You’ve passed many milestones of firsts in your life, and holding the keys to your first home may be the best yet. With your local lender, realtor and the Iowa Finance Authority all on your team, you can rest assured knowing we’ve got you covered.
We’re here to help you every step of the way. Pair one of our down payment assistance programs with your FirstHome mortgage to help with down payment and closing costs. The same FirstHome eligibility requirements apply.
Borrowers who buy their homes using the FirstHome or FirstHome Plus Homebuyer Programs may be subject to recapture tax.
Borrowers repay the government a portion of their gain on the sale of their home, depending on (1) whether there is a gain on the sale, (2) the household income at the time of sale, and (3) if the sale occurs within nine years of buying the home. Recapture Tax is paid directly to the IRS when filing taxes for the year in which the home is sold.
Nothing in the Recapture Tax provisions should prevent borrowers from using IFA's FirstHome or FirstHome Plus Homebuyer Programs.
For IFA FirstHome or FirstHome Plus Loans closed on or after November 14, 2011, if you are required to pay a Recapture Tax to the Internal Revenue Service (IRS), IFA will reimburse you for the actual amount of the Recapture Tax paid to the IRS. Please consult the IRS or a tax professional with any Federal Recapture Tax questions.
Must be a first-time home buyer (Defined as not owning your primary residence in the last three years). OR Be a military veteran with discharge of other than dishonorable and not previously used a mortgage revenue bond program such as FirstHome previously to finance a home purchase. OR Purchase a home in a Targeted Area (please use the eligibility quick check tool to determine if you're purchasing in a Targeted Area).
For cases where borrower has no credit score, non-traditional credit documentation allowed in accordance with agency guidelines for the loan type.
These are minimum requirements; a higher credit score, a lower debt to income ratio, or a down payment greater than 3% may be required in some circumstances. Follow agency guidelines for loan type.