If you want to buy a home in Iowa but need help coming up with the necessary down payment and closing cost money, the Iowa Finance Authority may have a solution for you. The Iowa Finance Authority has first time home buyer programs and down payment assistance that can get you into your dream home faster than you think. To qualify for these programs, home buyers must apply for them through participating mortgage lenders and banks located around Iowa.
Iowa Finance Authority First Time Home Buyer Programs
For many Iowans the biggest barrier to getting into a home is saving enough money to cover closing costs and down payment requirements. With the cost of goods going higher every day, the dream of home ownership could just seem like a distant fantasy. Luckily the IFA has the FirstHome and FirstHome Plus Homeownership programs to assist moderate and low income households become home owners.
- FirstHome Program – To be eligible for this program you must be a first time home buyer unless you are a Veteran or buying a home in a Targeted Area. Home buyers using this program cannot have their household income go above the program determined income cap except in Targeted areas. Also, home values are capped for this loan program unless they are located in a Targeted Area.
Targeted Areas are areas - typically counties - that have been deemed by the IFA and HUD as areas that have special economic and community development needs. If you plan to purchase a home in a Targeted Area income caps and property price caps are expanded to allow more people to qualify to use this program.
This program offers home buyers affordable mortgages with low fixed rate interest mortgages. If you are a Veteran and have owned a home in the past, you may not have to worry about the first time home buyer requirements.
In all cases, if you have questions about eligibility requirements of this program, be sure to ask your lender if the area that you are interested in falls into a targeted area.
- FirstHome Plus Program – This home buyer program assists buyers who would have a hard time coming up with the necessary funds to purchase a home of their own. You can get up to $2500 to help with down payment and closing costs. You can have an annual household income of no more than $46,800 to be eligible for this program.
Are There Down Payment Assistance Programs In Iowa?
The State of Iowa, through the Iowa Finance Authority offers two down payment assistance programs: one to Veterans and the assistance available through the FirstHome Plus Mortgage Program (See above for the the FirstHome Plus Mortgage down payment assistance details).
Military Service Member Home Ownership Assistance Program - or the MHOA - is designed to assist eligible servicemen to be able to buy a home in Iowa. A qualified veteran can received up to $5000 that can be used for closing costs or down payment. This benefit can only be used for a primary residence. Second homes and investment property would not qualify for this program. To be eligible you must be a surviving spouse for a soldier who served honorably, has a federal status as being injured while on active duty since September 11, 2001 or has served 90 days active duty since September 11, 2001.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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