The city of Chicago is launching a new initiative to make homeownership more attainable for first-time buyers amid rising property prices. The HomeGrown Purchase Assistance program will offer eligible homebuyers up to $70,000 to cover down payments and closing costs, as announced by Mayor Brandon Johnson and the Chicago Department of Housing.
Program Details and Funding
The $21 million program, set to begin accepting applications on June 8, is expected to assist between 300 and 400 first-time homebuyers. Funding comes from Johnson's $1.25 billion housing and economic development bond package approved by the City Council in 2024. Unlike some assistance programs limited to new constructions, HomeGrown can be used for existing properties anywhere in the city.
Eligibility Requirements
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 limits. Household income cannot exceed 150 percent of the area median income, which translates to a maximum annual income of $182,250 for a family of four or $127,650 for a single person.
Grant Amounts by Zone
The amount of assistance depends on the buyer's income and the property's location. The city has divided neighborhoods into two categories:
- Zone A: Areas with significant home-price growth, where eligible buyers can receive up to $70,000.
- Zone B: Lower-income census tracts where at least 70 percent of households earn less than 80 percent of the state's median family income, with grants up to $50,000.
The grant amount decreases as household income increases. Buyers must contribute at least 1 percent of the purchase price from their own funds, and the grant cannot exceed 25 percent of the purchase price before any other assistance is applied.
Market Context
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. Mayor Johnson stated, "We want Chicagoans to be able to afford to raise their children and spend their lives in our city. 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."
Applications and administration will be handled by Neighborhood Housing Services of Chicago and TRP Lending, an affiliate of The Resurrection Project. Officials believe the program's flexibility could help more families enter the housing market and reduce affordability gaps between neighborhoods.
