Homebuyer Programs

What you need to know about buying a home in Rock Island

 “And finally, we are thankful and happy that GROWTH has given us the opportunity to live in the City of Rock Island…It’s a great city to live in, a good place to raise a family, and a good land to own your first home.  Overall, my wife and I are thankful and happy to know that we can call it ‘our house.’” Carlos Jiminez

Who?

Persons wishing to buy a home in Rock Island.

What?

• Assistance with down payment
• Below market rate mortgage
• Assistance with closing costs
• Rehabilitation purchases

Rock Island Economic Growth Corporation (GROWTH) is a leader in Community Development Lending, which promotes economic diversity.

Community Development Lending utilizes mortgage loan products for those not served well by traditional methods. In addition, homebuyers can seek a lower mortgage rate than market rate. Money for down payment, closing costs, and rehabilitation may be included.

The purchase of a home can be a complex and bewildering process. A variety of homebuyer education and credit counseling sessions are offered by GROWTH. The goal of GROWTH is to assist each homebuyer through a pleasant homebuying experience.

When?

Funds become available annually and are allocated on a first-come, first-serve basis.

Where?

The home purchase opportunities are for homes located anywhere in the City of Rock Island.

For homes located in targeted Rock Island neighborhoods, additional resources may be available.

How?

Review this homebuyers' application. Since there are numerous opportunities available, it is difficult to know which funding source will work best for your needs. Upon completion of the application, the homebuying staff will design an action plan specifically for you. Please note: Due to the large number of inquiries for this program, an incomplete application will not be considered for processing. There is a credit report fee of $20 per person (or married couple).

Return all requested information as noted on the checklist attached with the credit report fee to: Rock Island Economic Growth Corporation, 120 16 1/2 Street, Rock Island, IL 61201. Office hours are Monday through Friday from 8:30 a.m. to 5 p.m.

Once GROWTH has received your complete application, an action plan will be mailed to the home address listed on your application. The action plan will indicate the next steps for you to take in order to participate in the programs offered by our office.

Should you have any questions, please do not hesitate to call us at 309.788.6311 or email info@liveri.com.

Meet some satisfied homebuyers

The best part about using these programs is that they actually change lives.”  Stacey Kelley

Many people questioned my decision to look at buying a home, but for me, it was something I had to do.  Then I found Kristi Ramirez and the Rock Island Economic Growth Corporation.  They made it possible and gave me the information I needed to ease my fears.  Owning a home is not overwhelming like I had believed – it’s rewarding." Angela Neimann

“Self-respect, self-pride, self-accomplishment, self-worth, self-independence,” is what owning a home means toNancy Meye.

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The Homebuyer Program Rules

• Prospective homebuyer submits all required information and completes Rock Island Economic Growth Corporation forms.
• Program Administrator assesses initial eligibility, pulls credit report, and prepares homeownership action plan to be forwarded to participant.
• Prospective homebuyer attends homebuyers' workshop.
• Prospective homebuyer completes action plan.
• Prospective homebuyer is referred for pre-approval to a bank.
• Prospective homebuyer receives commitment letter from bank, subject to appraisal of property, title search, and prospective homebuyer making no adverse financial changes or applying for addition credit.
• Typical loan approval is given within 30 days.
• Prospective homebuyer shops for a home.
• Prospective homebuyer finds property and signs sales contract.
• Prospective homebuyer calls Rock Island Economic Growth Corporation to inform them that home has been found.
• Bank orders appraisal and title search.
• Prospective homebuyer receives final commitment from lender.
• Prospective homebuyer closes on home.
• Post-purchase contracts.

• Please complete and return your application with all the documentation requested. If the file is not complete, it cannot be processed.
• Please do not begin looking for homes until you are pre-approved by one of our participating banks.
• If you make an offer on a home prior to pre-approval, you will be dropped from this program.
• There needs to be at least 60 days between when you make an offer on a home and when you close on the home. Failure to do this will drop you from the program.
• If the notice to seller is not signed by both you and the seller, your file will be suspended until the notice is completed.
• Once you have entered this program, do not change your financial situation unless it is to increase savings or pay down existing debt without depleting your savings. After pre-approval at a participating bank, follow this same rule. Incurring new debt or reducing assets may cause your pre-approved amount to be reduced or even be disqualified from purchasing a home.
• Please remember that your relationship with Rock Island Economic Growth Corporation does not end with your closing. If you ever have any financial difficulties, which could prevent you from making your mortgage payment on time, please call us immediately! Don't wait until it's too late; call when there's still a chance to help you keep your home.

Application

• Disclosure Statement
• Pre-application worksheet
• Required Information
• Demographic Profile

All documents are needed to submit a complete application. Please make sure you've read the program rules before submitting your application. Click here for program rules.

Submit your completed application to Rock Island Economic Growth Corporation, 120 16 1/2 Street, Rock Island, IL 61201. If you have questions please call 309.788.6311 or email info@liveri.com. Office hours are Monday through Friday from 8:30 a.m. to 5 p.m.

The above documents are provided in PDF format, and require Adobe Acrobat Reader to open. To obtain Adobe Acrobat for free click here.

Special Loan Products

Outlined here are the loan products that are available through Rock Island Economic Growth Corporation's homebuyer program.

