Downpayment Plus®

Summary: The Downpayment Plus® program (DPP) is a down payment assistance program funded by the Affordable Housing Program of the Chicago Federal Home Loan Bank (Chicago FHLB) and managed by the Partnership. The program offers assistance to income-qualified buyers. Lender members of the Chicago FHLB can follow this link to the Downpayment Plus® screens. Consumers wishing to access DPP funds can go to the Downpayment Plus® Consumer Center.

Wisconsin Partnership's role: Financing program manager

Staff contacts: Lisa Kratz; Jennifer Buckles

Status of work: Ongoing

The Downpayment Plus® program is a home purchase assistance program funded by the Affordable Housing Program of the Chicago Federal Home Loan Bank. 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.

DPP funds become permanent grants after five years. Buyers who sell their homes before five years have passed must repay part of the grant. All Wisconsin lending institutions that are members of the Chicago FHLB are eligible to enroll in the program and make it available in the communities they serve. Basic information for consumers can be found in the online Downpayment Plus® Consumer Center, which is part of the Partnership's website. Prospective buyers interested in applying for DPP funds are advised to contact a local lending institution.

The Partnership was selected to administer DPP in 2001, and the contract has been renewed annually since then, with the 2006 allocation estimated at $2.8 million. The online application process developed by the Partnership has proved useful to loan officers throughout the state.

DPP 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.