Is there home purchase assistance available?

The City of Chicago and HCBA have teamed up to bring TaxSmart mortgages, which provide a federal income tax credit each year of the mortgage.

Bungalow TaxSmart

NOTE: The TaxSmart program is currently unavailable.  Please check back periodically for updated news and information.

TaxSmart is a mortgage program that provides a federal income tax credit to qualified homebuyers. A tax credit is a direct reduction of taxes due. Under the program, a homebuyer would receive a credit to reduce income taxes by an amount equal to 20% of the interest paid on a mortgage. The tax credit may be claimed each year the homebuyer continues to live in a home financed under this program. Eligible borrowers must have the certified Historic Chicago Bungalow as a primary residence and be first time homebuyers.

Benefits of Bungalow TaxSmart:

  • Reduces Federal Income Tax by 20 percent of the annual interest paid each year for the life of the mortgage.
  • Competitive interest rates.
  • $500 voucher for an energy efficient appliance.

Important Information

The TaxSmart application must be secured before purchase is complete.

For more information and complete income limits and requirements, click here.