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HOMEbuyer Program

Madison County, Illinois

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Assistance

$15,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$329,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is HOMEbuyer Program?

HOMEbuyer Program is a forgivable loan for homebuyers in Madison County, Illinois.

  • The Madison County HOMEbuyer Program, administered by Madison County Community Development (MCCD), provides up to $5,000 of down payment and closing-cost assistance to low- and moderate-income first-time homebuyers purchasing single-family housing in Madison County, IL (excluding the City of Alton). Funded through HUD HOME, the assistance is structured as a 0%-interest 5-year forgivable second-mortgage loan. The program's primary objective is to increase homeownership rates - particularly among lower-income and minority households - and to revitalize and stabilize Madison County communities.
  • Up to $5,000 in down payment and closing-cost assistance, structured as a 0%-interest 5-year forgivable second-mortgage loan, for low- to moderate-income first-time homebuyers purchasing single-family housing within Madison County, IL (excluding the City of Alton, which administers its own program). Forgiveness pro-rated over the 5-year term.
  • Funding comes from Federal HOME and Local Government.

How much assistance does it provide?

HOMEbuyer Program offers up to $15,000 in assistance.

  • Buyer contribution: No published Madison-County-specific minimum buyer contribution; lender first-mortgage product rules apply.
  • 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 Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by 5-year forgiveness period. If property is sold, transferred, refinanced (cash-out), or no longer the borrower's primary residence within 5 years, the 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 Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer = no homeownership in prior 3 years; displaced-by-life-event (death/divorce/etc.) exception applies.
  • The home is occupied as a primary residence
  • On credit: 620 (program customary threshold; first-mortgage product credit-score minimums apply)
  • A completed homebuyer education course, through HUD-approved housing counseling agency; pre-purchase homebuyer education required.
  • Residency: Property must be located within Madison County, IL, outside the City of Alton (which administers its own program), and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules
  • Applicant must be a low- to moderate-income first-time homebuyer (not owned a home in past 3 years, or owned with someone else and displaced by life-changing event such as death/divorce). Household income at or below 80% HUD AMI for the St. Louis HMFA, Madison County portion (approximate range $47,550 1-person to $89,650 8-person under 2025 HUD limits). Property must be a single-family home in Madison County, IL (outside the City of Alton, which has its own program), and serve as the buyer's primary residence. HUD-approved homebuyer counseling required. HOME funds may be used for down payment and closing costs (appraisal, credit report, inspection fees, counseling fees, settlement/title fees, underwriting/processing). 620 minimum FICO is the program's customary first-mortgage threshold.

The program excludes

  • Manufactured homes
  • Purchases above the $329,000 price cap
  • 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 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 St. Louis, MO-IL HMFA (Madison County portion). 2025 approximate range: $47,550 (1-person) to $89,650 (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 Program caps the purchase price at $329,000.

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

Where does it apply?

HOMEbuyer Program serves buyers purchasing in Madison County, Illinois.

How do you apply?

Applications for HOMEbuyer 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 housing counseling agency; pre-purchase homebuyer education required..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application processed only through participating program lenders; awarded first-come, first-served subject to fund 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.

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