • Talk with a lender about what you may be able to afford
  • Connect with a REALTOR® who understands the Chicago market

Programs like HomeGrown make the path to ownership more realistic for buyers who are ready to take the next step.

For questions about the program, visit www.chicago.gov/homegrown or call 312-744-3653.

Understanding Credit Scores and Their Role in Homebuying

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When you’re preparing to buy a home, your credit score is one of the most important numbers lenders will look at. In addition to influencing whether you’ll qualify for a mortgage, your credit score affects the interest rate and loan terms you’ll be offered, which can impact your monthly payments for years to come.

What Is a Credit Score?

A credit score is a three-digit number that reflects your history of borrowing and repaying money. It’s based on factors like how much debt you carry, how reliably you pay bills and how long you’ve had credit accounts open. In general, higher scores signal lower risk to lenders, while lower scores may suggest greater risk.

How Your Credit Score Affects Your Ability to Buy a Home

Mortgage lenders use credit scores as a way to measure trustworthiness. Having a higher score usually means you’ll qualify for a lower interest rate, saving you money over the life of the loan. On the other hand, having a lower score can mean higher rates or even additional requirements, like a larger down payment. That’s why it’s worth taking the time to strengthen your credit before applying for a loan.

What Influences Your Score

While credit scoring models can vary, the following tend to carry the most weight:

  • Payment history: Consistently paying bills on time is the single most important factor.

  • Credit utilization: How much of your available credit you’re using.

  • Length of credit history: Having older accounts open shows you’ve managed credit responsibly over time.

  • Types of credit: The different types of credit lines you have open, such as an installment loan (like a car loan) or revolving credit (like credit cards), can impact your score.

  • New credit inquiries: Opening several accounts in a short time can temporarily lower your score.

Improving Your Credit Before Buying

Even if your credit isn’t perfect, you can take steps to strengthen it:

  • Pay down balances. Aim to use less than 30% of your available credit.

  • Pay on time, every time. Even one missed payment can hurt your score.

  • Avoid opening new accounts right before applying. Lenders prefer stability.

  • Check your reports. Errors do happen—you can get free reports at AnnualCreditReport.com and dispute mistakes.

  • Build positive history. If your credit is thin or damaged, consider secured cards or small installment loans and pay them off responsibly.

The Bottom Line

Your credit score plays a major role in your homeownership journey. Understanding how it works — and taking steps to strengthen it — can help you secure a better mortgage rate and save money in the long run.

A trusted REALTOR® can connect you with local lenders, financial resources and strategies to prepare for buying. When you’re ready to begin your home search, your REALTOR® will be by your side to help you take the next step with confidence.

Negotiating Written Buyer Agreements: What To Know

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You’re ready to purchase a home. The next step is to interview REALTORS® and negotiate a written agreement that includes the services they will provide and the compensation they will receive. Here’s what you need to know about negotiating an agreement with a REALTOR®.

When will I be able to negotiate?

REALTORS® are required to get a written buyer agreement before you tour a home with them, whether that tour is in-person or a live virtual tour. These agreements help ensure both you and your REALTOR® are clear about roles, responsibilities and REALTOR® compensation. If you are simply visiting an open house or asking a real estate professional about their services, you do not need to sign a written buyer agreement. Learn more about written buyer agreements here, and learn more about open houses and tours here.

What can I negotiate?

Agreements with your REALTOR® are negotiable, including terms about the services your REALTOR® will provide, how much your REALTOR® will be paid, how long your agreement will last and more. You and your REALTOR® will work together to reach an acceptable agreement that allows you to get the value and services you need in the homebuying process, while also enabling your REALTOR® to pursue fair compensation for their work. Remember: compensation is fully negotiable and not set by law. You should consult an attorney if you have any questions or concerns regarding an agreement.

How is my REALTOR® compensated?

REALTOR® compensation can take many forms, such as a flat fee, a percentage of the purchase price or an hourly fee. REALTORS® cannot agree to an open-ended amount or range of compensation such as “the REALTOR’S® compensation will be whatever amount the seller is offering” or “between X and Y percent.” You can also ask the seller to offer compensation to your REALTOR®, which can be sought in the purchase agreement.

What types of services can my REALTOR® provide?

REALTORS® may offer many types of services such as finding and showing you homes that meet your criteria, accompanying you to showings, sharing their analysis of available properties, negotiating on your behalf and more. For more, read the 183 Ways A REALTOR® Makes The Real Estate Transaction Easier For You.

