Downpayment Plus®/Downpayment Plus Advantage®

Summary: The Downpayment Plus® (DPP) and Downpayment Plus Advantage® (DPP Advantage) programs are down payment assistance programs funded by the Affordable Housing Program of the Federal Home Loan Bank of Chicago (FHLBC) and managed in Wisconsin by the Partnership. These programs offer assistance to income-qualified buyers and are accessed either through Members of the FHLBC (for DPP) or through nonprofit organizations such as Habitat for Humanity (for DPP Advantage). Lender Members of the FHLBC can follow this link to the Downpayment Plus® screens. Home buyers wishing to access DPP or DPP Advantage funds can go to the Downpayment Plus® home buyer screens.

Wisconsin Partnership's role: Financing program manager

Staff contacts: Lisa Kratz

Status of work: Ongoing

The Downpayment Plus® program (DPP) is a home purchase assistance program funded by the Affordable Housing Program of the Federal Home Loan Bank of Chicago (FHLBC). Through the program, income-qualified home buyers can received grants of up to $5,000 toward a down payment, closing costs, reserves, home ownership counseling or other expenses related to home purchase. All Wisconsin lending institutions that are Members of the FHLBC are eligible to enroll in the program and make it available in the communities they serve. The online application process developed by the Partnership has proved useful to loan officers throughout the state. Prospective buyers interested in applying for DPP funds are advised to contact a local lending institution.

The Downpayment Plus Advantage® program (DPP Advantage) is also a home purchase assistance program funded by the Affordable Housing Program of the Federal Home Loan Bank of Chicago (FHLBC). However, DPP Advantage funds are available only to income-qualified buyers who purchase their homes through nonprofit organizations such as Habitat for Humanity.

Both DPP and DPP Advantage funds become permanent grants after five years. Buyers who sell their homes before five years have passed must repay part of the grant. Basic information for home buyers can be found in the online Downpayment Plus® home buyer screens, which are part of the Partnership's website.

The Partnership was selected to administer DPP in 2001, with DPP Advantage added in 2004. The contract has been renewed annually, with the 2007 allocation estimated at $2.4 million.

Program lending statistics demonstrate that the program is effective in reaching households that are underserved in the real estate market. Historically more than 25% of the loans have gone to racial or ethnic minorities. Borrowers' average annual household income has been just over $30,000.

"Downpayment Plus," "DPP," "Downpayment Plus Advantage" and "DPP Advantage" are registered trademarks of the Federal Home Loan Bank of Chicago.