Downpayment Assistance
The Town of Normal offers Downpayment/Closing Cost assistance to eligible homebuyers in Normal. This program is not restricted to first time homebuyers. In order to qualify:
- You must be purchasing a home in Normal. Mobile Homes are not eligible and we cannot fund Contracts for Deeds.
- You must meet income guidelines for your family size. Family size includes all persons who will reside in the home. These income limits change from time to time so please call to check the current numbers.
- Your lender must state to us in writing that without our assistance, you would not qualify for the loan.
You do not have to apply to us. Just tell your lender that you want the use the Town of Normal Downpayment Assistance Program. Your lender will require various information from you, the same information we need. We will obtain copies from the lender.
The Town will provide a dollar-for-dollar match of your funds to assist in payment of the required downpayment and closing costs. The maximum the Town will provide is $3,000.00. The source of your matching funds is not a concern to the Town – it may be your own savings, a gift/loan from a friend or relative, or funds from another program.
We will put a second mortgage on the property in the amount of our grant. This 2nd will last 10 years and be forgiven, without you having to make a payment, at the rate of 10% per year as long as you continue to own and occupy the home. So, if you live there for 10 years, you would owe nothing. If you moved out in 5 years, and had received $3,000 from the Town, you would owe $1,500.
Please contact Steven Westerdahl at (309) 454-9557 or swesterdahl@normal.org or Becky Strack at (309) 454-9556 or bstrack@normal.org for further information.