Cook County Down Payment Assistance Program (2025) is Back Open

kmrealtytammyjacks
19 hours ago
12 min read

Buying a home in Cook County just got a little easier — eligible buyers can now get up to $25,000 in financial assistance.

Cook County Down Payment Assistance Program

Overview of the Program and Its Purpose

First-time homebuyers in Cook County and surrounding areas often find saving for a down payment to be a major hurdle, especially with rising home prices and interest rates.

To address this, Cook County launched the Down Payment Assistance Program in 2024 as a pilot initiative to help make homeownership more attainable for local residents.

The program provides financial assistance toward down payments and closing costs, easing the upfront burden for buyers and opening the door to homeownership for those who might otherwise be priced out.

Cook County Board President Toni Preckwinkle noted that “rising prices and interest rates have made saving for a down payment more difficult than ever,” and this program is a direct response to that reality.

In short, the program’s purpose is to expand affordable homeownership and prevent families from being displaced due to cost barriers, thereby strengthening communities across the county.

2025 Updates: New Funding and Program Expansion

Big news for 2025: The Cook County Down Payment Assistance Program has been renewed and expanded.

In June 2025, the County Board approved an additional $8.6 million to fund a second phase of the program.

This fresh funding became available to participating lenders on June 24, 2025, effectively reopening the program for new applicants after the successful 2024 pilot.

The 2024 pilot phase (with $3 million budget) helped over 200 households purchase homes across Cook County.

Building on that success, the 2025 expansion aims to assist over 500 more homebuyers in achieving homeownership in the coming years.

The core features remain the same (detailed below), but the increased funding means more eligible buyers can receive help.

Cook County is also encouraging more lenders to join the program, so buyers will have an easier time finding participating mortgage providers.

(2025 Update at a Glance: The program is open again as of mid-2025, with more funding and lender participation, so now is a great time for eligible Chicago-area buyers to explore this opportunity.)

Eligibility Requirements

To benefit from the Cook County Down Payment Assistance Program, homebuyers need to meet certain criteria.

Key eligibility requirements include:

Location and Property: You must be purchasing an eligible home in Cook County (this covers Chicago and all surrounding suburbs in the county). The property must be a primary residence (owner-occupied) and can be a single-family house, townhome, condo, or even a 2-flat (up to 2 units).
Income Limits: The program is designed for low- to middle-income households. Generally, buyers can earn up to 120% of the Area Median Income (AMI) for the Chicago area and still qualify. For example, 120% AMI for a family of four is about $143,880 per year. If you are buying a home in certain targeted neighborhoods – officially designated “Disproportionately Impacted Areas” or “Qualified Census Tracts” – then no income limit applies, broadening eligibility in communities that the County especially wants to support.
Credit Score: A minimum credit score of 620 is required to participate. This ensures borrowers are reasonably credit-worthy for mortgage approval. It’s a fairly accessible credit threshold, but prospective buyers should check their credit and take steps to improve it if needed before applying.
First-Time Homebuyer Status: The program is open to both first-time and repeat homebuyers, but first-time buyers (defined here as anyone who has not owned a home in the last three years) must complete a homebuyer education course before closing. This is a HUD-approved counseling course aimed at preparing buyers for sustainable homeownership. (Even if you’ve owned before, taking a homeownership class can be beneficial.)
Additional Requirements: Buyers should plan to occupy the home as their primary residence for at least the length of the assistance period (more on that below). Also, a reasonable debt-to-income (DTI) ratio (under 50%) will be required by lenders, as usual for mortgage qualification. Standard loan underwriting criteria still apply, since this program works in conjunction with your mortgage.

Bottom line: If you have moderate income, decent credit, and are buying a home in Cook County to live in, there’s a good chance you could be eligible for this down payment assistance.

And remember, you don’t strictly have to be a first-time buyer – repeat buyers can qualify too, as long as they meet the income and other guidelines.

Types and Amount of Assistance Offered

The Cook County program offers substantial financial help to make buying a home more affordable.

