Buying a home in Chicago could soon get a little easier for some first-time buyers.
The city is launching the new HomeGrown Purchase Assistance program that will offer eligible homebuyers up to $70,000 to help cover a down payment and closing costs, in an effort to make homeownership a reality as prices continue to climb, Mayor Brandon Johnson and the Chicago Department of Housing announced Monday.
The $21 million program is set to begin accepting applications on June 8 and is expected to help between 300 and 400 first-time homebuyers, according to a news release.
"We want Chicagoans to be able to afford to raise their children and spend their lives in our city,” Johnson said in a statement. “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 long-term opportunity in every community.”
To qualify, applicants must be first-time homebuyers purchasing a one- or two-unit property in Chicago that will serve as their primary residence for at least five years. Buyers must also complete a HUD-certified homebuyer education course and meet income requirements. Household income cannot exceed 150 percent of the area's median income, which works out to a maximum annual income of $182,250 for a family of four or $127,650 for a single person.
The program arrives as the median home sale price in Chicago reached nearly $389,000 in April, up more than 5 percent from a year earlier, according to Redfin.
The amount of HomeGrown Purchase Assistance available depends on both a buyer's income and where the home is located. Under the program, the city has divided neighborhoods into two categories. Zone A includes neighborhoods that have seen significant home-price growth, while Zone B covers lower-income census tracts where at least 70 percent of households earn less than 80 percent of the state's median family income.
Eligible buyers purchasing in Zone A could receive up to $70,000, while those buying in Zone B could qualify for as much as $50,000. The grant amount decreases as household income increases.
Buyers will still need to have some money invested in the purchase. Program rules require applicants to contribute at least 1 percent of the home's purchase price from their own funds, and the grant cannot exceed 25 percent of the purchase price before any other assistance is applied.
The HomeGrown program is funded through Johnson's $1.25 billion housing and economic development bond package approved by the City Council in 2024. Unlike some housing assistance programs that focus on newly built homes, HomeGrown can be used to purchase existing properties anywhere in the city. Officials say that flexibility could help more families enter the housing market and reduce affordability gaps between neighborhoods.
Applications and administration of the program will be handled by Neighborhood Housing Services of Chicago and TRP Lending, an affiliate of The Resurrection Project.
