hey prescott.
See what you qualify for

Homebuyer Assistance Program

City of Rockford Community & Economic Development Department, Neighborhood Development Division · Rockford, Illinois

Last verified
See what you qualify forOfficial program site →
Assistance

$14,999

The maximum the program publishes — not an offer

Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$131,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is Homebuyer Assistance Program?

Homebuyer Assistance Program is a forgivable loan for homebuyers in Rockford, Illinois, administered by City of Rockford Community & Economic Development Department, Neighborhood Development Division.

  • The City of Rockford's Homebuyer Assistance Program, administered by the Neighborhood Development Division, provides up to $14,999 in assistance toward the purchase of a home for income-eligible buyers. Assistance is a zero-interest, 5-year forgivable mortgage loan, with the amount based on the applicant's income, debt, and anticipated mortgage. The program is funded by HUD through the HOME Investment Partnerships Program, so availability depends on current funding. Buyers must occupy the home as their primary residence through the end of the forgivable loan term.
  • Up to $14,999 in homebuyer assistance.
  • Zero-interest forgivable loan (forgiven over 5 years).
  • No repayment if owner-occupancy is maintained through the term.
  • Stackable with participating-lender first mortgages and possible FHLB Chicago assistance.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD HOME Investment Partnerships Program (and CDBG housing activities).

How much assistance does it provide?

Homebuyer Assistance Program offers up to $14,999 in assistance.

  • Buyer contribution: Applicant must contribute at minimum 1 percent of the sales price toward the purchase.
  • The program can be combined with Participating-lender first mortgages; some buyers may qualify for additional Federal Home Loan Bank of Chicago assistance.
  • Amounts are the program's published maximums, not an offer — City of Rockford Community & Economic Development Department, Neighborhood Development Division determines any individual award.

Do you have to pay it back?

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

  • Repayment is triggered by Homebuyer must occupy the home as primary residence through the end of the forgivable loan; recapture provisions apply if owner-occupancy/affordability is not met during the affordability period.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homebuyer Assistance 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 — the program sets its own definition
  • The home is occupied as a primary residence
  • A completed homebuyer education course, through Pre-purchase housing counseling class from a HUD-certified housing counseling agency.
  • Eligibility (per Sept 2022 brochure): qualify for first mortgage financing through a participating lender; 30 percent housing ratio and back-end DTI at or below 41 percent after assistance; meet annual income limits (income counts all household members 18-plus); no unpaid judgments/liens; no bankruptcy discharged within 2 years; no foreclosure within 3 years; meet criminal-history criteria; complete HUD-certified pre-purchase counseling; live in the property for the loan term; contribute at least 1 percent of sales price; liquid assets not exceeding $25,000 (excluding IDAs, retirement, life-insurance cash value); retain at least one month of housing-expense reserves. GAP: the official page showed application closed at last update and links a Sept 2022 brochure; the 2025-2029 Consolidated Plan / 2025 Annual Action Plan confirms continued HOME funding (6 HOME-funded homebuyers planned for FY2025), so the program remains funded but opens subject to fund availability. GAP: current-year HUD income/price limits not republished. GAP: current minimum credit score not published. GAP: explicit first-time/3-year prior-ownership rule not stated in the brochure. GAP: lien position and prepayment penalty not explicitly stated. GAP: manufactured home eligibility not addressed.

The program excludes

  • New construction
  • Purchases above the $131,000 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 Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below roughly 80 percent of area median income, by household size. Per the Sept 2022 brochure: 1 $45,100; 2 $51,550; 3 $58,000; 4 $64,400; 5 $69,600; 6 $74,750; 7 $79,900; 8 $85,050. Limits subject to change by HUD.
  • 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 Assistance Program caps the purchase price at $131,000.

  • Eligible property types include Single Family.
  • New construction is not eligible.

Where does it apply?

Homebuyer Assistance Program is a federal program, so it is not limited to Illinois.

How do you apply?

Applications for Homebuyer Assistance Program go through City of Rockford Community & Economic Development Department, Neighborhood Development Division, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Pre-purchase housing counseling class from a HUD-certified housing counseling agency..

  2. Contact City of Rockford Community & Economic Development Department, Neighborhood Development Division to reserve funds

    Funds are reserved with the provider 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.

Free course from Hey Prescott

Homebuyer Assistance Program, explained

A short, free course on Homebuyer 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 July 2026. About ten minutes.

5 modules · About 10 minutes

Read the course

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs