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Homeownership Program

Alton, Illinois

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Assistance

$5,000

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$281,250

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Homeownership Program?

Homeownership Program is a forgivable loan for homebuyers in Alton, Illinois.

  • The City of Alton Homeownership Program, administered by the Department of Development & Housing, was initiated in 1997 to boost homeownership rates and expand affordable housing within Alton. It provides 5-year forgivable down payment and closing-cost assistance loans to homebuyers with incomes below 80% of the area median income who purchase homes within Alton city limits. Funded through HOME and CDBG, the program has assisted over 900 households with more than $3 million in expenditures since inception.
  • Five-year forgivable second-mortgage loan for down payment and eligible closing-cost assistance on a home purchased within the City of Alton. Maximum assistance $5,000 for income-qualified buyers ($3,000 for low-income / $5,000 for very-low-income tier per historical guidelines). 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?

Homeownership Program offers up to $5,000 in assistance.

  • Buyer contribution: Minimum $1,000 of buyer's own funds (earnest money or cash at closing).
  • 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?

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

  • Repayment is triggered by Loan is forgiven over 5 years of continued owner-occupancy. If sold, transferred, refinanced (cash-out), or no longer the borrower's primary residence within the 5-year period, 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?

Homeownership 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: 620 used as program guidance; first-mortgage product credit-score minimums apply
  • A completed homebuyer education course, through HUD-approved homeownership counseling agency (counseling certificate required prior to closing).
  • Residency: Property must be located within the corporate limits of the City of Alton, IL, and serve as borrower's primary residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product rules
  • Buyer must be income-qualified at or below 80% HUD AMI for the Alton/St. Louis MSA (2025 limits range $62,400 1-person to $117,650 8-person). Buyer must contribute minimum $1,000 of own funds (earnest money or cash at closing). First mortgage must be fixed-rate within 1% of market rate. Buyer must have clean credit history for prior 12 months. Completion of HUD-approved homebuyer counseling required prior to closing. Property must be located within the City of Alton city limits and be the buyer's primary residence. Five-year affordability/forgiveness period (lien recorded). Note: Alton-specific min FICO not formally published; the seed-list 620 is used as guidance. The seed-list low end ($36,150) reflects a prior 30%-AMI very-low-income tier; current published 80%-AMI table starts at $62,400 (1-person). Seed max purchase price $281,250 per current internal program limit.

The program excludes

  • Manufactured homes
  • Purchases above the $281,250 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?

Homeownership 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 Alton/St. Louis HUD income area. 2025 limits: $62,400 (1-person), $71,300 (2), $80,200 (3), $89,100 (4), $96,250 (5), $103,400 (6), $110,500 (7), $117,650 (8).
  • 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?

Homeownership Program caps the purchase price at $281,250.

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

Where does it apply?

Homeownership Program serves buyers purchasing in Alton, Illinois.

How do you apply?

Applications for Homeownership 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 homeownership counseling agency (counseling certificate required prior to closing)..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Lender submits application package to City of Alton Department of Development & Housing; 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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