CDBG Down Payment/Closing Cost Assistance Program

CDBG Down Payment/Closing Cost Assistance Program
About the Program

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 prorated) 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 must not exceed the current HUD Income Guidelines.
- An applicant must have the ability to obtain an 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 homeownership assistance to low- and moderate-income 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:
- A program applicant shall use a realtor or attorney to guide them through the homebuying process;
- 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 toward 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 homeowner'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 all the funds are utilized.
Questions? Please email housing@moline.il.us or call 309-524-2044.
Please be prepared to upload the following items with this application:

(If you are unable to upload these documents, please bring them with you to your in-person intake meeting.)
- Full list of all household members with their birthdates
- Homeowner insurance declaration page
- Proof of total household income (for everyone 18 and over)
  - Previous year's tax returns with all W-2s
  - Check stubs for the last 60 days within the last 90 days
  - Pension benefit statement
  - Social security benefit statement
  - SSI benefit statement
  - Alimony
  - Bank statements (within the last 60 days)
  - Other (i.e. babysitting, Avon, etc...)
- Proof of identification/citizenship (for everyone 18 and older)
  - Social Security Cards
  - Government-issued photo IDs

CDBG Down Payment/Closing Cost Assistance Program Application
The Applicant understands that this pre-qualification is a screening document to ensure that potential buyers meet the minimum requirements. This pre-qualification does not guarantee that the Applicant has or will qualify for financial assistance.
Applicant Name*

First NameLast Name
Email
example@example.com
Applicant Signature*

Clear
Co-Applicant Name (if applicable)

First NameLast Name
Email
example@example.com
Co-Applicant Signature (if applicable)

Clear
Today's Date*

MonthDayYear
Date
Applicant Information
Applicant Name*

First NameMiddle NameLast Name
Address*

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
Social Security Number*
Daytime Phone Number*
Please enter a valid phone number.
Work Phone Number
Please enter a valid phone number.
Employer
Date of Employment
Employer's Address

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
Gross Income $ (please specify if annual, monthly, weekly, or hourly)*

Co-Applicant Information

Please continue to the next page if you do not have a co-applicant
Co-Applicant's Name

First NameMiddle NameLast Name
Co-Applicant's Address

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
Co-Applicant's Social Security Number
Co-Applicant's Daytime Phone
Please enter a valid phone number.
Co-Applicant's Work Phone Number
Please enter a valid phone number.
Co-Applicant's Employer
Co-Applicant's Employer's Address

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
Co-Applicant's Date of Employment
Co-Applicant's Gross Income (please specify annual, monthly, weekly, or hourly)

Zero Income Certification

Complete only if you are reporting zero income
Applicant Name

First NameLast Name
Social Security Number
Phone Number
Please enter a valid phone number.
Address

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
I hereby certify that I do not receive income from any other the following sources:
- Wages, salaries, tips, etc.
- Taxable interest
- Dividends
- Taxable refunds, credits or offsets of state and local income tax. There are some exceptions - refer to Form 1040 for instructions.
- Alimony (or separate maintenance payments) received
- Business income (or loss)
- Capital gain (or loss). There are some exceptions - refer to Form 1040 instructions.
- Other gains (or losses) (i.e. assets used in a trade or business that were exchanged or sold)
- Taxable amount of individual retirement account (IRA) distributions. (Includes simplified employee pension [SEP] and savings incentive.)
- Rental real estate, royalties, partnerships, S corporations, trusts, etc.
- Farm income (or loss)
- Unemployment compensation benefits
- Taxable amount of Social Security benefits
- Other income, including prizes and awards; gambling, lottery or raffle winnings; jury duty fees; permanent fund dividends; reimbursements for amounts deducted in previous years; income from the rental of property if not in the business or renting such property; and income from an activity not engaged in for profit.
And, that I have no income of any kind whatsoever at this point in time and do not anticipate income from any source within the next 12 months.
Signature

Clear
Date

MonthDayYear
Date
PENALTY FOR FALSE OR FRAUDULANT STATEMENT: U.S. title 18, Sec. 1001 provides: "Whoever in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or documents knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years or both."