How do I start the conversation?

You may want to talk to a few REALTORS® to find the best match to help you on your homebuying journey. Start by asking questions about the options available to you. If you are working with a REALTOR®, they are bound by a Code of Ethics to have open and transparent conversations with you about your options.

What if we can’t agree?

You don’t have to sign an agreement that you don’t agree with, and you or the REALTOR® can walk away from a negotiation at any time. Keep looking for the right fit—another REALTOR® may be able to better meet your needs.

Can we change the terms of the agreement after we make it?

Yes. You and your REALTOR® can mutually agree to change the terms of your agreement. But your agreement and/or state law may govern when it can be changed or terminated. Read your agreement closely and speak with your REALTOR® if you would like to change or exit your agreement.

What Veterans Need to Know About Buying a Home

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Veterans and active servicemembers often have unique needs when looking for a home, and REALTORS® are committed to helping ensure those needs continue to be met following the real estate practice changes that went into effect on August 17, 2024. Here is what you need to know:

I’d like to take advantage of my Department of Veteran Affairs (VA) Home Loan benefit. Am I allowed to pay for a REALTOR® under VA rules?

Yes. On August 10, 2024, the VA enacted a temporary policy allowing buyers with VA home loans to pay for REALTOR® representation.

Why is the policy only temporary?

The VA will decide if a formal rulemaking is necessary to make this policy permanent.

Why am I being asked to sign a written agreement?

Written buyer agreements lay out the services your REALTOR® will provide and what they will be paid for those services. The practice changes require written agreements for many REALTORS® nationwide. You are in the driver’s seat with these agreements, which are fully negotiable. You should not sign anything that includes terms you do not agree with or do not understand. For more information on written buyer agreements, click here.

How does my buyer’s agent get paid?

This is determined in your written buyer agreement. Methods of paying a buyer’s agent may include, but are not limited to, the seller or their listing broker offering to compensate the buyer’s agent, the buyer requesting that the seller pay the buyer broker as part of the purchase offer, or the buyer paying their agent directly out of pocket.

Why should veterans and active servicemembers work with a REALTOR®?

REALTORS® are obligated under NAR’s Code of Ethics to work in your best interest. Additionally, many REALTORS® have obtained NAR’s Military Relocation Professional (MRP) certification to better prepare them to work with veteran buyers. Find a REALTOR® who has earned the MRP certification here.

Open Houses & Written Agreements: What You Need to Know

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When you begin working with a REALTOR® and touring homes, you will be asked to sign a written buyer agreement. But what if you are just attending an open house? Here’s what you should know:

I am attending an open house without a REALTOR®. Do I need a written buyer agreement in order to tour the home?

No. If you are simply visiting an open house on your own or asking a REALTOR® about their services, you do not need to sign a written buyer agreement.

Is a REALTOR® who is hosting an open house required to enter into written agreements with the potential buyers who attend the open house?

No. In this case, since the REALTOR® is only there at the direction of the listing broker or seller, the REALTOR® is not required to have a written agreement with the buyers touring the home.

When will I be asked to sign an agreement with a REALTOR®?

After you begin “working with” a REALTOR® and at any point before you tour your first house together.

What does “working with” a REALTOR® mean?

A buyer is “working with” a REALTOR® as soon as the REALTOR® begins to provide services, such as identifying potential properties and arranging tours. REALTORS® who are simply marketing their services or speaking to a buyer—at an open house or by providing a buyer access to a house they have listed—are not considered to be working with the buyer.

What does it mean to “tour” a home?

Under the terms of the settlement, a “tour” is when a buyer who is working with a REALTOR® enters a home that is for sale or directs their REALTOR® to enter the home on their behalf. This includes when the buyer’s agent provides a live, virtual tour to a buyer not physically present.

What is the purpose of written buyer agreements?

Clarity and transparency. Written buyer agreements lay out the services your REALTOR® will provide and what they will be paid. Buyers should not sign anything that includes terms they do not agree with or do not understand. These agreements are fully negotiable.

Where can I learn more about buyer agreements?

Click here for everything you need to know.

Written Buyer Agreements: What You Need To Know

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When you begin working with a REALTOR® to buy a home, you will be asked to sign a written buyer agreement. Here’s what you need to know about these agreements:

What is a written buyer agreement and what does it do? 

