See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 15, 2026
Homebuyer Programs in Decatur, IL (2026)
Decatur is the county seat of Macon County in central Illinois with one of the most affordable housing markets in the state — the Zillow typical home value sits near $95,000 and median list prices run about $150,000. The City of Decatur runs its own Homebuyer Assistance Program offering up to $14,999 as a 0% interest, five-year deferred forgivable loan for single-family homes priced between $25,000 and $117,800 within city limits. Statewide IHDA programs layer on top, including 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). Decatur Area Habitat for Humanity builds affordable homes locally at 932 East Wood Street. Stacked together, a qualifying Decatur buyer can often cover their entire down payment and closing costs with $15,000 to $25,000+ in combined assistance — and with a median home price under $100,000, meaningful home equity is achievable quickly.
City Programs in Decatur
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Decatur Homebuyer Assistance Program | Forgivable Loan | Up to $14,999 | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $14,999
- First-time only:
- No
State Programs in Illinois
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHLBank Chicago Downpayment Plus (DPP) | Grant | Up to ,000 | No | View → |
| IHDA Access Deferred | Deferred Loan | 5% of purchase price up to ,500 | Yes | View → |
| IHDA Access Forgivable | Forgivable Loan | 4% of purchase price up to ,000 | Yes | View → |
| IHDA Access Repayable | Zero-Interest Loan | 10% of purchase price up to ,000 | Yes | View → |
| IHDA Mortgage Credit Certificate (MCC) | Tax Credit | Federal tax credit: 25% of annual mortgage interest (capped at ,000/year) | Yes | View → |
| IHDA SmartBuy | Forgivable Loan | ,000 DPA plus up to ,000 toward student loan payoff | Yes | View → |
| IHDAccess Home | Deferred Loan | Up to ,000 (6% of purchase price) | Yes | View → |
| Opening Doors / Abriendo Puertas | Forgivable Loan | Up to ,000 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to ,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- 5% of purchase price up to ,500
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- 4% of purchase price up to ,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- 10% of purchase price up to ,000
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Federal tax credit: 25% of annual mortgage interest (capped at ,000/year)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- ,000 DPA plus up to ,000 toward student loan payoff
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Up to ,000 (6% of purchase price)
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to ,000
- 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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 |
|---|---|---|---|---|
| Decatur Area Habitat for Humanity 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
Check your eligibility. The City of Decatur Homebuyer Assistance Program requires household income at or below 80% of HUD area median income, total non-retirement assets under $50,000, and a signed purchase contract on a single-family home priced between $25,000 and $117,800. IHDA programs have their own (generally higher) income caps.
Complete HUD-approved homebuyer education AND a City-approved property maintenance course. The City specifically requires both certificates for its Homebuyer Assistance Program.
Get pre-approved with a participating lender. The City of Decatur program requires financing through Heartland Bank & Trust, Regions Bank, or Busey Bank. Contact them first — if you're also pursuing IHDA assistance, confirm the lender is also IHDA-approved so the two programs can layer.
Apply to the City of Decatur Homebuyer Assistance Program. Bring your signed contract, income documentation, asset statements, and your homebuyer education and property maintenance certificates to the City's Neighborhood Revitalization office.
Find a home within program limits. The City program is capped at $117,800 purchase price for single-family detached homes inside Decatur city limits. IHDA statewide purchase price limits are higher. With Decatur's median typical home value around $95,000, plenty of inventory qualifies.
Submit your combined application. City 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.
Close and occupy. The City of Decatur loan is a 5-year deferred forgivable loan at 0% interest. IHDA forgivable assistance is forgiven over 10 years. Keep the home as your primary residence to earn full forgiveness on both.