No matter if it’s your first or fifth home, buying a home is a big investment. The Iowa Finance Authority makes the process easier.
Interest rates have fewer mortgage fees and credit score does not affect interest rate.
The amount of down payment is determined by loan type. Loans may require only 3% down payment and may include reduced mortgage insurance coverage for borrowers with lender’s qualifying income of less than 80% of the Area Median Income. Down payment and closing cost assistance programs are available to help cover upfront expenses.
Borrowers may request a free Iowa Title Guaranty Owner’s Certificate at closing. With this certificate, if a title issue arises, Iowa Title Guaranty will assume attorneys’ fees, costs and expenses associated with defending the title to your home. While title defects are not common in Iowa, they do occur. And at no cost to you, an Iowa Title Guaranty Certificate is more than worth it.
Homes for Iowans is 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.
All loans subject to a minimum 640 credit score. For cases where borrower has no credit score, non-traditional credit documentation allowed in accordance with agency guidelines for the loan type.
The maximum debt-to-income ratio is 45%.
Required on conventional loans only. If all borrowers are first-time homebuyers then only one of the borrowers must complete the education. More details and course options can be found here.
Interested homebuyers must apply for this financing by contacting an IFA participating lender.
The lender will collect the necessary documents to verify eligibility, process and underwrite the loan application.
If the homebuyer is eligible, the lender will guide them through the closing process and to collecting the keys to their new home.
We’re here to help you every step of the way. Once you’ve been approved for a Homes for Iowans mortgage, consider pairing it with one of our down payment assistance programs to help with down payment and closing costs. The same Homes for Iowans eligibility requirements apply.
GRANT: The down payment assistance grant provides homebuyers with a $2,500 grant to assist with down payment and closing costs.
LOAN: The 2nd Loan program offers a loan of up to 5% of the home’s sale price or $5,000, (whichever is less) and is repayable at time of sale, refinance of first mortgage paid in full. No monthly payment required!
The Homes for Iowans Program can help first-time and repeat home buyers purchase a home in Iowa.
Catch Up With Us on Social