A written buyer agreement is an agreement between you and your REALTOR® that outlines the services your REALTOR® will provide you, and what they will be paid for those services.

Why am I being asked to sign an agreement? 

Written buyer agreements became a nationwide requirement for many REALTOR® as a part of the National Association of REALTORS®’ proposed settlement of litigation related to broker commissions. The requirement went into effect on August 17, 2024.

Are these agreements new?

In some places, yes. Many states have required them for years, while some, including Illinois, have not. As a result, it is entirely possible you or others you know have not used them in the past. Regardless, they are now a nationwide requirement for many REALTORS®. 

Are these agreements negotiable? 

Yes. You should feel empowered to negotiate any aspect of the agreement with your REALTOR®, such as the services you want to receive, the length of the agreement and the compensation, if any. Compensation between you and your REALTOR® is negotiable and not set by law. In the written agreement, the compensation must be clearly defined (e.g., $0, X flat fee, X percent, X hourly rate), not open-ended or a range. It is important to sign only an agreement that reflects what you have agreed to with your REALTOR®. 

How do I benefit from these agreements? 

These agreements clearly lay out what services you, as a homebuyer, expect your REALTOR® to provide, and what your REALTOR® will be paid. These agreements make things clear and reduce any potential confusion at the outset of your relationship with your REALTOR®. 

When do I need to sign an agreement? 

You will be asked to enter into a written buyer agreement with your REALTOR® before touring a home with them, either in-person or virtually. If you are simply visiting an open house on your own or asking a REALTOR® about their services, you do not need to sign a written buyer agreement. 

Does this mean I have to pay my REALTOR® out of pocket? 

Not necessarily. While you are responsible for paying your REALTOR® what is outlined by your agreement, you can still request, negotiate for and receive compensation for your REALTOR® from the seller or their REALTOR®. 

Do agreements dictate a specific type of relationship I need to have with my REALTOR®? 

No—you are allowed to enter into any type of business relationship with your REALTOR® that is allowed in the state law where you live. 

Can I change or exit an agreement? 

Yes. You and your REALTOR® can mutually agree to change your agreement. Agreements may have specific conditions under which they can be exited, so read the text of the agreement and speak with your REALTOR® if you would like to change or exit your agreement.

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condo yard

What You Should Know Before Buying A Condo

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If you’re interested in buying a condo, here are some helpful terms and things to consider. 

No matter what, future condo homeowners should ask a few important questions when considering a unit: 

  • Who runs the condo association?
  • What are the rules and restrictions for living in the building?
  • How much are the monthly fees and what do they cover?

Condominiums, aka condos, are a common building type in major urban areas, and Chicago is no exception. Living in a condo might not be for everyone, but they’re often an excellent choice for first-time homebuyers or for those who wish to live in a more urban setting! 

condos in Chicago on a street

KNOW WHAT MAKES A CONDO A CONDO 

A condominium is an individually owned unit in a complex or building of units. You own the space inside your individual unit and share an ownership interest in the common property. This can be as extensive as roads and courtyards and as confined as a shared stairwell and roof. 

What’s the difference between a condo and an apartment? The former is owned while the latter is rented. What about a condo versus a co-op? In a co-op, you buy shares in a corporation that owns the entire building and get a stake-hold to a specific unit. 

MEET YOUR CONDO ASSOCIATION 

Maintaining and managing the common areas of the condominium are run by an entity called a Condo Association. The whole condominium is governed by a set of rules called Covenants, Conditions, & Restrictions (CC&R’s), which operate much like bylaws. 

A board runs the condo association and has the power to regulate and monetarily penalize owners for violations as decreed in the CC&R’s. Who sits on the board? Depends on the condo building. Some associations hire a third-party management company, which typically increases the cost of living in the building, and some are managed directly by the owners. Usually, buildings with fewer units are self-managed while large buildings with more units are managed by a company. 

condos in Chicago downtown

REVIEW YOUR CONDO DOCUMENTS 

The Illinois Condominium Property Act requires the condo’s seller to provide a number of important documents to the prospective buyer prior to close. These include the declarations, the CC&R’s, the financials and more. 

When you’re buying a condo, review these before making a final decision on your purchase! What should you look for in these documents? Here are a few questions to get started: 

  • What are the rules about pets, remodeling projects, leasing units and use of common amenities? 
  • Are there reserves, and if so, how much is in the reserves? 
  • What were the most recent major purchases or renovations? Are there any upcoming special assessments to cover these maintenance projects? 
  • What are the individual owners responsible for versus the condominium association as a whole? 

