Iowa First-Time Home Buyer: 2022 Programs and Grants
Iowa first-time home buyers can now use the options provided by the Iowa Finance Authority (IFA). This agency has special mortgages with low rates and down payment assistance programs that can make their purchase more affordable.
The Iowa Finance Authority (IFA) has a Firsthome Program that offers special mortgages to eligible Iowa first–time home buyers. This program provides a down payment grant totaling no more than 50% of the minimum down payment required by the lender and 100% reasonable closing costs to a maximum grant of $10,000.00. IFA loans typically have below-average interest rates compared to the rest of the market. And they come with lower closing costs, at least partly thanks to the free Iowa Title Guaranty Owner’s Certificate, which might replace costly title insurance. Maximum household income limits vary by county and range from $79,500.00-$99,700.00 for a household of two.
There are certain criteria that must be met to be eligible. Applicants must meet the income limits and have no more than $40,000.00 in liquid assets as defined by HUD. They must be first-time homebuyers or have not owned a home in the past 3 years including vacant lots and mobile homes. The property must be the applicant’s primary residence.
The new Minority Down Payment Assistance program offers eligible Iowans with a $5,000.00 down payment and closing costs assistance grant when paired with the FirstHome program mortgage. The program is subject to funding availability.
The Homes for Iowans program gives you the option of getting a grant to assist with down payments and closing costs or a loan from the 2nd Loan program, not both. You cannot combine Homes for Iowans down payment and closing costs options with FirstHome down payment and closing costs options. The down payment and closing cost assistance grant provides homebuyers with a $2,500.00 grant to assist with down payment and closing costs. The 2nd Loan program offers a loan of up to 5% of the home’s sale price or $5,000.00, (whichever is less) and is repayable at time of sale, refinance, or the first mortgage is paid in full. Homes for Iowans are available to first-time and repeat homebuyers who are purchasing a primary residence in Iowa. The home must be occupied by the buyer as a primary residence within 60 days of closing.
If you are an Iowa first-time home buyer and you need more information, visit their official site to find the right program or contact the Iowa Finance Authority (IFA) 515.452.0400 and [email protected].