See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 15, 2026
Homebuyer Programs in Bloomington, IL (2026)
Bloomington is the larger half of the Bloomington-Normal twin cities in central Illinois, home to State Farm Insurance and Illinois Wesleyan University. Median home prices in Bloomington hover around $260,000. The City of Bloomington runs its own Homebuyer Mortgage Assistance (HMA) program offering up to $10,500 as a 0% forgivable loan for purchases inside city limits, and statewide IHDA programs layer on top: IHDAccess Home (up to $15,000), IHDA Access Forgivable (up to $6,000 forgiven over 10 years), and IHDA Access Deferred (up to $7,500). Habitat for Humanity of McLean County builds and sells affordable homes locally at 1402 W Washington St. Stacked together, a qualifying Bloomington buyer can access $15,000 to $25,000+ in combined assistance.
City Programs in Bloomington
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Bloomington Homebuyer Mortgage Assistance (HMA) | Forgivable Loan | Up to $10,500 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $10,500
- First-time only:
- No
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount) | No | View → |
| IHDA Access Deferred | Deferred Loan | — | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | — | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | — | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | — | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | — | Yes | View → |
| IHDAccess Home | Deferred Loan | — | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | — | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $10,000 forgivable grant (lesser of $10,000 or 25% of the first mortgage amount)
- First-time only:
- No
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- First-time only:
- Yes
- Type:
- Tax Credit
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
- Type:
- Deferred Loan
- First-time only:
- Yes
- Type:
- Forgivable Loan
- First-time only:
- Yes
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity McLean County Homeownership Program | Zero-Interest Loan | Affordable home with 0% interest mortgage (no down payment required) | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with 0% interest mortgage (no down payment required)
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. The City of Bloomington HMA program requires owner-occupancy within 30 days of closing for properties inside Bloomington city limits. IHDA programs require first-time buyer status (no homeownership in the past three years) and have a McLean County income limit of about $142,560 for most products.
Step 2: Complete HUD-approved homebuyer education. Any HUD-approved counseling agency certificate qualifies for the City HMA program and IHDA. Habitat for Humanity of McLean County can point buyers toward local counseling resources.
Step 3: Contact the City of Bloomington Community Impact and Enhancement Department to apply for the Homebuyer Mortgage Assistance program. Confirm current funding availability and the forgiveness end date before making an offer.
Step 4: Get pre-approved with an IHDA-participating lender. IHDA maintains a statewide lender directory at ihda.org. Your lender will determine which IHDA product — Access Home, Access Forgivable, Access Deferred, Access Repayable, or SmartBuy — fits best and whether it layers with the City HMA.
Step 5: Find a home within program limits. The City HMA requires the property be inside Bloomington city limits. IHDA has statewide purchase price limits that update annually — most of Bloomington's market fits.
Step 6: Submit your combined application. City HMA and IHDA assistance can often layer on the same transaction; both must be approved before closing. Plan for 30 to 60 days from contract to close.
Step 7: Close and occupy. The Bloomington HMA is a 0% forgivable loan — verify the current forgiveness schedule and occupancy requirement with the City before closing. IHDA forgivable assistance is forgiven over 10 years. Keep the home as your primary residence.
Frequently Asked Questions
How much down payment assistance can I get in Bloomington?+−
Do I have to be a first-time homebuyer?+−
What is the maximum home price in Bloomington?+−
What homebuyer education is required?+−
Does the City of Bloomington HMA forgive the full loan?+−
Does Habitat for Humanity build homes in Bloomington?+−
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