Don’t hesitate to go over these documents with your REALTOR® and your attorney. They can supply additional expertise and advice! 

UNDERSTAND THE HOMEOWNER’S ASSOCIATION FEES 

Most people who know about condos know about HOA fees. As intimidating as they may seem, they serve a very specific purpose! 

Homeowners Association fees, sometimes called monthly assessments or nicknamed “HOA fees,” are an additional cost beyond your mortgage or escrow payments that go directly to the condo association. They include several maintenance costs like water, trash, landscaping and beyond. 

Why are some HOA fees so much more than others? Here’s an overview of HOA fees. In the end, you should ask about the included services in your monthly HOA fees and the portion that is sent to reserves. 

If you’re buying a condo with many shared amenities like pools, gyms, rooftops, elevators, and movie theaters, anticipate higher monthly fees to maintain these features. 

KEY TERMS TO HELP YOUR SEARCH 

As you move forward with looking for your future condo, keep these key term definitions in mind. You’ll hear them a lot during the transaction! 

  • CC&R’s: stands for Covenants, Conditions, & Restrictions which regulate living in the condo association. 
  • Condo Association Board: the governing body which makes executive decisions about shared amenity renovations and repairs, monitors the reserves and determine if special assessments are required, and enforce the CC&R’s. They meet monthly. 
  • HOA Fees: the monthly assessments or costs for living in the association. 
  • Amenities: the shared features available to all association owners and residents. 
  • Special Assessments: additional fees billed to the condo owners outside of the monthly HOA fees. They’re typically passed if a large repair is needed for a shared amenity that cannot be covered by the reserves. 
  • Reserves: the condo association’s savings! These cover emergency repairs or regular maintenance costs for the shared amenities. 
  • Property Insurance: this is the association’s insurance for the shared amenities and common spaces, but it does not insure each individual unit or their contents. 
three people looking at documents

What to Expect During A Closing: Buyers

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A closing is when you, the buyer, sign the final ownership paperwork and officially, legally become the owner of your home! You will leave your closing with the home’s keys.

Your closing date will likely be listed on the purchase and sale agreement you will sign after your offer is accepted. On average, closings are scheduled within a month or two of signing this document.

LEADING UP TO THE CLOSING

As the buyer, the days leading up to the closing will include reviewing lots and lots of paperwork. Try not to stress! Your REALTOR®, your lender and your attorney are there to assist you.

One of these documents is the Closing Disclosure (also called the CD) which lays out your final loan terms and closing costs. You will get your CD from your lender at least three days before closing for you to review.

The CD will ensure there are no surprise costs for you at the closing table. Compare this with your initial Loan Estimate when you applied for the loan, and if you see significant discrepancies, contact your lender at once.

What is the difference between closing costs and your down payment? While your down payment goes towards your home loan, closing costs are typically one-time fees that go towards all the other services that take place during the transaction such as:

  • Loan application fees
  • Appraisal fees
  • Title search fees
  • Your attorney’s fees
  • Recording fees
  • Lender costs such as underwriting, credit report and origination fees
  • Commission for both the buyer’s and the seller’s agent
  • Property taxes

If you’re nervous about how to accurately anticipate the closing costs, consult your loan estimate. It includes estimates for each of these line items. Also, Nerdwallet has a free, online calculator.

couple signing documents

WHAT TO EXPECT DAY-OF

You will attend the final walkthrough of your home within 24 hours or the day-of your closing. Typically, you, your REALTOR® and the seller’s agent will attend as you make sure any and all request repair work was completed.

What are you looking for? You’re ensuring everything is functioning properly and that nothing has broken or been damaged since the inspection. Ask your REALTOR® for a list of what to look for during the final walkthrough. If everything is as it should be, you’re ready to close! If you see anything amiss, you and your REALTOR® will contact your attorney and the seller’s agent to negotiate potential compensation for the problems at the closing table.

What should you bring to the closing table? A pen, a government-issued photo ID and a cashier’s check or proof of wire transfer to cover the closing costs and any remainders of the down payment. Ask your attorney how much you should pad for potential closing costs increases such as prepaid interest.

Note: bringing “cash to close” does not mean you should bring cash!

Depending on your state or personal circumstances, ask your attorney if you need to bring any other documentation such as proof of homeowner’s insurance.

