First Time Homebuyer Program

What is First Time Homebuyer Program?

First Time Homebuyer Program is a forgivable loan for homebuyers in Collinsville, Illinois.

• The City of Collinsville First Time Homebuyer Program, administered by the Community Development Department, provides income-based down payment assistance of up to $5,000 to first-time homebuyers purchasing a primary residence within the City of Collinsville corporate limits. Funded through CDBG/HOME, the assistance is structured as a 5-year forgivable second-mortgage loan; required buyer contribution is set on a graduated scale based on Median Area Income (MAI) tier.
• Income-based down payment assistance up to $5,000 for first-time homebuyers purchasing a home within City of Collinsville corporate limits. Funded through CDBG/HOME and structured as a 5-year forgivable second-mortgage loan.
• required buyer contribution is determined by Median Area Income (MAI) tier. Awarded first-come, first-served subject to fund availability.
• Funding comes from Federal HOME, Federal CDBG, and Local Government.

How much assistance does it provide?

First Time Homebuyer Program offers up to $5,000 in assistance.

• Buyer contribution: Buyer contribution determined by MAI tier (graduated by income); contact Community Development for current tier table.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

First Time Homebuyer Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Loan forgiven over 5 years of continuous owner-occupancy. If sold, transferred, refinanced (cash-out), or no longer primary residence within 5 years, unforgiven balance becomes due.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Time Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income within program income tiers (approximately 30%-80% HUD AMI for the St. Louis HMFA, Madison County portion). 2025 approximate range: $21,700 (1-person, 30% AMI) to $109,000 (8-person, 80% AMI).
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First Time Homebuyer Program caps the purchase price as follows: No published Collinsville-specific maximum purchase price; subject to first-mortgage product limits and HOME affordability rules.

• Eligible property types include Single-family detached, Townhome, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First Time Homebuyer Program serves buyers purchasing in Collinsville, Illinois.

How do you apply?

Applications for First Time Homebuyer Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved housing counseling agency; pre-purchase homebuyer education recommended..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Buyer or lender submits application to City of Collinsville Community Development; minimum 15-day staff review; awarded first-come, first-served subject to fund availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.