Here’s what it provides:

Down Payment and Closing Cost Aid: Eligible homebuyers can receive a subsidy worth 5% of the home’s purchase price (up to a maximum of $25,000). This money can be used toward your down payment, to cover closing costs, or even to buy down your mortgage interest rate – whichever is most helpful in your situation. For many buyers, this could mean tens of thousands of dollars of upfront assistance (for example, on a $300,000 home, 5% is $15,000). During the pilot program, participants received an average of approximately $15,000 in assistance each, which often made the difference in affording homes that would have been out of reach otherwise.
Forgivable Second Loan Structure: The assistance is provided in the form of a forgivable second mortgage(sometimes called a “silent second”). This isn’t a cash grant at the moment of purchase, but rather a 0% interest loan that requires no monthly payments and is fully forgiven after five years as long as you stay in the home. Essentially, if you remain owner-occupant for at least 5 years, you never have to repay the assistance – it turns into a grant. If you sell or refinance before the 5-year mark, you would need to repay the remaining unforgiven portion (which reduces by 1/60th each month you occupy, since it forgives on a monthly schedule over five years). This structure helps encourage neighborhood stability by motivating buyers to stay in their homes for a few years.
Applicable Loan Types: The program can be used with a variety of first mortgage types – whether you’re getting an FHA, VA, USDA, or conventional loan (Fannie Mae/Freddie Mac), the 5% assistance can still apply. This gives buyers flexibility to choose the primary mortgage that best fits their needs while still layering on the assistance.
Use of Funds: As noted, you can use the subsidy in a few ways. Most buyers will simply apply it to cover the down payment requirement or closing costs (like title fees, appraisal, etc.), reducing the cash they need to bring to closing. Alternatively, the funds can help “buy down” your interest rate – essentially paying upfront to get a lower monthly rate, which can save money over time. Some buyers might do a combination of both. This flexibility means you and your lender can decide how the assistance can stretch your dollars the furthest, whether that’s minimizing out-of-pocket costs or lowering your long-term payments.

Overall, the Cook County DPA offers a generous amount of aid – up to $25K – and because it’s forgivable after five years, it functions very much like a grant for those who put down roots.

It’s a significant boost that can make the difference in affording a home, especially in high-cost areas of Chicago and its suburbs.

How Homebuyers Can Apply

Applying for the Cook County Down Payment Assistance Program is a multi-step process, but it’s designed to integrate seamlessly with your home purchase and mortgage application. Here’s how to get started:

Check Your Eligibility: The first step is to confirm that you meet the program requirements. You can do this through the official program portal – Cook County has partnered with an online platform called Club 720 for managing the down payment assistance. Visit the Club 720 website or mobile app to answer a few questions and screen your eligibility. (On the Club 720 site, look for the Cook County DPA section and a button to “Check Your Eligibility.”) This will help determine if your income, credit, and home purchase plans align with the program guidelines. You could also speak directly with a participating lender to have them assess your eligibility; a list of approved lenders is available via Club 720.
Get Pre-Approved and Complete Homebuyer Education: If you’re eligible, the next step is to get pre-approved for a mortgage with a participating lender and to complete the required homebuyer education course(if you haven’t already done so). The counseling course is mandatory for first-time buyers (those not having owned in 3+ years) and is highly recommended for everyone. Many HUD-approved housing counseling agencies in the Chicago area offer these classes online or in person. Completing this early will equip you with knowledge and also satisfy the program requirement so you’re ready when it’s time to close. Meanwhile, work with a lender in the program to get a pre-approval letter – let them know you plan to use the Cook County DPA, as they’ll need to be set up to process it.
Find a Home and Sign a Purchase Contract: With your financing lined up and education done, you can house-hunt within Cook County. The assistance can be used in any Cook County location (city or suburbs), so you have a wide range of neighborhoods to consider. Once you find the right home, you’ll make an offer and sign a purchase agreement. Typically, the purchase price should align with what your lender approves you for – remember that the program helped buyers afford homes in roughly the $200,000–$400,000 price range during the pilot, though there’s no hard cap on price as long as you qualify for the mortgage. One thing to note: the property must pass the lender’s underwriting and any standard inspections/appraisals; the program doesn’t impose extra property condition requirements beyond what your loan (FHA, etc.) would require.
Finalize Your Loan and Receive Assistance at Closing: Once you have a signed contract, your lender will lock in your mortgage rate and register the down payment assistance for your loan package. The assistance comes in as a second mortgage on the home – your lender and the program administrators will handle the paperwork for this. When you go to the closing of the home purchase, the Cook County DPA funds are provided at closing to cover the allowed portion of your down payment and costs. You will sign a second mortgage note, which outlines the 5-year forgiveness terms. After closing, you become a homeowner! The second loan then simply remains on record but requires no payments – if you stay in the home for 60 months, it will fully forgive automatically. (If you sell or refinance earlier, just remember some prorated amount would be due, per the program rules.) Your primary focus after closing is enjoying your new home and staying on top of your main mortgage payments and homeownership responsibilities.

