Written by Jenni Badtke, AVP – Mortgage Lending

Learn how these down payment assistance programs could help.

When you think about buying a home, the idea of saving for a 20% down payment might feel overwhelming. While putting 20% down has long been considered typical, it’s not a requirement to qualify for a mortgage loan. In fact, there are several options available that could help bridge the financial gap, such as Private Mortgage Insurance (PMI) and homebuyer assistance programs—like the Downpayment Plus^® (DPP)* program offered through Wolf River Community Bank.

What is Downpayment Plus^® (DPP)?

DPP is a grant program from the Federal Home Loan Bank of Chicago that provides down payment and closing cost assistance for income-eligible homebuyers. It’s designed to make the path to homeownership a little easier by helping cover some of the upfront costs of purchasing a home.

Here’s what you need to know:

• 💰 MAXIMUM GRANT AMOUNT: The lesser of $10,000 or 25% of the first mortgage amount.
• 💵 MINIMUM CONTRIBUTION: Borrowers must contribute at least $1,000 toward the purchase.
• 🎁 FORGIVABLE GRANT: The grant is forgiven after 5 years if the buyer remains in the home—no repayment required! If the buyer moves out or sells the home before the 5 years, the grant repayment is pro-rated based on how many full years have passed.
• 🏡 ELIGIBLE PURCHASES ONLY: The grant is available only for home purchases that are owner-occupied (not for refinancing).
• 🎓 EDUCATION REQUIREMENT: One borrower must complete a homebuyer education course and a one-on-one counseling session.
  • Education can be completed online through providers like Frameworks, eHome America, Fannie Mae HomeView, or Freddie Mac CreditSmart.
  • Counseling must be provided by a HUD-approved agency, in-person or over the phone.

Watch the video below and hear how the Downpayment Plus^® program helped Ethan purchase his first home!

What Can the Funds Be Used For?

The DPP grant is flexible and can be used to cover:

• Down payment costs
• Closing costs
• Tax and insurance escrow reserves
• Up to $500 of the cost of homebuyer education and counseling

Additionally, the loan can be either a fixed-rate or an Adjustable-Rate Mortgage (ARM) product—as long as the initial rate is locked in for at least five years.

Do You Qualify for the Down Payment?

Eligibility is based on household income, which must be at or below 80% of the median income limits set by the U.S. Department of Housing and Urban Development (HUD). These limits vary depending on your county and household size.

To determine eligibility, your lender will typically review:

• Your last 3 paystubs
• Your past 2 years of W-2s

They will input this information into an income calculator to see if you qualify for the grant.

More Assistance Might Be Available

In addition to the DPP program, other local, state, or nonprofit organizations may offer down payment assistance programs. Employers or trade unions sometimes also provide grants or forgivable loans to employees or members who are purchasing a home.

How One Grant Made a Dream Come True

Buying a home can feel like a huge mountain to climb—especially when you’re doing it on your own. But with down payment assistance, that mountain can start to feel more like a manageable hill.

Just ask Tricia W., who worked with me to obtain the Downpayment Plus^® grant:

“Buying a home on my own has been a goal for a while, but this grant is really what helped make it happen. The hardest part about buying a home is making the sacrifices in life to save up the initial down payment, but the grant really helps to propel you ahead in that step. The requirements to receive the grant are very simple and straightforward. The process really helps you learn a lot about the steps to becoming a homeowner that you have no way of knowing until you start the process and helps evaluate if you are ready to take on homeownership or not.”

Her experience is proof that with the right tools, education, and financial support, becoming a homeowner is truly within reach—even when it once seemed far away.

Ready to Explore Your Options?

Homeownership is closer than you think. With programs like Downpayment Plus^®, buyers can get the extra boost they need to step confidently into their new home. If you’re considering buying, start the conversation early so you can meet the qualifications and take full advantage of the assistance available.

Wolf River Community Bank is here to guide you every step of the way. Reach out to me or one of our other mortgage lenders at Wolf River Community Bank to learn more about Downpayment Plus^® or other assistance options that may be right for you.