06/01/2026
Housing program to give eligible Chicagoans up to $70,000 toward down payment
The HomeGrown Purchase Assistance Grant comes at a time when homeownership is becoming increasingly out of reach for many Chicagoans, as housing prices rise.
Mayor Brandon Johnson and the Chicago Department of Housing announced Monday a new program that gives eligible Chicagoans up to $70,000 in financial assistance to buy a new home.
The HomeGrown Purchase Assistance Grant is aimed at low- and moderate-income families, for whom homeownership is becoming increasingly out of reach. The median sale price in April for a home in Chicago is $388,918 — up more than 5% year over year, according to Redfin.
The program will launch June 8, and it’s expected to aid between 300 to 400 buyers, depending on the size of each grant awarded.
“As we all know, prices are increasing everywhere, from gas to groceries to home ownership,” Destiny Durham, project manager of homebuyer programs at the Department of Housing, said. “We can help Chicagoans get into the home that they desire so they won’t feel that it’s out of reach because everything in today’s climate is definitely increasing.”
The $21 million program is funded by Johnson’s $1.25 billion housing and economic development bond that was approved by the City Council in 2024. Durham said it’s a one-time funding effort for HomeGrown, but the city may revisit the program if it proves successful.
To be eligible, applicants must complete U.S. Department of Housing and Urban Development-certified homebuyer education and be in the market for a one- or two-unit home in Chicago that they’ll occupy for at least five years as their primary residence. Their household annual gross income cannot exceed 150% of the area median income, according to the DOH. A family of four making 150% of the AMI would have an annual income of $182,250. An individual making up to $127,650 could qualify.
Buyers can receive up to $70,000 toward a down payment and closing costs, depending on the location of their new home. For the program, the department categorized neighborhoods into two zones: Zone A is for areas that have seen significant increases in home sale prices, and Zone B covers low-income census tract areas where 70% or more families have incomes below 80% of the statewide median family income.
Buyers purchasing homes in Zone A are eligible for up to $70,000 in grant funding, based on their income. Those buying homes in Zone B can receive up to $50,000, according to the DOH.
Durham pointed to Lincoln Park and Lake View as neighborhoods included in Zone A, while Zone B includes neighborhoods such as Englewood and Roseland. A new website for the program will allow potential buyers to see which zone their desired home falls under, Durham said.
Durham said the department chose to make HomeGrown a citywide program because it will help reduce the affordability gap between neighborhoods and among buyers.
“We don’t want to continue to have homeownership be out of reach for many working families,” Durham said. “We have many that could be priced out of homeownership just because of rising costs, and they have limited down payment assistance as well. This [program] can help with both of those.”
The city offers other homebuyer assistance programs like TaxSmart, a Mortgage Credit Certificate program that gives first-time homebuyers, or those purchasing a home in an “economically troubled census tract,” a claimable tax credit for a portion of their annual mortgage interest payment. But Durham said HomeGrown is unique because it’s citywide and awards more funding than other programs. The grants also aren’t limited to new construction homes, like some other city programs.
“This is going to be for existing properties all throughout the city of Chicago, where we want to reduce the affordability gap and have citizens of Chicago access affordable homeownership,” she said.
Neighborhood Lending Services and TRP Lending, an affiliate of The Resurrection Project, will administer the program, according to the DOH.
“We want Chicagoans to be able to afford to raise their children and spend their lives in our city,” Johnson said in a news release. “As we work to invest in housing opportunities and expand pathways to stable, affordable housing for all our residents, it is a key aim of our administration to ensure that homeownership remains within reach for working families across Chicago while investing in generational wealth, neighborhood stability, and longterm opportunity in every community.
