Chicago’s $70,000 Homebuyer Grant: What Buyers Should Know Before Writing an Offer
By Carmen Carter, Managing Broker
Carter Realty Group
Chicago’s HomeGrown Purchase Assistance Program may provide up to $70,000 toward down payment and closing costs for eligible buyers purchasing in Chicago. But buyers need to understand that mortgage approval and grant approval are separate, funds are limited, and several requirements can affect whether the buyer ultimately receives grant funds.
What Is Chicago’s $70,000 Homebuyer Grant?
The headlines are everywhere:
“Get up to $70,000 to buy a home in Chicago.”
And while that headline is technically true, it does not tell the whole story.
After reviewing program documents, interviewing lenders, speaking with attorneys, and analyzing how this program fits into a real-world real estate transaction, I have learned that buyers need to understand far more than the grant amount.
This program can create a major opportunity for homeownership, but buyers should not treat the grant as guaranteed money until all program requirements have been reviewed and approved.
Why Buyers May Need a Purchase Contract First
The biggest surprise?
You generally need an executed purchase contract before completing the HomeGrown application process.
That means many buyers may be negotiating, conducting inspections, paying for upfront costs, and moving through a real estate transaction before they know whether they will ultimately receive grant funds.
That does not mean buyers should avoid the program.
It means buyers need a strategy before writing an offer.
The Grant Is Not the Same as Mortgage Approval
Many buyers assume:
Pre-Approval = Grant Approval
Not necessarily.
A lender may approve you for a mortgage while the grant administrator is still reviewing:
Household income
Debt-to-income ratio
Property eligibility
Homebuyer education completion
City debt compliance requirements
Program documentation
Funding availability
These are separate reviews.
A mortgage pre-approval tells you that a lender may be willing to finance the purchase. It does not automatically mean the grant administrator has approved you for the HomeGrown funds.
What Is the Scofflaw Review?
One of the lesser-known requirements is a City compliance review often referred to as a Scofflaw review.
This review may identify:
Unpaid parking tickets
Speed camera tickets
Red light camera tickets
Certain municipal obligations
If issues are found, they generally must be resolved before funding can occur.
In some cases, a payment plan may be allowed. However, that payment plan could potentially create a new monthly debt obligation that affects the program’s 38% debt-to-income requirement.
That is why buyers should review possible City obligations early instead of waiting until they are already under contract.
Why Buyers Need a Plan B
Several lenders are already advising buyers to have a backup strategy.
Why?
Because:
Funds are limited
Approval is not guaranteed
Additional reviews occur
Timelines can vary
Program requirements may change
Property eligibility must still be confirmed
The buyer still has to qualify for the mortgage
The smartest buyers qualify for the mortgage first and view the grant as an opportunity, not a certainty.
Important: The grant should not be the only reason the purchase works. Buyers should understand what their numbers look like with and without the grant.
Can You Use FHA, VA, Conventional, or Renovation Financing?
Current program guidance indicates that fixed-rate financing is required.
Rehabilitation transactions appear to be permitted within certain limits.
Questions remain regarding how some specialized financing options are treated, particularly in situations involving VA financing and other niche loan products.
Before writing an offer, buyers should verify program compatibility with both their lender and the grant administrator.
This is especially important if the buyer is considering:
FHA financing
Conventional financing
VA financing
Renovation financing
Rehabilitation loans
Specialty mortgage products
Do not assume every loan type will automatically work with the grant.
Buyer Readiness Checklist
Before depending on the HomeGrown Grant, buyers should complete a readiness review.
Buyer’s Readiness Checklist:
□ Get pre-approved
□ Complete homebuyer education
□ Review your household income
□ Review your debt-to-income ratio
□ Check for unpaid City obligations
□ Gather income documentation
□ Gather asset documentation
□ Understand the program timeline
□ Confirm property eligibility
□ Confirm loan compatibility
□ Have a backup financing strategy
□ Work with a lender familiar with the program
□ Speak with a real estate professional before writing an offer
How Do You Apply?
Applications are administered through:
OR
www.resurrectionproject.org/Homegrown
Buyers should review the current program requirements directly with the program administrator and confirm details with their lender before writing an offer.
FAQ: Chicago HomeGrown Grant
Is the Chicago HomeGrown grant guaranteed?
No. Buyers must meet program requirements, complete documentation, pass required reviews, and funds must still be available.
Is the grant the same as mortgage approval?
No. Mortgage approval and grant approval are separate. A lender may approve the mortgage while the grant administrator is still reviewing income, debt-to-income ratio, property eligibility, documentation, and City compliance requirements.
Do I need a purchase contract before applying?
In many cases, buyers generally need an executed purchase contract before completing the HomeGrown application process. This is one reason buyers should understand the program before writing an offer.
Can unpaid Chicago tickets affect my approval?
Yes. Unpaid City obligations may come up during the Scofflaw review. These may include parking tickets, speed camera tickets, red light camera tickets, or other municipal obligations.
Can I use FHA with the HomeGrown grant?
Possibly, but buyers should verify program compatibility with their lender and the grant administrator before writing an offer.
Can I use a VA loan with the HomeGrown grant?
Questions remain regarding how some specialized financing options are treated, including VA financing. Buyers should verify compatibility directly with both the lender and the grant administrator before relying on the grant.
Can the grant be used for closing costs?
The program is designed to assist eligible buyers with home purchase costs, which may include down payment and/or closing cost assistance depending on program guidelines.
What happens if the grant funds run out?
If funds are limited or unavailable, the buyer may not receive grant assistance. That is why buyers should have a backup financing strategy.
Final Thoughts
I love programs that create opportunities for homeownership.
But buyers deserve to understand both the benefits and the challenges before they write an offer.
The HomeGrown Grant can be a powerful opportunity, but it should be approached with planning, documentation, and a realistic backup strategy.
If you are considering using the HomeGrown Grant, let’s build a strategy first.
Schedule a Buyer Consultation with Carter Realty Group and we will review your eligibility, financing options, grant opportunities, and backup plans so you can move forward with confidence.
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