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.

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

Homebuyer Down Payment/Closing Cost Assistance Program is forgiven after 5 years, so a homebuyer 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.

Homebuyer Down Payment/Closing Cost Assistance Program is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No published Moline-specific minimum; first-mortgage product credit-score minimums apply. A homebuyer education course is required, through HUD-approved counseling agency; 8-hour Homebuyer Education class required prior to receiving assistance. Residency requirement: 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.

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.

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.

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

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. Funds are reserved through Application submitted via Jotform / Community Development; awarded first-come, first-served subject to availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.