Overview
Chicago is the rare big city where a first-time buyer can still find a house at the median. Redfin's September 2026 median sale price was $409,805, up 7.8% year over year, and that climb is squeezing the bungalow belt and two-flat neighborhoods that used to be the easy entry point. First-time buyers are concentrated on the Northwest and Southwest Sides (Portage Park, Belmont Cragin, Garfield Ridge, Ashburn), the South Side (Chatham, South Shore condos, the edges of Beverly), and in nearby Cook County suburbs like Berwyn, Oak Lawn, and Blue Island. Two- to four-flats remain a Chicago specialty, and most of the programs below allow them.
The city's current flagship is HomeGrown Purchase Assistance from the Department of Housing. It is a grant, not a loan, with amounts set by your income and the property's zone: in Zone A (neighborhoods with sharply rising prices) a household at or below 80% of AMI can get $70,000, sliding to $10,000 at 121% to 150% of AMI; in Zone B (low-income census tracts) it runs from $50,000 down to $20,000 at 101% to 120% of AMI. The grant cannot exceed 25% of the purchase price, you must put in 1% of your own money, complete HUD-approved homebuyer education before closing, and keep the home as your primary residence for five years. You can use any Illinois-licensed lender, but the grant application only goes through NLS (an NHS Chicago affiliate) or TRP Lending, and only after you have a signed contract; the queue is first-come, first-served. For brand-new homes built on city lots, Building Neighborhoods and Affordable Homes pays up to $100,000 toward price, appraisal gaps, or closing costs for households up to 140% of AMI, with a 10-year occupancy requirement. Buyers of land-trust, co-op, or deed-restricted homes can get up to $60,000 through the Shared Equity Investment Program, and the Chicago Housing Trust lists price-restricted condos and houses.
Local Programs in Chicago
HomeGrown Purchase Assistance
Applications open as of October 2026, first-come, first-served; your place in the queue is set only when a complete application is submitted. A signed purchase contract is required before applying. Buyer must contribute at least 1% of the purchase price from personal funds, complete HUD-approved homebuyer education before closing, and may use any Illinois-licensed lender (no preferred-lender requirement), but the grant application goes only through NLS or TRP. No co-signers; grant cannot pay for furnishings, mortgage insurance, or appraisal gaps. Non-residents relocating to Chicago and City employees may apply. DOH's page does not list a first-time buyer requirement; confirm with NLS or TRP.
Building Neighborhoods and Affordable Homes Program (BNAH)
Grant can fill an appraisal gap, pay closing costs, down payment, senior loan principal reduction, appraisals, inspections, prepaid interest/points, and one year of prepaid insurance. Listed homes are posted on the DOH page as they become available (two Trumbull Ave listings at $750,000 at time of review). Cannot be used on private developments triggering the Affordable Requirements Ordinance. Apply online through DOH with the BNAH checklist and affidavits.
Shared Equity Investment Program - Purchase Price Assistance
Newly established (applications opened under Mayor Johnson's Community Wealth Building effort). Apply through The Resurrection Project (resurrectionproject.org/seip). A separate Acquisition Support track run by Chicago Community Loan Fund funds organizations, not buyers. First-time status and recapture terms are not stated on DOH's page.
Chicago Housing Trust (formerly Chicago Community Land Trust)
Not a down payment program; it is the pipeline for below-market condos, bungalows, and two-flats. Buyers attend a Trust orientation and apply through the Trust. Four homes were listed at time of review (East Garfield Park, Little Village, Woodlawn). Resale formula and first-time rules are set in the covenant rather than published as a single summary.
Cook County Down Payment Assistance Program
Phase III ($2 million) launched July 20, 2026. As of late October 2026 Club 720 reports the Land Home Financial Services allocation is fully committed and only limited Cook County funds remain through Wintrust Mortgage; buyers must obtain their first mortgage through Wintrust and funding is not guaranteed until a reservation is confirmed. HUD-approved homebuyer education required for anyone who has not owned a home in three years. Minimum credit score listed as 600 on Club 720's page and 620 in the County's June 2026 announcement. Fixed-rate 30-year first mortgage; FHA, VA, and Freddie Mac loan limits apply.
Cook County Land Bank Authority Purchase Assistance Program
Announced July 28, 2026; first-come, first-served. Buyer contributes the lesser of $1,000 or 1% of the price (cannot be gifted); must be mortgage-ready with a pre-approval or proof of funds; homes sold as-is; homebuyer counseling required for Land Bank exclusive properties; other grants may be layered. Submit the application, notarized occupancy affidavit, signed recapture agreement, executed contract, and checklist by email; award letters take up to three weeks. No minimum credit score beyond your lender's.