IHDA HOME Program - Purchase & Rehabilitation Assistance

• 0% Illinois Housing Development Authority (IHDA) deferred forgivable loans that are forgivable after 5 or 10 years based on the amount of assistance provided.
• Buyers are eligible for up to $8,000 in down payment assistance and up to $25,000 in improvements.
• Income limits up to 80% of the area median income.

• 1 person $33,650
• 2 person $38,500
• 3 person $43,300
• 4 person $48,100
• 5 person $51,950
• 6 person $55,800
• 7 person $59,650
• 8 person $63,500

IHDA Housing Trust Fund - Purchase & Rehabilitation Assistance

• IHDA loans are $20,000 at 0%, payable on resale of home, for down payment, closing cost assistance and improvements to the property.
• Income limits up to 80% of the area median income.

• 1 person $33,650
• 2 person $38,500
• 3 person $43,300
• 4 person $48,100
• 5 person $51,950
• 6 person $55,800
• 7 person $59,650
• 8 person $63,500

IHDA H.E.L.P. Program - Mortgage Revenue Bond Program

• For single family homes only.
• Program offers qualified first time homebuyers 4.25% of the purchase price of a house as a "gift" for 3% down payment and 1.25% origination fee.
• Income limits as set by IHDA.

Maximum purchase price limits on new construction:

Maximum household income - existing home:

Community Gold Purchase Program - Purchase & Rehabilitation Assistance

• Enhanced underwriting guidelines through Freddie Mac.
• Low down payments that require as little as $1,000 from the borrower's personal cash.
• Versatile financing tool designed to accommodate a variety of lending needs, including purchase, refinance and purchase-rehabilitation.
• No income limits.

Section 8 Housing Choice Voucher Homeownership Program

• GROWTH and the Rock Island Housing Authority have partnered with Freddie Mac to pave the way for new roads to homeownership in Rock Island.
• Participants are able to utilize the housing choice voucher toward the monthly payments of a mortgage.

Live and Work in Rock Island

• a grant for 5% of the purchase price minus $500 for down payment
• up to $2,000 in additional funds to pay for closing costs and the first year's homeowner's insurance

• 1 person $50,520
• 2 person $57,720
• 3 person $64,920
• 4 person $72,120
• 5 person $77,880
• 6 person $83,640
• 7 person $89,400
• 8 person $92,760

Eligible Employer Companies

• AD Huesing Corporation - Allied Home Mortgage - American Bank & Trust Company - AT&T - Augustana College - Band-All Strapping & Tool Repair - Bi-State Regional Commission - Bituminous Insurance Cos. - Casino Rock Island - Cleaveland Insurance Group - Crawford Company - Davenport Dryer - Deere & Company - Dispatch / Rock Island Argus - Dohrn Transfer Company - First Midwest Bank - Friendship Manor - Gas & Electric Credit Union - Gere-Dismer Architects - Glass Service Center - Group O - Hill & Valley - IH Mississippi Valley Credit Union - Illinois Quad City Chamber of Commerce - JP Morgan Chase - JTM Concepts - KJWW, P.C. - KWQC-TV6 - Katz, Huntoon & Fiewiger, P.C. - Lane & Waterman, P.C. - Langman Construction - LRC Developers - McGladrey & Pullen - McLaughlin Body Company - Mel Foster Company - Meridian Title Co. - MetroLINK - MidAmerican Energy Co. - Midwest Graphics Management - Miller Container Corporation - Minuteman Press - Missman, Stanley, & Associates - Modern Woodmen of America - National City Bank - Norcross Safety Products - Pappas & Schnell, P.C. - Performance Food Group-TPC - The Phil Scott Co. - Plaza Office Building - Quad City Bank & Trust - Quad City Times - R & D Concrete Products - R.J. Lee & Associates - Raufeisen Development Co. - RE/MAX River Cities - Riverstone Group, Inc. - Robert Young Center for Mental Health - City of Rock Island - Rock Island - Milan School District #41 - Roy Harper Realty - Royal Neighbors of America - Ruhl & Ruhl Realtors - Russell Construction - Safety Building - Seaberg Industries - Sheraton Four Points Hotel - Rock Island - Shive-Hattery Engineers & Architects - Snyder, Park & Nelson, P.C. - Star Cres International - THE National Bank - Trinity Regional Health System - U.S. Bank - The Valley Group - Wells Fargo Bank - WHBF TV4 -  Zimmerman Cars. (Current employers as of 3/07. If your employer is not listed, please inquire for more details.)

Homebuying Counseling

Tracking Income & Expense

Homebuyer Workshops

Because the homebuyer workshops are so popular, space is limited to current homebuyer program participants.

Homebuyer workshops cover these topics:

• preparing for homeownership
• applying for a loan
• working with a realtor
• home inspections
• the closing process
• construction
• life as a homeowner

Guest speakers include individuals from financial institutions, real estate offices, and closing agents.

All participants in the Rock Island Economic Growth Corporation homebuyer program are required to attend homebuyer workshops.

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For more information contact

• Rock Island Economic Growth Corporation
• 120 16 1/2 Street
• Rock Island, IL 61201
• 309.788.6311
• info@liveri.com