IOWA downpayment assistane programs

IOWA downpayment assistane programs

1.     FirstHome and FirstHome Plus Programs are a set of programs offered to first-time buyers as a 25 or 30-year loan. Every qualified borrower is limited to one-time use of one of these programs and the program is not available to borrowers who have previously used a Plus grant.

The FirstHome Program offers a fixed rate mortgage to first-time home buyers who are purchasing a primary residence in Iowa.  

The FirstHome Plus Program offers a fixed rate mortgages PLUS up to $2,500 of grant funds. The loan is offered to help you with down payment and closing costs. 

Both the FirstHome and FirstHome Plus Programs address to first-time home buyers who meet the income and purchase price limits. To be an eligible borrower, you have to prove that your home doesn’t cost more than $258,000 and you occupy the home as your primary residence. You also have to reach a minimum credit score of 640, a maximum debt-to-income ratio of 45 percent, and you must prove that you can repay the loan. A higher score may be required in some circumstances.

Home buyers who use either of these 2 programs may be subject to recapture tax, in which case, the Iowa Finance Authority will reimburse the homeowner.

 

2.     Homes for Iowans and Homes for Iowans Plus Programs is a 25 or 30-year loan with no first-time restriction. Thus, the programs are available to both first-time and repeat home buyers who are purchasing a primary residence in Iowa. Every qualified borrower is limited to one-time use of one of these programs and the program is not available to borrowers who have previously used a Plus grant.

The Homes for Iowans Program offers a fixed rate mortgage for home buyers who meet the program income and purchase price limits. 

The Homes for Iowans Plus Program offers a fixed rate mortgage PLUS up to $2,500 of grant funds to help you with down payment and closing costs. For this program, all home buyers who meet the program income and purchase price limits are welcome. To be an eligible borrower, you have to prove that your home doesn’t cost more than $316,000 and you occupy the home as your primary residence. You also have to reach a minimum credit score of 640, a maximum debt-to-income ratio of 45 percent, and you must prove that you can repay the loan. A higher score may be required in some circumstances. Home buyers who use either of these 2 programs may be subject to recapture tax, in which case, the Iowa Finance Authority will reimburse the homeowner.

 

3.     HFA Preferred Risk Sharing is a new conventional mortgage program. This program can be used in combination with one of the FirstHome and Homes for Iowans programs. It is a Risk Sharing program because it allows you to avoid the cost of mortgage insurance with less than a 20% down payment. 

With HFA Preferred Risk Sharing you will need a 3% down payment, being considered the lowest monthly payment mortgage option on the market. The program was created by Fannie Mae exclusively for State Housing Finance Agencies and it is only available through IFA. The interest rates are above-market in order to compensate the lack of Mi. There are no first-time homebuyer requirements, but no manufactured houses and no condos are allowed. The property has to be your primary residence. You are required to attend a homebuyer education course through a specialized provider for getting counseling and support. You are allowed to take an online course too, prior to access the program. You are required to use the services of an IFA Participating or Facilitating Lender who will facilitate the loan approval process with the home buyer, originate and close mortgage loans, and then deliver eligible mortgage loans to IFA’s master provider after closing.

 

4.     Military Homeownership Assistance Program is a down payment or closing costs loan which can be used together with a qualifying mortgage or cash purchase. This program is for eligible service members and veterans who can receive a $5,000 grant. To become an eligible borrower, you have to be an honorable discharged or a never remarried surviving spouse and live in the state of Iowa.

Military Homeownership Assistance Program offers you a $5,000 grant or a total of $7,500, if the program is combined with a Plus grant. You have also to receive prior approval before closing on a qualified home. You are allowed to buy a property which may contain up to four units where one has to be your primary residence.

Military Homeownership Assistance Program allows you to buy single-family residences (including “stick-built” homes, modular homes or manufactured homes) and the home is required to be attached to a permanent foundation and to be taxed as real estate. You can also buy condominiums and townhomes which you are required to occupy immediately after purchasing. You are required to use the services of an IFA Participating or Facilitating Lender who will facilitate the loan approval process with the home buyer, originate and close mortgage loans, and then deliver eligible mortgage loans to IFA’s master provider after closing.

 

5.     Take Credit Mortgage Credit Certificate Program is a 30-year, fixed-rate, fully amortizing loan. You may use this program for claiming 50 % of your mortgage interest (up to $2,000) as a tax credit each year for up to 30 years. You are thus allowed to reduce your federal tax liability for every year of the mortgage or carry forward your unused credit for up to three years.

Take Credit Mortgage Credit Certificate Program requires you to be a first-time home buyer or to purchase the home in a targeted area. The program is also available to military veterans honorable discharged who has not previously used a Mortgage Revenue Bond Program. You can become an eligible borrower, if you meet the applicable federal income limits for Iowa, which vary by the property size and by county. You are also required to occupy the home immediately and this has to be your primary residence.

Take Credit Mortgage Credit Certificate Program allows properties which have a maximum price of $258,000 or $316,000 (for targeted area residences). You are required to use the services of an IFA Participating or Facilitating Lender who will facilitate the loan approval process with the home buyer, originate and close mortgage loans, and then deliver eligible mortgage loans to IFA’s master provider after closing.

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