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Assistance through the Downpayment Plus Program (DPP)

The Downpayment Plus Program (DPP) is a matching program offered by the Federal Home Loan Bank of Chicago (FHLBC) that assists income-eligible home buyers with their down payments and closing costs. The Prevail Bank Mortgage Lending Team is proud to offer this assistance through our partnership with the FHLBC. The Downpayment Plus Program is provided as a forgivable grant, which is paid on behalf of the borrower at the time the mortgage is first closed upon.

What is the Downpayment Plus Program?

The Downpayment Plus Program helps income-eligible homebuyers put money down towards a home purchase, which in turn typically offsets the cost of their monthly payments.

This down payment grant is forgiven over the course of a 5-year retention period; meaning, if a consumer stays in this house for 5 years, the consumer does not have to make any payments back on the grant. If the consumer accepting the grant does not reside in the home for 5 years, the consumer will have to repay a proportional share of the grant.

Downpayment Plus Program Requirements

The Downpayment Plus Program is an annual program that is based on a first-come, first-served basis until the allotted funds in the program run out. While there are many factors that determine a consumer’s eligibility for the program, the maximum amount of grant assistance for 2020 is $6,000, which goes toward the down payment and closing costs.

Approval for assistance is additionally based on the county’s Housing and Urban Development (HUD) income guidelines, and on how many people will be living in the specified home. In addition to meeting the program’s income-eligibility requirements, the homebuyer must meet the following criteria:

  • Must contribute at least $1,000 toward the purchase of the home
  • Must not exceed 45% in total debt to income ratios
  • Must complete pre-purchase homebuyer education and counseling
  • Must live in the home as their primary residence

For additional requirements and details on the Downpayment Plus Program, reach out to a Prevail Bank Mortgage Lender to see whether you are eligible for this assistance-based program.

Down Payment Tip from Dawn Klesmith (NMLS# 681860): “The Downpayment Plus Program (DPP) is a great option to assist with further down payment and closing costs for those who are eligible. It is a grant, up to $6,000 in assistance, that lowers your borrowing costs and doesn't need to be paid back if you can stay in the home for a minimum of 5 years. If you don't quite have enough for a down payment from your own funds, this program could potentially help!”

Dawn is an experienced mortgage lender with 34 years under her belt, nearly 14 of which being with Prevail Bank. She’s a proud professional of the Stevens Point community. Dawn is active member of the Golden Sands Home Builders Association in Plover, as well as the Portage County Business Council. Over the years, Dawn has stated that “what I enjoy most about my job is helping to get a first-time homebuyer into their dream home. It's a very exciting time for the client, and to be part of their experience. This excitement is the best part of the job!”

 

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