City of Carbondale Down Payment Assistance Program

What is City of Carbondale Down Payment Assistance Program?

City of Carbondale Down Payment Assistance Program is a forgivable loan for homebuyers in Carbondale, Illinois, administered by City of Carbondale, Community Development / Development Services Department.

• Provides funding to prospective first-time homebuyers within Carbondale city limits toward the down payment of their first home. The City provides between $500 and $3,000 as a forgivable grant requiring a proportional owner match by income tier, with a 5-year restrictive covenant recaptured prorated at 1/60th per month if owner-occupancy ceases.
• Up to $3,000 toward down payment (minimum $500).
• Forgivable grant (1/60th per month, fully forgiven after 5 years).
• No interest.
• Funds paid after closing.
• Funding comes from City of Carbondale municipal funds.

How much assistance does it provide?

City of Carbondale Down Payment Assistance Program offers between $500 and $3,000 in assistance.

• Award tiers: Owner-match by income vs. Median Area Income (MAI): 80%+ MAI=100% match; 50-<80%=80%; 30-<50%=50%; <30%=30%. On a $2,000 project: 80%+ -> $1,000 City grant; 50-80% -> $1,200; 30-50% -> $1,500; <30% -> $1,700.
• Amounts are the program's published maximums, not an offer — City of Carbondale, Community Development / Development Services Department determines any individual award.

Do you have to pay it back?

City of Carbondale Down Payment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Pro-rata recapture (1/60th per remaining month) if the home ceases to be owner-occupied within 5 years.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Carbondale Down Payment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Carbondale Down Payment Assistance Program limits household income to 180% of the area median income, which varies by county and household size.

• Household cannot earn more than 180% of HUD Median Area Income (MAI) for Jackson County. 2023 180% by size: 1 $101,340; 2 $115,740; 3 $130,140; 4 $144,540; 5 $156,240; 6 $167,760; 7 $179,280; 8 $190,800. (80% 4-person = $64,240.) Income tier also sets the required owner-match percentage.
• The limit applies to total household income, not only the borrower&rsquo;s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Carbondale Down Payment Assistance Program can be used for Single Family.

Where does it apply?

City of Carbondale Down Payment Assistance Program serves buyers purchasing in Carbondale, Illinois.

How do you apply?

Applications for City of Carbondale Down Payment Assistance Program go through City of Carbondale, Community Development / Development Services Department, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Carbondale, Community Development / Development Services Department to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.