New program delivers mortgage rates approximately 250 basis points below market and flexible underwriting to help member institutions support Habitat affiliates and low-to-moderate income homebuyers
CHICAGO, March 10, 2026–(BUSINESS WIRE)–The Federal Home Loan Bank of Chicago (FHLBank Chicago) has launched its Mortgage Partnership Finance® (MPF®) Habitat for Humanity® Program, a new community lending offering designed to help member financial institutions partner with Habitat for Humanity affiliates across Illinois and Wisconsin to deliver below-market mortgage financing to low-to-moderate income homebuyers.
Through the program, FHLBank Chicago approved members can deliver mortgage loans originated for homebuyers working with Habitat for Humanity affiliates at interest rates approximately 250 basis points below prevailing market rates, with the rate discount funded by FHLBank Chicago, while still receiving premium pricing to help offset the cost of loan origination. The program is backed by $2.5 million in interest rate subsidies, supporting $20-25 million in funded unpaid principal balance in 2026.
Program Features and Benefits
The MPF Habitat for Humanity Program introduces a standardized, scalable pathway for members to deepen their Habitat partnerships while strengthening their community investment footprint. Key features include expanded underwriting flexibility and seamless integration with existing MPF delivery commitment and funding processes.
Accelerating Habitat’s Mission
Under the traditional Habitat for Humanity model, affiliates return to fundraising after each home delivery, creating delays before the next construction cycle can begin. By selling loans to the MPF Program at below-market rates, members can expand first-mortgage financing capacity, return more capital to Habitat affiliates, and help accelerate the start of the next construction cycle—growing housing supply and enabling more families to achieve homeownership.
Why It Matters
“Affordable homeownership is one of the most powerful drivers of long-term financial stability for families and communities. Through this program, we’re giving our member institutions a meaningful tool to deepen their Habitat partnerships and help more low-to-moderate income families across Illinois and Wisconsin achieve the dream of owning a home,” said Patrick Sullivan, Executive Vice President, Group Head, MPF Program. “By delivering mortgage rates approximately 250 basis points below market, we’re not just making homeownership more accessible — we’re helping Habitat affiliates accelerate their construction cycles and serve more families, faster.”