Down Payment Assistance Program
As of April 1, 2021, the Town has funding available for up to eight $5,000 grants to qualified, would-be homeowners. As this is a needs-based program, applicants do not have to be first-time homebuyers and grants are only awarded to those who would not qualify for a loan without this financial assistance. Grants are reviewed and awarded on a first come, first serve basis.
An applicant may apply for this grant in an amount up to $5,000. However, as this grant is based on the financial need of the homebuyer, the final amount awarded may not necessarily equal the full amount that is requested. The funds may be used for the down payment, closing costs, or a combination of the two. Eligible costs include escrow payments made at the time of an offer, lending institution fees and required contributions and filing and recording fees.
To apply for assistance under this program, please contact your lending institution. All applications for assistance must be received by the Town from the lending institution directly.
Click on the links below for additional program information, application materials, and policies:
Eligibility & HUD Income Guidelines
Requirements and qualifications include:
- The home being purchased must be located within the Town of Normal and owner-occupied (apartments and mobile homes do not qualify)
- The gross income of the homebuyer/household must fall within the guidelines established by HUD (listed below)
- The House-to-Income Ratio must not be greater than 30%
- The Total Debt-to-Income Ratio must not be greater than 37%
- Personal funds of the homebuyer going toward down payment/closing costs must not exceed 10% of the contract purchase price of the home
- The homebuyer must retain a minimum of $1,000 in a bank account after the down payment/closing costs have been paid
|One Person||Two Persons||Three Persons||Four Persons||Five Persons||Six Persons||Seven Persons||Eight Persons|