AT THE CLOSING TABLE

Prepare yourself to sign a large stack of paperwork! Your attorney will go through each one of these documents, although you will also receive them the night before to review them in greater detail.

Depending on a number of factors, closings can last between an hour to several. You as the buyer can help prevent unnecessary delays by avoiding changes to your financial situation such as large purchases on your credit card, applying for credit or changing employers.

Who is there? At minimum, you can expect it to be you, your attorney and the lender. Depending on the circumstance, the seller may attend if they haven’t already signed their necessary documents. No matter what, you are not alone. Your attorney and your REALTOR® are available to answer questions or address concerns.

sunrise chicago

WHAT’S NEXT?

You have your keys! You have officially purchased your home! Here are a few best practices to kick off your first hours/days as a homeowner on a strong note:

  • Take your copies of the closing documents you signed and save them in a secure place.
  • If you negotiated a same-day move with the seller, keep track of each key! Confirm you’re receiving one for any and all doors, mailboxes or entries.
  • Prepare a list of authorities or organizations (like the U.S. Postal Service) you need to notify of your change of address, as it applies.

With constant communication and intentional preparation, your closing can feel like an exciting culmination of all your hard work, research and exploration. Utilize the team of professionals at your back so you can save on stress and celebrate this exciting milestone.

meet your homebuying squad

Meet Your Homebuying Squad

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This group of professionals will help you throughout the homebuying process. As you assemble your homebuying squad, consider working with all of these experts to make your home purchase confidently and with minimal stress. 

Like an athletic team, each member of the homebuying squad plays a crucial role in helping you achieve homeownership. 

MEET YOUR REALTOR® 

On this team, you are the captain, and this is your head coach. Your REALTOR® not only represents you, but also advocates for you and your interests during the transaction from start to finish. 

tiny people on briefcase and clipboard

Whenever you feel lost, confused, worried, stressed or curious, this person is your go-to resource. If they don’t have the answer, they will know how to get it for you! Sit down with your REALTOR® to build a homebuying game plan. Communicate your goals and priorities and establish a communication system you both are comfortable with.  

Also, your REALTOR® may have lenders, attorneys and inspectors they can refer you to, though you are not required to use the people they recommend. 

Best Practice Tip: CC or keep your REALTOR® in the loop whenever you communicate with someone on your homebuying team. 

MEET YOUR LENDER 

Your lender is like your athletic trainer. This is the person who can help you determine your buying power based on your financial health. 

Great questions to ask your lender include:

  • What types of loans am I eligible for?
  • How can I work on my financial health to qualify for each kind of loan?
  • When should I get prequalified or preapproved? (And what’s the difference between the two!?) 
  • And more!

Connect with a lender as early as possible in the homebuying process. That way, there are no disappointing surprises down the road based on your financial limitations. 

MEET YOUR ATTORNEY 

Your attorney is like your defense. This is the person who will review all the paperwork and contracts during the transaction. They will communicate your requests and advocate for your interests with the other party’s attorney. 

person signing a paper

Your attorney will become more involved in the transaction as soon as you’re ready to make an offer on a property. Once the offer is accepted and you move through attorney review and the inspection, you and your REALTOR® will be regularly communicating with your attorney and the seller’s attorney.  

On closing day, they will also sit down with you at the closing table to take you through each document. 

Buyer Best Practice: Use an attorney who specializes in real estate. It can be tempting to use a friend, family member or acquaintance who is a practicing attorney in another specialty, however, real estate attorneys are well-versed in the intricacies of the real estate transaction. 

MEET YOUR INSPECTOR 

Your inspector is like your special teammate. They have a very specific, yet very important, purpose in the transaction: inspecting your future home for damage, financial or physical risk, or code violations. 

hard hat illustration

While inspections are not mandatory, they are highly encouraged as they allow you to proceed with your home purchase as informed as possible. 

Once the inspection is complete, they will send an inspection report. Don’t be afraid to ask your REALTOR® questions about the contents of it! If you have a list of requested repairs or credits, this is what you’ll communicate to your attorney. 

BONUS: YOUR FAMILY & FRIENDS 

We can’t leave out your fans and supporters! It’s up to you how involved you would like your friends and family to be in the homebuying process. Whether they’re actively on the homebuying squad or simply on the guestlist for your eventual housewarming party, friends and family can provide helpful perspectives or advice. 

No matter what, you are not going through the homebuying process alone. You have a whole squad of experts who have your back!