Down Payment Assistance Program – Town of Normal | Illinois grant

Down Payment Assistance Program – Town of Normal

Open

Town of Normal Housing & Community DevelopmentILFirst-Time Homeowner

Funding: Provides up to 5,000 dollars in assistance as a 0 percent interest loan that is forgiven over a five-year period when the buyer continues to occupy the home and complies with program requirements, with funds usable toward both down payment and closing costs.Local down payment assistance program that offers a modest zero-interest, forgivable second loan to help income-eligible buyers cover down payment and closing costs on owner-occupied homes in the Town of Normal.RollingDeadline: Scope: Town (Normal, Illinois)state

Updated: Dec 6, 2025

Summary

Local program aimed at increasing homeownership by helping qualified homebuyers with upfront costs in the Town of Normal through modest assistance and favorable loan terms.

Benefits

down payment assistanceclosing cost assistanceforgivable loan0 percent interesttown program

Who Can Apply

homebuyerlow-income homebuyerIllinois homebuyerNormal homebuyer

Eligible Locations

Homebuyers with household income at or below 80 percent of area median income purchasing an owner-occupied single-family home within the Town of Normal, Illinois, whose remaining bank balance after closing includes at least 1,000 dollars, whose property meets program standards, and who agree to live in the home as their primary residence during the five-year forgiveness period; buyers are not required to be first-time owners.

Eligibility

Income at or below 80% AMI, home must be owner-occupied single-family within the Town of Normal, minimum contribution $1,000 remains in bank, homebuyer not required to be first-time.

Full Description

The Town of Normal’s DPA program offers eligible buyers up to $5,000 in assistance for down payment and closing costs, structured as a zero-interest forgivable loan over a 5-year term. Applicants must meet HUD income limits (≤ 80% AMI) and home must be located in Normal, be owner-occupied, and not a mobile home.

Verification & Details

Status: Open

Source: normalil.gov

Official source → normalil.gov

Apply on official siteUpdated Dec 6, 2025

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