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Homebuyer Down Payment/Closing Cost Assistance Program

Moline, Illinois

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Assistance

$7,100

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is Homebuyer Down Payment/Closing Cost Assistance Program?

Homebuyer Down Payment/Closing Cost Assistance Program is a forgivable loan for homebuyers in Moline, Illinois.

  • The City of Moline CDBG Down Payment/Closing Cost Assistance Program, administered by the Community & Economic Development Department, provides forgivable second-mortgage loans up to $7,100 to low- and moderate-income homebuyers earning up to 80% of HUD AMI who purchase homes in Moline. Funded through CDBG, the program covers up to 50% of the required down payment plus reasonable closing costs and is forgiven on a pro-rata basis over a 5-year affordability period.
  • Forgivable second-mortgage loan up to $7,100 for down payment and/or closing-cost assistance for households earning up to 80% of HUD Area Median Income. CDBG-funded.
  • 5-year affordability period with pro-rated forgiveness (the longer the homeowner stays, the more is forgiven). Funds awarded first-come, first-served until exhausted.
  • Funding comes from Federal CDBG and Local Government.

How much assistance does it provide?

Homebuyer Down Payment/Closing Cost Assistance Program offers up to $7,100 in assistance.

  • Buyer contribution: Minimum $1,000 buyer contribution toward down payment and/or closing costs.
  • 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?

Homebuyer Down Payment/Closing Cost Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by 5-year affordability lien. Pro-rata forgiveness over 5 years and if homeowner sells, transfers, refinances (cash-out), or ceases to occupy as primary residence before 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?

Homebuyer Down Payment/Closing Cost Assistance Program is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: No published Moline-specific minimum; first-mortgage product credit-score minimums apply
  • A completed homebuyer education course, through HUD-approved counseling agency; 8-hour Homebuyer Education class required prior to receiving assistance.
  • Residency: Property must be located within the corporate limits of the City of Moline, IL, and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules
  • Household income at or below 80% HUD AMI for the Davenport-Moline-Rock Island MSA - approximately $50,150 (1-person) to $94,550 (8-person) under 2025 HUD limits. Buyer must be able to obtain a fixed-rate FHA, VA, or Conventional first mortgage. Front-end (housing) ratio must be less than 31% and back-end (total debt) ratio less than 43%. Buyer must contribute at least $1,000 toward down payment and/or closing costs. Property must be purchased fee-simple, located within City of Moline, and be the buyer's primary residence. Program may cover up to 50% of the required down payment plus reasonable closing costs. 8-hour HUD-approved Homebuyer Education class required prior to receiving assistance. Homeowner must carry homeowner's insurance and list City of Moline as additional insured. 5-year affordability lien recorded. Funds first-come, first-served until exhausted.

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Homebuyer Down Payment/Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% HUD AMI for the Davenport-Moline-Rock Island, IA-IL MSA. 2025 approximate range: $50,150 (1-person) to $94,550 (8-person).
  • 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?

Homebuyer Down Payment/Closing Cost Assistance Program caps the purchase price as follows: No published Moline-specific maximum purchase price; subject to first-mortgage product and CDBG 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?

Homebuyer Down Payment/Closing Cost Assistance Program serves buyers purchasing in Moline, Illinois.

How do you apply?

Applications for Homebuyer Down Payment/Closing Cost Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved counseling agency; 8-hour Homebuyer Education class required prior to receiving assistance..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application submitted via Jotform / Community Development; awarded first-come, first-served subject to availability., and are subject to availability.

  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.

Learn this program

Short reads on how it works, in plain language. Free, no sign-up needed to read.

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Homebuyer Down Payment/Closing Cost Assistance Program, explained

A short, free course on Homebuyer Down Payment/Closing Cost Assistance Program: what it is, who it is for, how it is forgiven, where it applies and how to apply. Based on program data from June 2026. About ten minutes.

5 modules · About 10 minutes

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