Down Payment Assistance

Homebuyer’s Down Payment Assistance Program

Through funding provided by the Community Development Block Grant program, the Town of Normal is proud to offer a Homebuyer’s Down Payment Assistance Program. This program provides up to a $3,000 grant for the purchase of a home in Normal IL. The grant can be used to offset down payment and related closing costs from your lending institution.

This program is not limited to first-time homebuyers, but is restricted to those meeting income criteria set by the U.S. Department of Housing and Urban Development (HUD) and a few other qualifications. The property being purchased must be located in the Town of Normal. Mobile homes are not eligible under the program. Upon receiving the assistance, a second mortgage will be placed on your home in the amount of the grant. The mortgage will last five years, with twenty percent of the amount being forgiven each year you remain in the house. After five years the second mortgage will be released.

To apply for assistance under this program, please contact your lending institution. All applications for assistance must be received from the lending institution directly.
Letter to Lenders

Qualifications and Application

HUD Income Guidelines

Qualifying income limits, which are subject to change at any time without notice, are based on household size. Income from all persons in the household will be considered. A household is defined as any person living in the home, regardless of family relation. Listed below are the limits as of the date of March 28, 2016:

One Two Three Four Five Six Seven Eight
Person Persons Persons Persons Persons Persons Persons Persons
$76,250 $81,500
If you have further questions please contact Deanna Mocchi at (309) 454-9586.