Mayor announces new Home Buyer Assistance Program

CHICAGO (WLS) -- Mayor Rahm Emanuel revealed a new plan to help middle and low income families get a home.

The Home Buyer Assistance Program helps cover down payments and closing costs. Through the program, prospective home owners will receive a grant for up to 5 percent of the total loan amount based on income, the mayor's office said. The program is designed to assist families across a range of incomes.

The mayor's office says that for an average Chicago house, typically sold for $250,000, a family could receive a grant of more than $12,000 to help pay for down payment and closing costs. Households with incomes less than $121,600 and credit scores will qualify for the program, and the grants can be used for single family homes or condos.

First time applicants will also have to take a home buyer education class.