Pro Tip: Throughout this process, take advantage of informational resources.

Cook County’s partner Club 720 hosts biweekly virtual workshops for homebuyers on how to apply and work with the program’s lenders.

These sessions (offered in English and Spanish) can answer common questions and connect you with housing counselors and lending experts.

It’s a great way to learn more or get personal guidance as you move through the steps.

Specific Down Payment Assistance Options

While the Cook County DPA Program is a county-wide initiative (available in Chicago and all Cook County communities), there are also specific programs and resources to help with down payments.

If you’re a homebuyer in the city, you might want to explore these options in addition to the county program:

City of Chicago’s Building Neighborhoods and Affordable Homes (BNAH) Program: This is a unique initiative by the City of Chicago that provides grants up to $100,000 to qualifying buyers of newly constructed homes in certain targeted neighborhoods. The BNAH program is designed to boost homeownership in areas where the City has invested in new affordable housing development (often through the City Lots for Working Families program or other redevelopment agreements). To qualify, households must meet income limits (generally up to 140% AMI) and the home must be one of the program’s designated new construction properties. Buyers also have to commit to living in the home for a minimum period (10 years) since the grant is forgivable over time. Key takeaway: If you’re open to buying new construction in select Chicago neighborhoods, BNAH can offer a very large subsidy – potentially $50k to $100k – toward your purchase price. Check the City of Chicago’s housing department website for current BNAH home listings and application details.
Chicago Housing Authority (CHA) Purchase Assistance: The CHA, which serves public housing residents and Housing Choice Voucher holders, has its own down payment assistance program for those who qualify. It offers up to $20,000 in assistance for first-time homebuyers who are CHA public housing residents or voucher participants, helping them transition into homeownership. Even if you’re not currently in a CHA program, the CHA offers up to $10,000 in down payment help for other eligible low-income buyers purchasing within the city of Chicago. This assistance can be used for down payment, closing costs, and even expenses like private mortgage insurance premiums. Participants must attend a CHA homeownership orientation and meet income and credit requirements. This is a fantastic resource if you’re a renter in a CHA property or using a housing voucher and want to become an owner.
Additional City Programs: Chicago periodically offers other homebuyer assistance initiatives. For example, the TIF Purchase-Rehab Program provides forgivable loans to help buyers purchase and rehab vacant homes in certain Tax Increment Financing districts (covering up to 25% of project costs). There was also a Micro Market Recovery Program (MMRP) that offered $30,000 grants in specific areas, though that particular program is not currently accepting new applications. Additionally, the City had a Home Buyer Assistance Program providing grants (often around 5%–7% of the loan amount) to buyers meeting certain income and credit criteria – buyers could get, for example, ~$17,000 on a $250K purchase under that program. These city-run programs may have evolving funding and availability, so it’s wise to check the City of Chicago’s Department of Housing website or talk to a housing counselor about the latest offerings. Don’t forget, many non-profit organizations (like Neighborhood Housing Services of Chicago) also offer counseling, special loans, or matching grant programs that can complement your down payment savings.

Lastly, beyond city and county options, remember the State of Illinois has assistance that Chicago and Cook County buyers can tap into.