Household Information

Complete for each person who will be living in the household other than the applicant

	Name	Relationship	Sex	Age	Employment Status
1
2
3
4
5
6
7
8

Household Income

Income received in the last 12 months*

	Applicant	Co-Applicant	Other Adult
Total Earnings
Social Security
AFC
Child Support
Pension
Interest/Dividends
Other (please describe)
TOTAL INCOME

Assets - list all checking/savings accounts, CDs, investments, etc.

	Asset (type)	Present Value	Annual Income
1
2
3
4
5

Description of Other Income
Monthly Expenses

	Average Monthly Payment	Remaining Balance
Rent (do not include utilities)
Auto loan(s)
Other consumer loans
Credit card(s)
Medical bills
Dental bills
Hospital bills
Child care expenses
Student loans
Alimony
Car insurance
Health insurance
Other
TOTAL

Home Purchase Information

Fill out only if a property has already been identified for purchase
Address

Street Address

Street Address Line 2

CityState / Province

Postal / Zip Code
Purchase Price $
Number of Bedrooms
Year Built
Earnest Money $
1st Mortgage Amount $
Buyer's Down Payment $
Realtor Name

First NameLast Name
Realtor's Phone Number
Please enter a valid phone number.
Projected Closing Date
Lender
Loan Originator
Lender's Phone Number
Please enter a valid phone number.

Required Documentation

If you are unable to upload these documents, please bring them with you to your in-person intake meeting.
Proof of Identification/Citizenship (for everyone 18 and over)
Government Photo IDs

Cancelof
Social Security Cards

Cancelof
Proof of Total Houshold Income (for everyone 18 and over)
Previous Year's Tax Returns with All W-2s

Cancelof
Paycheck Stubs (last 60 days)

Cancelof
Pensions

Cancelof
Social Security Benefit Statement

Cancelof
Alimony

Cancelof
Checking and Savings Bank Statements (within the last 60 days)

Cancelof
Documentation of All Other Income (Babysitting, Door Dash, Avon, etc...)

Cancelof
Lender Pre-Approval Letter Stating How Much You Have Been Approved for a Loan and Terms of Pre-Approval

Cancelof
Credit Report

Cancelof

Authority for Release of Information Form
Program Administrator (Sponsor) Name: CDBG Down Payment/Closing Cost Assistance Program

Program Administrator (Sponsor) Address: 619 16th Street, Moline, Illinois 61265

I hereby authorize the above Sponsor to verify my bank accounts, employment records, outstanding debts, including any present or previous mortgages, and to make other inquiries pertaining to my qualification for the CDBG Down Payment/Closing Cost Assistance Program administered by the City of Moline. Sponsor may make copies of this letter for distribution to any party with which I have a financial or credit relationships and such party may rely on such copy as if the same were an original.

Privacy Act Notice: All information collected by Sponsor or its assignees shall be used in determining whether I qualify as a prospective recipient of a forgivable loan under the CDBG Down Payment/Closing Cost Assistance Program. Such information will not be disclosed outside Sponsor except as required and permitted by law. I understand that I do not have to provide any such information, but that failure to do so may cause my application for approval as a recipient or borrower to be delayed or rejected.
Applicant Name*

First NameLast Name
Applicant Signature*

Clear
Co-Applicant Name (if applicable)

First NameLast Name
Co-Applicant Signature (if applicable)

Clear
Today's Date*

MonthDayYear
Date

Signatures

U.S.C. Title 18, Section 1001 provides: "Whoever in any matter within the jurisdiction of any department or agency in the United States, knowingly and willfully falsifies or makes any false, fictitious or fraudulent statement of entry, shall be fined not more than $10,000, or imprisoned not more than five years, or both. In addition, any fraudulent, fictitious or false statement on this application will result in the calling in or any note, deferred grant or other financial help in full."
I certify that all the foregoing information in this application is true and correct.
Applicant Name*

First NameLast Name
Email
example@example.com
Applicant Signature*

Clear
Co-Applicant Name (if applicable)

First NameLast Name
Email
example@example.com
Co-Applicant Signature (if applicable)

Clear
Today's Date*

MonthDayYear
Date

Should be Empty:

CDBG Down Payment/Closing Cost Assistance Program

CDBG Down Payment/Closing Cost Assistance Program Application

Applicant Information

Co-Applicant Information

Zero Income Certification

Household Information

Household Income

Monthly Expenses

Home Purchase Information

Required Documentation

City of Moline Applicant Demographic Profile

Authority for Release of Information Form

Signatures