Chicago is the most attainable of the big U.S. metros for a first home, and in 2026 the city launched a major new grant program — Homegrown — that provides between $10,000 and $70,000 in down payment help depending on your income and neighborhood.
This guide focuses on what first-time buyers in Chicago specifically can tap in 2026 — the local programs run by the city and county, the statewide help you can layer on top, and what it realistically takes to buy here.
Chicago’s own first-time buyer programs
Chicago’s local help is administered by the city’s Department of Housing and its nonprofit lending partners:
- Homegrown Purchase Assistance Program — a City of Chicago grant of $10,000 to $70,000 (administered by TRP Lending and Neighborhood Housing Services), tiered by income and by whether the home is in a high-appreciation or qualified low-income zone; requires a 1% contribution and five years of owner-occupancy
- Building Neighborhoods and Affordable Homes (BNAH) — a City of Chicago program that offers newly built or rehabbed homes in targeted neighborhoods at reduced prices with purchase assistance for income-eligible buyers
- NHS Chicago assistance — down payment and purchase-assistance grants plus counseling from Neighborhood Housing Services of Chicago (amounts vary with available funding)
These local programs are the piece most buyers miss, because they are run by the city or county rather than a lender — and they can often be combined with the statewide programs below.
Statewide programs you can also use in Chicago
On top of Chicago’s local help, every Illinois buyer can access the state’s housing finance programs — below-market loans, down payment assistance, and a possible tax credit. We cover them in full in our guide to Illinois first-time home buyer programs, and the wider local picture in our Illinois first-time home buyer guide. In many cases you can stack a city program with a state program to cover most or all of your cash to close — a lender who works with both can structure it.
What it takes to buy in Chicago
The Chicago metro median sale price runs roughly $350,000 to $380,000, and many city neighborhoods and condos sit well below that — making Chicago comfortably the most affordable of the country’s largest metros. A typical home is within reach on a household income in the $85,000 to $110,000 range, and a program like Homegrown can erase much of the down payment on top of that.
Before you shop, pin down your budget. Our home affordability guide walks through how income, debt, and rates set your price range, and our first-time home buyer checklist keeps the rest of the process on track.
Loan options for Chicago buyers
Most Chicago first-time buyers use one of a few loan types, each of which can pair with the assistance above:
- FHA loans — 3.5% down with flexible credit, popular with first-time buyers
- Conventional loans — as little as 3% down, with reduced mortgage insurance through state HFA versions
- VA and USDA loans — zero down for eligible veterans and in qualifying areas
- Down payment assistance — city and state programs that layer on top (see our down payment assistance guide)
How to buy your first home in Chicago
- Check your budget and credit first — see our guide to credit score requirements.
- Complete a homebuyer education course — nearly every Chicago and Illinois program requires one, and it is usually free.
- Find a lender who works with both Chicago and Illinois programs, and ask them to run the city and state options together.
- Get pre-approved, then line up your assistance before you make an offer.
One note: local and state program funding and terms change, and some rounds close when the money runs out. Always confirm current amounts and availability with the program administrator before counting on a figure.
Chicago first-time buyer FAQ
What down payment help is available in Chicago?
The big new option is the Homegrown Purchase Assistance Program, a City of Chicago grant of $10,000 to $70,000, with the largest amounts for lower-income buyers and certain zones. The Building Neighborhoods and Affordable Homes program discounts newly built or rehabbed homes in targeted areas, and Neighborhood Housing Services of Chicago offers additional grants and counseling.
Can I combine Chicago city programs with Illinois state programs?
Often yes. City or county assistance is usually designed to layer on top of a first mortgage, and many buyers stack it with a Illinois state program to cover most of their down payment and closing costs. A lender who participates in both can confirm what combines. See our Illinois programs guide for the statewide options.
Do I have to be a first-time buyer to qualify in Chicago?
Homegrown does not use a strict “first-time” test, but it excludes current homeowners, and you must occupy the home as your primary residence. It serves buyers up to 150% of area median income, with larger grants at lower incomes. A homebuyer education certificate is required. Because it is new and funding-limited, confirm the program is still accepting applications.
What is Chicago’s Homegrown program and is it still open?
Homegrown is a City of Chicago down payment grant launched in 2026, providing $10,000 to $70,000 depending on your income tier and whether the home is in a high-appreciation (Zone A) or qualified low-income (Zone B) area. It requires a 1% contribution and five years of living in the home. Because it is funded by a limited bond allocation, availability can run out — confirm it is still accepting applications with the city or an administering partner before you count on it.