Home Buyer Assistance Program (Chicago Infrastructure Trust)
Status unverified and likely legacy. The Trust's page still says lenders are accepting applications, but its newest documents are a 2018 lender list and a 2019 flyer, the program page on chicago.gov has been removed, and DOH's current For Homebuyers page no longer lists it (HomeGrown appears to be the successor). Treat as closed unless a participating lender confirms otherwise.
Stacking With Illinois Programs
IHDA Mortgage provides the statewide first mortgage with a choice of Access Forgivable (4% up to $6,000, forgiven over 10 years), Access Deferred (5% up to $7,500, due on sale or refinance), Access Repayable (10% up to $10,000, 0% repaid over 10 years), or the $9,000 Opening Doors grant forgiven over five years that IHDA marked open in 2026; all require 1% or $1,000 of your own funds, a 640 credit score, DTI of 50% or less, and pre-purchase education. HomeGrown lets you use any Illinois-licensed lender and caps its grant at 25% of the price before any other purchase assistance is applied, which contemplates layering, but neither DOH nor IHDA publishes a compatibility chart, so have NLS or TRP and an IHDA-approved lender confirm the specific combination in writing. Cook County's DPA currently requires the first mortgage through Wintrust, which may or may not be your IHDA lender.
Full details, income limits, and the federal FHA, VA, and USDA options are on the Illinois first-time homebuyer programs guide. When you know what you qualify for, compare the best mortgage lenders for first-time buyers and confirm the lender is approved for the program you plan to use.
Tips for First-Time Buyers in Chicago
County and state layers. Cook County's own Down Payment Assistance Program (5% of the first mortgage up to $25,000, forgiven after five years) relaunched in July 2026 with $2 million, but by late October the Land Home allocation was fully committed and only limited funds remained through Wintrust Mortgage. The Cook County Land Bank offers up to 6% or $20,000 on its own listed properties with no income cap. IHDA provides the statewide first mortgage with Access Forgivable, Access Deferred, Access Repayable, or the $9,000 Opening Doors grant that is open in 2026. HomeGrown caps the grant at 25% of the price "before any other purchase assistance is applied," which signals layering is contemplated, but neither DOH nor IHDA publishes a compatibility chart, so have NLS or TRP and an IHDA-approved lender confirm the combination in writing. FHA, VA, and conventional loans all work with HomeGrown.
Timing matters more than it looks. HomeGrown will not accept your application without an executed contract, and your place in line is set only when the file is complete, so assemble pre-approval, income documents, and ID before you write an offer, and negotiate a closing date that leaves room for review. Take the HUD-approved class early; it is required before closing for nearly every program here. If you are chasing Cook County's money, you currently must take your first mortgage from Wintrust, so compare that rate against other lenders plus HomeGrown alone.
A $70,000 HomeGrown grant on a $380,000 two-flat in Zone A is close to a full 20% down payment, which is why demand is heavy and why the older Chicago Infrastructure Trust Home Buyer Assistance Program now reads like a legacy page rather than a live option. Verify funding the week you apply, not the month before.
Frequently Asked Questions
Sources
- Chicago DOH - HomeGrown Purchase Assistance
- Chicago DOH - Building Neighborhoods and Affordable Homes Program
- Chicago DOH - Shared Equity Investment Program
- Chicago DOH - For Homebuyers (program index)
- Chicago Housing Trust - Programs
- Cook County - Third Phase of Down Payment Assistance Program (June 22, 2026)
- Club 720 - Cook County Down Payment Assistance (status and terms)
- Cook County Land Bank Authority - Purchase Assistance Program
- Chicago Infrastructure Trust - Home Buyer Assistance Program (legacy page)
- IHDA Mortgage - Homebuyer Center (Access and Opening Doors programs)
- Redfin - Chicago, IL Housing Market (September 2026)
For educational purposes only -- not financial or tax advice. Program details, funding availability, income limits, and benefit amounts change, often mid-year. Verify everything with the administering agency before you apply. Median home price: Redfin, Chicago, IL housing market, September 2026 (median sale price $409,805, +7.8% YoY), https://www.redfin.com/city/29470/IL/Chicago/housing-market. Last verified: October 29, 2026.