Homebuyer Assistance Program

Homebuyer Assistance Program is a forgivable loan for homebuyers in Normal, Illinois. The Town of Normal Down Payment Assistance Program (also marketed as the Homebuyer Assistance Program), administered by the Inspections / Community Development office, provides up to $5,000 in down payment assistance to income-qualified homebuyers (not limited to first-time buyers) purchasing a primary residence within the Town of Normal. Funded through CDBG, the assistance is structured as a 0%-interest 5-year forgivable second-mortgage loan. The Town's funds cannot exceed 50% of the buyer's down payment. Up to $5,000 in down payment assistance, structured as a 0%-interest 5-year forgivable second-mortgage loan, for income-eligible homebuyers purchasing a primary residence within the Town of Normal corporate limits. Town's funds may not exceed 50% of the down payment. Funded through CDBG. awarded first-come, first-served subject to fund availability. Funding comes from Federal CDBG and Local Government.

Homebuyer Assistance Program offers up to $5,000 in assistance. Homebuyer contribution: Buyer's personal funds toward down payment/closing costs must not exceed 10% of contract purchase price; buyer must retain minimum $1,000 in bank account after closing. The program can be combined with other assistance, subject to the rules of each. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Homebuyer Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by 5-year forgiveness period. If property is sold, transferred, refinanced (cash-out), or no longer the borrower's primary residence within 5 years, the unforgiven balance becomes due. The assistance is recorded in 2 position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Homebuyer Assistance Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No published Normal-specific minimum; first-mortgage product credit-score minimums apply. Residency requirement: Property must be located within the Town of Normal, IL, and serve as borrower's primary residence (no apartments or mobile homes). Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules. Annual household adjusted gross income must be at or below 80% HUD AMI for the Bloomington, IL HMFA (approximate range $61,250 1-person to $115,500 8-person under 2025 HUD limits). Property must be located within the Town of Normal and be owner-occupied (apartments and mobile homes do not qualify). Housing-to-Income (front-end) ratio must not exceed 36%; Total Debt-to-Income (back-end) ratio must not exceed 43%. Personal funds toward down payment/closing costs must not exceed 10% of the contract purchase price. Town's funds cannot exceed 50% of the down payment. Buyer must retain a minimum of $1,000 in a bank account after down payment/closing costs. Program is NOT limited to first-time homebuyers but is restricted to income-qualified buyers.

Homebuyer Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household adjusted gross income at or below 80% HUD AMI for the Bloomington, IL HMFA. 2025 approximate range: $61,250 (1-person) to $115,500 (8-person). 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.

Homebuyer Assistance Program caps the purchase price as follows: No published Normal-specific maximum purchase price; buyer's personal contribution may not exceed 10% of contract purchase price. Eligible property types include Single-family detached, Townhome, and Condominium. New construction is eligible. Manufactured homes are not eligible.

Homebuyer Assistance Program serves homebuyers purchasing in Normal, Illinois.

Applications for Homebuyer Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application submitted by lending institution to Town of Normal; awarded first-come, first-served subject to fund availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.