What is the Decatur Homebuyer Initiative?
Decatur Homebuyer Initiative (DHI) is a rehab-to-abandonment program led by the Community Investment Corporation of Decatur (CICD) in partnership with the City of Decatur, the Central Illinois Land Bank Authority, and several other collaborators. The program’s primary goal is to revitalize Decatur’s neighborhoods and foster a renewed interest in living in the area.
It specifically targets first-time homebuyers particularly those who may have previously believed that ownership was beyond their reach. Many of these candidates come from families with a long history of renting rather than owning. DHI aims to challenge this mindset and demonstrate that homeownership is an achievable goal for everyone.
How does the Decatur Homebuyer Initiative work?
The Decatur Homebuyer Initiative (DHI) program is a collaborative effort involving several key partners to support first-time homebuyers and rejuvenate the community. The City of Decatur spearheads this initiative by investing in the rehabilitation of abandoned homes, ensuring they are updated to high standards and made available at affordable prices. The Central Illinois Land Bank Authority (CILBA) manages these renovations, overseeing the remodeling process to quality expectations.
To qualify for the City’s down payment assistance program, first-time buyers must complete the Community Investment Corporation of Decatur (CICD) homebuyer education workshops and obtain a certificate, which confirms their readiness for homeownership. Additionally, local banks support the initiative by sponsoring credit pulls, offering credit-building classes, and financing home rehab projects. Through this collaborative effort, DHI program ensures that renovated homes are affordable and accessible, while also providing buyers with the necessary knowledge and financial support to purchase and maintain their homes successfully.
How does the CICD help homebuyers in Decatur?
The Community Investment Corporation of Decatur (CICD) is the only HUD-certified housing counseling agency in Decatur. We specialize in guiding individuals through the homebuying process. Our primary service is the Homebuyer Check-Up, sponsored by Land of Lincoln Credit Union. This 30-minute session includes a free soft credit pull, advice on mortgage loan approvals, identification of suitable loans, and an overview of homeownership’s pros and cons. This session is designed to help you understand your current position and plan your next steps toward homeownership.
Following the Check-Up, we offer comprehensive Homebuyer Workshops. These full-day classes are open to anyone interested in buying a home, including those who need further education or landlords seeking more knowledge. Participants receive a certificate upon completion. For those who need additional assistance after the workshop, we provide personalized follow-up to help them become mortgage ready.
Homebuying Help from Our Partners
City of Decatur
The City of Decatur can help homebuyers with down payment and/or closing cost assistance. We’ve partnered with local financial institutions to provide resources to aspiring City of Decatur homeowners. This program offers low/moderate income homebuyers a deferred forgivable loan while ensuring the property acquired is safe, sanitary, and affordable. Here are the key details:
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Income limits: Assistance is available for households earning at or below 80% of the HUD area or median income.
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Assistance Amount: Up to $14,999 in a 0% interest, five-year deferred forgivable loan.
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Asset Limits: Applicants’ assets must not exceed $50,000 (excluding IRAs, 401K, or other retirement accounts). Retirement accounts cannot exceed $75,000.
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Property Requirements: The home must be a single-family detached unit within Decatur’s city limits, with a purchase price between $25,000 and $117,800. Mobile homes are excluded.
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First Mortgage Requirement: Applicants must qualify for a first mortgage from a participating financial institution.
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Homebuyer Counseling: A certificate from CICD is required.
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Down Payment: Applicant must contribute a minimum of 2% of the purchase price from their own funds or demonstrate at least $1,000 for down payment, insurance, and other costs.
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Transaction Requirements: The purchase must be an “arm’s length” transaction, with no familial relationship between the buyer and seller. Statements confirming no relationship will be required.
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Usage and Debt Limits: The home must be used as a principal residence for at least five years. Maximum housing debt should not exceed 30% of income, and total debts should not exceed 42%.
This program is designed to assist low-to-moderate income families in achieving homeownership while ensuring that they are financially prepared.
- THE DECATUR HOMEBUYER INITIATIVE IS POWERED BY -