The Illinois Housing Development Authority (IHDA) offers statewide programs that provide up to $10,000 in down payment and closing cost assistance for eligible first-time or repeat buyers, usually in conjunction with affordable fixed-rate IHDA mortgages.

These IHDA programs can sometimes be stacked with local programs like Cook County’s DPA to maximize your benefit.

For example, you might get $10k from IHDA and another sum from Cook County, if you qualify and your lender can layer the programs.

It’s worth inquiring with your lender about combining assistance programs.

Resources and Links for Applicants

Embarking on the homeownership journey with the help of these programs can be made easier by tapping into the right resources.

Here are some useful links and contacts for Cook County and Chicago homebuyer assistance:

Cook County Down Payment Assistance Program – Information & Application: Visit the official program portal at Club 720’s website for Cook County DPA (/cookcounty-dpa). There you can find eligibility tools, FAQs, and the list of participating lenders, or download the Club 720 app to get started. This is the primary hub to apply for Cook County’s assistance or to sign up for informational workshops.
Cook County Bureau of Economic Development: The County’s economic development department oversees this initiative. Their news release about the program’s 2025 expansion provides a great overview of the program’s terms and success stories. (See Cook County’s official website News section, press release dated June 16, 2025, titled “Cook County Board Approves Funding for Second Phase of Down Payment Assistance Program.”)
City of Chicago Homebuyer Assistance Programs: Check out the Chicago Department of Housing’s webpage for Homebuyer programs. Notably, the BNAH Program details can be found on the city website, which includes current eligibility and an application checklist. For other programs like the TIF Purchase Rehab or any grant programs, the Department of Housing site and newsletters will have up-to-date information.
Chicago Housing Authority (CHA) Homeownership Program: If you think you might qualify for CHA’s purchase assistance (for instance, if you have a Section 8 voucher), visit the CHA’s official site or contact their Family Self-Sufficiency/Homeownership department. The program offering up to $20k for CHA families is often publicized in CHA materials – you can also find a summary at Neighborhood Housing Services’ site.
Illinois State Assistance (IHDA): For IHDA’s down payment assistance statewide, you can read about options on ihdamortgage.org (the IHDA Mortgage website) or IHDA’s consumer site. They have a lender locator tool to find local lenders who offer IHDA loan programs. It’s a good idea to see if you qualify for IHDA’s $6,000 – $10,000 assistance programs in addition to the local programs.
Homebuyer Education and Counseling: As a first-time buyer, you’ll need to complete a HUD-approved education course. Organizations like NHS Chicago, Spanish Coalition for Housing, HUD-approved housing counseling agencies, etc., offer classes and one-on-one counseling. These agencies can not only provide the required certificate but also guide you through budgeting, improving credit, and navigating program applications. Many courses can be found via the U.S. HUD website for housing counselors or through recommendations on the Club 720 resource page.
Local Realtors and Lenders: Don’t forget to leverage local professionals. A real estate agent experienced in first-time buyer programs (like those at KM Realty Group) can help identify homes that fit your budget with assistance, and lenders who participate in the Cook County program can pre-approve you with the down payment aid factored in. The Club 720 site lists approved lenders, or you can ask your bank if they’ve joined the Cook County DPA initiative.

Buying a home is a big step, but with programs like these, Cook County and Chicago are investing in making that step more achievable for more families.

Whether you use the County’s down payment assistance, a City grant, a state program, or a combination, there are resources at your fingertips to make homeownership in Chicago more affordable.

Be sure to explore these options, attend workshops or counseling for guidance, and soon you could be unlocking the door to your own home in Cook County with a much lower financial barrier to entry.

Good luck on your homebuying journey.

Ready to Take the Next Step?

Buying your first home in Chicago or Cook County can feel overwhelming, but you don’t have to do it alone.

Our experienced team at KM Realty Group LLC, based at 111 N Wabash #1734, Chicago, IL 60602, has helped hundreds of local buyers unlock down payment assistance and achieve their homeownership dreams.

Ready to explore your options?

Reach out today to Tammy Jackson (our lead homebuyer specialist) or any of our friendly Chicago realtors. We’ll guide you through every step, from program eligibility to closing on your new home.