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HOME Buyer Down Payment Assistance Program

City of Decatur, Economic and Community Development Department, Neighborhood Revitalization Division · Decatur, Illinois

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See what you qualify forOfficial program site →
Assistance

$14,999

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$120,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is HOME Buyer Down Payment Assistance Program?

HOME Buyer Down Payment Assistance Program is a forgivable loan for homebuyers in Decatur, Illinois, administered by City of Decatur, Economic and Community Development Department, Neighborhood Revitalization Division.

  • The City of Decatur's HOME Buyer Down Payment Assistance Program provides up to $14,999 in down payment and closing cost assistance to low- and moderate-income homebuyers purchasing a single-family detached home within the City of Decatur corporate limits. Assistance is a 0 percent interest, five-year deferred forgivable loan secured by a second mortgage, forgiven in full after the owner occupies the home as a principal residence for 60 months. The program is funded through the federal HOME Investment Partnerships Program. Applicants must secure first-mortgage financing from a participating lender, complete HUD-certified counseling, and attend a residential property maintenance class.
  • Up to $14,999 toward down payment and closing costs.
  • 0 percent interest, no monthly payments.
  • Forgiven in full after 5 years of owner-occupancy.
  • Repaid only from net sale proceeds on a covered sale (excess forgiven).
  • No prepayment penalty.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from Federal HOME Investment Partnerships Program; the division also administers CDBG.

How much assistance does it provide?

HOME Buyer Down Payment Assistance Program offers up to $14,999 in assistance.

  • Buyer contribution: Applicant must provide a minimum 2 percent down payment (earnest) from their own funds (no gifts, loans, or grants) and demonstrate at least $1,000 toward down payment, insurance, and other costs.
  • Amounts are the program's published maximums, not an offer — City of Decatur, Economic and Community Development Department, Neighborhood Revitalization Division determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by Repayment of the unforgiven portion is triggered within the 5-year recapture period by sale/transfer for consideration; the home ceasing to be the principal residence or conversion to rental; refinancing other than a permitted refinancing; or default. The loan is forgiven in full after 60 months of owner-occupancy.
  • The assistance is recorded in Second position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer defined as no ownership interest in a principal residence during the 3 years prior to application; displaced homemakers are exempt from the waiting period.
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through HUD-certified housing counseling agency (e.g., Community Investment Corporation of Decatur); must also attend a residential property maintenance class.
  • Residency: Property must be within the City of Decatur corporate limits.
  • Retirement assets (IRA/401K) excluded from the $50,000 asset limit but cannot exceed $75,000. Maximum front-end housing ratio 30 percent; back-end ratio 42 percent. Three years of signed federal income tax returns required for each borrower and all occupants 18-plus. City of Decatur named additional insured on title and hazard insurance. Applicant cannot owe the City any fines, fees, or taxes. Subordination permitted only once during the affordability period for a rate-and-term refinance (rate at least 1 percent lower; no cash-out). GAP: minimum credit score not stated. GAP: annual funding cap not stated. GAP: exact per-applicant amount not stated (need-based). GAP: required mortgage term not specified. GAP: the manual income table is labeled FY2024 while the 2025-2026 flyer publishes higher limits (4-person $73,300, used here).

The program excludes

  • Manufactured homes
  • New construction
  • Purchases above the $120,000 price cap
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

HOME Buyer Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80 percent of HUD area median income, by household size. FY2025-2026 limits: 1 $51,350; 2 $58,650; 3 $66,000; 4 $73,300; 5 $79,200; 6 $85,050; 7 $90,900; 8 $96,800. Income includes all adults 18-plus who will live in the home.
  • The limit applies to total household income, not only the borrower’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?

HOME Buyer Down Payment Assistance Program caps the purchase price at $120,000.

  • Eligible property types include Single Family.
  • New construction is not eligible.
  • Manufactured homes are not eligible.

Where does it apply?

HOME Buyer Down Payment Assistance Program is a federal program, so it is not limited to Illinois.

How do you apply?

Applications for HOME Buyer Down Payment Assistance Program go through City of Decatur, Economic and Community Development Department, Neighborhood Revitalization Division, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-certified housing counseling agency (e.g., Community Investment Corporation of Decatur); must also attend a residential property maintenance class..

  2. Contact City of Decatur, Economic and Community Development Department, Neighborhood Revitalization Division to reserve funds

    Funds are reserved through Funds are limited; not allocated or reserved until all required documentation is satisfied and an environmental review is completed., and are subject to availability.

  3. 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.

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