MATTOON - First Mid Bank & Trust (First Mid) continues to change lives for low-income and first-time homebuyers throughout the bank’s Illinois communities. Using grant funds from the Downpayment Plus® (DPP) Program through the Federal Home Loan Bank of Chicago, First Mid has helped those who never thought they would become homeowners move into the house of their dreams. In 2024, First Mid awarded 97 grants for a total of $970,000, helping deserving families complete their homebuying journey.
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Kayla Aaron, Regional Retail Loan Manager at First Mid, said in today’s current housing market, finding a home at the right price and making a down payment can seem impossible. However, DPP grants can give people the vital assistance they need. Those participating in the program must contribute $1,000 of their own funds before First Mid can get the homebuyer up to $10,000 in grant money to put toward a down payment. There is also an application process with income requirements to qualify for DPP. The grants are forgiven monthly over a five-year retention period, and the borrower must close on mortgage financing with First Mid. This year’s funds were released on February 18, 2025.
“Last year, we had a young family come in who just had a baby with another on the way,” Aaron said. “She had lost her job, and his income was right on the line. It was a make-or-break deal for them because they really had no other funds or other options. We were able to get them approved for DPP and moved them from a trailer to a house during a pivotal time in their lives. It was quite emotional to help them achieve their dream of homeownership, especially since these last few years in banking have been challenging. It’s extremely rewarding to see our customers succeed and know we made a difference in their lives. Participating in programs like DPP and continuing to help our communities grow and thrive is what makes First Mid special.”
Aaron said once the funds get released, applications for DPP start flooding in and really stay strong until the end of October. Many customers wait for their tax returns to build toward that $1,000 before being able to receive the grant funds.
“When something like DPP grant money becomes available, it allows people who thought they could never buy a home do so,” Aaron said. “It’s very heartwarming to see people have their dreams come true. The days of being able to put 20% down for a home are over for most people, especially with the cost of everything continuing to increase. DPP truly helps people, and there are many who wouldn’t be homeowners without this program.”
Learn more about all of First Mid’s low down payment mortgage options at www.firstmid.com/mortgages/low-down-payment-mortgage-options/.
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