Homebuyer Down Payment/Closing Cost Assistance Program (Homebuyers)

Owning a home is part of the American Dream.  CDBG funds can help support this dream by providing funds to income eligible households to purchase an existing or newly constructed home in the City of Moline.  The CDBG Down Payment/Closing Cost Assistance Program was created to provide forgivable loans to low-moderate-income homebuyers to acquire a home in the City of Moline.  A five-year lien will be placed on the property that receives assistance.  The loans are forgivable (and pro-rated) in that, as long as the recipients remain living in the homes they buy for five years, they don’t owe any reimbursement for the acquisition assistance. 

Program Eligibility

• An applicant’s total household income doesn’t exceed the current HUD Income guidelines (see 2022 Annual Income Guidelines below);
• An applicant must have the ability to obtain a FHA, VA or Conventional/Fixed Rate Mortgage loan;
• An applicant’s debt load shall not exceed the front-and back-end ratios:
  • The front-end ratio expresses housing debt to income. The front-end ratio must be below 31% to qualify.
  • The back-end ratio expresses total debt to income. The back-end ratio must be below 43% to qualify.

CDBG funds may be used to provide direct home ownership assistance to LMI households.  Each application is reviewed and approved or denied on a case by case basis.  Below are additional program requirements, including, but not limited to:

• Homes shall be purchased through a fee simple title;
• This program will provide up to 50% of the required down payment;
• This program will pay reasonable closing cost;
• The acquisition component of the program allows homebuyers at 80% Area Median Income (AMI) to receive up to $7,100 assistance with down payment and/or closing costs;
•  Homebuyers are required to contribute at least $1,000.00 towards the down payment and/or closing cost;
• Potential homebuyers are required to complete an eight hour Homebuyers education class from a HUD Approved Counseling Agency prior to receipt of financial assistance;
• Homebuyers must carry home owner’s insurance and list the City of Moline as an additional insured; 

• This program will be offered on a first come first served basis until the all the funds are utilized.

The CDBG Homebuyer Down Payment/ Closing Cost Assistance Program application may be downloaded by clicking here.  Please contact KJ Whitley, Community Development Manager, 309-524-2044, kwhitley@moline.il.us, with any questions.