November 19, 2020

The Federal Home Loan Bank of Chicago’s (FHLBank Chicago) 2021 Downpayment Plus (DPP^®) and Downpayment Plus Advantage^® (DPP Advantage^®) programs will open Tuesday, January 19. In 2021, participating members may reserve up to $420,000 in the general pool on a first-come, first-served basis to help their income-eligible borrowers with down payment and closing costs. There is no limit in the DPP Advantage pool.

Key changes to the 2021 DPP programs are summarized below.

• Annual Certification Form (new for 2021) – In order to participate in the 2021 DPP programs, member institutions who provided DPP funds in 2020 must submit an Annual Certification Form before making any new reservations in 2021. Additionally, acquirers of (former) members with DPP grants within the five-year retention period are required to complete the annual certification form.
• Retention Agreement – The Retention Agreement for Illinois and Wisconsin properties has been updated to remove the member’s signature. This new Retention Agreement is required for all new reservations effective with the 2021 DPP programs. Since this retention agreement is for Illinois or Wisconsin properties only, please review and update any retention agreement forms used for properties in other states.
• Beneficiary Questionnaire – Effective with the 2021 DPP program reservations, the Household Member Questionnaire replaces the Beneficiary Questionnaire form.
• Pre-purchase homebuyer education and counseling requirement – Effective with the 2021 DPP program reservations, members may use a HUD-approved counseling agency to meet the pre-purchase homebuyer education and counseling requirement.
• Repayment Worksheet – The Repayment Worksheet, with instructions, has been updated based on further Federal Housing Finance Agency guidance during 2020. The updates include:
  
  • Updated net proceeds calculation
    
  • Updated household investment calculation
• Demographic data: Effective with the 2021 DPP program reservations, members are required to provide demographic data in DPP Online. The information is typically found in the mortgage loan application – Fannie Mae form 1003. DPP Online allows up to two borrowers’ demographic information. The new fields include:
  
  • Ethnicity
    
  • Sex
    
  • Race

• Wednesday, December 2: 11:00 a.m. – 12:00 p.m.
• Tuesday, December 8: 1:00 p.m. – 2:00 p.m.
• Tuesday, January 12: 11:00 a.m. – 12:00 p.m.

Members may use our customizable marketing flyers to promote access to the program. The DPP educational videos and program guide will be updated to reflect program changes prior to January 19.

Please contact us at 312-565-5824 or dpp@fhlbc.com with any questions.