Normal Homebuyer’s Down Payment Assistance Program

With the knowledge that many individuals are stuck in a renters’ trap due to the heavy out-of-pocket costs of purchasing a new home, the Town of Normal offers the Homebuyer’s Down Payment Assistance Program. Funded by the Community Development Block Grant program, this program covers a portion of the down payment for eligible applicants.

Available Assistance
The program provides applicants up to a $3,000 grant, to be put toward the down payment and related closing costs included in the mortgage transaction. Upon receiving the assistance, a second mortgage will be placed on the applicant’s home. This loan comes with no interest, and no monthly payments. 20 percent of the loan amount will be forgiven each year that the applicant occupies the house; the amount is forgiven entirely within 5 years.

Eligibility Requirements
Unlike most down payment assistance programs, this one does not come with a first-time homebuyer requirement. It is however, restricted to those individuals who fall under the program’s maximum income limits, based on household size (shown below). Any home being purchased with program funds must serve as the applicant’s primary residence, and be located in the Town of Normal. Mobile homes are not eligible under the program.

Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.

1 person household: $46,000
2 person household: $52,600
3 person household: $59,150
4 person household: $65,700
5 person household: $71,000
6 person household: $76,250          
7 person household: $81,500
8 person household: $86,750

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.