STATEWIDE PROGRAMS

Homes for Iowans

Assistance Available:
The Iowa Finance Authority works with Iowa residents to encourage homeownership by offering downpayment assistance in the form of up to 5% of the purchase price or $5000, whichever is less, that is repayment when the home is sold or refinanced.

There is also a $2500 Homes for Iowans Plus grant available.

Iowans can also take advantage of Freddie Mac’s HFA Advantage downpayment assistance which consists of $2500 for residents with a 50% of area median income and $1500 for residents with a 50.01% - 80% area median income.

Qualifications:
The income limit for eligibility is $121,800. The purchase price limit is $331,000. You do not have to be a first time homebuyer.

FirstHome - Downpayment Assistance

Assistance Available:
This program offers a FirstHome Plus grant of $2500 or a loan of up to $5000 to help defray the cost of downpayment and closing. Buyers using the FirstHome or FirstHome Plus programs may be subject to a recapture tax.

Qualifications:
Have not purchased a home or used a First Time Homebuyer status in the last 3 years. This is not a requirement for military veterans with anything other than a dishonorable discharge and have not participated in a mortgage revenue program like FirstHome to purchase a home in the past. The first time homebuyer requirement is also waived if you are purchasing a home in a targeted area.

The maximum acceptable credit score is 640, and the maximum debt to income ratio is 45%. The homebuyer must occupy the property as the primary residence and move into the home within 60 days from closing.

Both Homes for Iowans Plus and FirstHome Plus are one time use programs.

CITY AND COUNTY PROGRAMS

Des Moines
Home$tart and Home$tart Plus Programs

Assistance Available:
These programs are offered through the Federal Home Loan Bank (FHLA) of Des Moines. Home$tart homebuyers can receive up to $7500 in grant funds. Home$tart Plus homebuyers can receive up to $15,000 in grant funds.

There is a 5 year deed restriction requiring homebuyers to return a pro rata share of the assistance if the home is sold within 5 years of purchase. If you sell your home for a loss, lose it to foreclosure, or sell it to another low to moderate income homebuyer the pro rata amount owed is forgiven in total.

Qualifications:
80% of the area median is the income limit. Participants in Home$tart Plus must be receive public housing. If you are a first time homebuyer, you must complete a homebuyer education course. You must occupy the property as your primary residence. Single family homes, condominiums, and manufactured homes are eligible. There are no neighborhood restrictions.

Cedar Rapids
First Time Home Buyer Program

Assistance Available:
The First Time Home Buyer Program offers eligible homebuyers $1000 - $5000 in downpayment assistance in the form of a 5 year forgivable loan. As of July 1, 2019 the funds were nearly exhausted, but the city was still accepting applications. Funds are allocated on a first come, first serve basis and applications are reviewed in the order in which they are received.

Qualifications:
You must be a first time homebuyer. You must meet the income requirements of no more than 80% of the area median and be purchasing an eligible property. Mobile homes are not eligible property. You must meet the mortgage and debt criteria. Borrowers must complete a HUD approved homebuyer education course.

Dubuque
First-Time Homebuyer Loan Program

Assistance Available:
This program offers qualified residents a $5000 long term, 0% interest loan for downpayment assistance and closing costs. If your household income is less than 30% of the area median, you may be able to receive $25,000 in assistance. The $5000 loan is repaid over a maximum period of 8 years. The $25,000 loan is deferred for 5 years and then repaid over 35 years at $60 a month.

Qualifications:
Have not owned a home in the last 3 years. There is an exception to this requirement for single parents and displaced homemakers who owned a home with a spouse while married. A HOME workshop certification is required. You must contribute a minimum of 3% of the purchase price. 2% of the contribution may be gifted. The remaining 1% must come from the borrower’s personal funds.

There is an income limit of 80% of the area median. The property purchased may be located anywhere within the City of Dubuque. Single family homes and duplexes are eligible. The city’s rehabilitation program’s inspector must inspect the property before a loan can be approved. All properties that use federal funding are required to be lead safe or free of deteriorated paint.

Waterloo
Downpayment Program

Assistance Available:
The Waterloo Housing Authority offers downpayment assistance to non-traditional first time homebuyers. This assistance is in the form of a 5 year forgivable second mortgage. If the homebuyer sells the property before the 5 year period expires, any recaptured portion of the loan will be used to replenish the loan fund.

Qualifications:
You must be a current resident of Waterloo for at least 1 year. Your household income may not exceed 80% of the area median. You have to be a first time homebuyer (have not owned a home in the past 36 months). You cannot own any other residential property. All closing costs should be covered by the borrower’s personal funds. Completion of Home Buyer Training provided by Family Management or Operation Threshold is required.