DES MOINES, IOWA (April 15, 2019) — The Iowa Finance Authority today announced a new down-payment assistance-program for first-time and repeat home-buyers. The program offers a 0% loan for up to five-percent of the sale-price, or $5,000, whichever is less and repayable upon refinance or sale of the home.
“One of the biggest barriers facing Iowa home-buyers is coming up with the cash for the down-payment,” said Iowa Finance Authority Executive Director Debi Durham “We’re proud to introduce the new $5,000 down-payment and closing-cost loan-program in partnership with our network of lenders to offer more resources to Iowa home buyers than ever before.”
“We’ve already seen home sales on the rise in Iowa as we head into the spring home-buying season,” said Iowa Association of REALTORS® CEO Gavin Blair. “The Iowa Finance Authority’s new down-payment assistance-program is an exciting announcement that will allow Realtors and lenders to assist even more home-buyers in achieving their goal of homeownership.”
The new $5,000 second-loan program requires no monthly payments and must be used in conjunction with one of the Iowa Finance Authority’s mortgage programs. Eligible home-buyers may have a household income of up to $121,800 and may purchase a home for up to $331,000.
The Iowa Finance Authority also offers additional home-buyer assistance-programs, including a $2,500 nonrepayable down-payment assistance-grant as well as a mortgage credit-certificate, which may provide up to a $2,000 federal tax-credit every year for the life of the mortgage.
Home-buyers can apply for the homeownership programs by contacting one of more than 400 participating lenders throughout the state. Full program details and a listing of lenders offering the programs are available at IowaFinanceAuthority.gov.
The Iowa Finance Authority has assisted nearly 55,000 homeowners realize their dream of homeownership to date.
The Iowa Legislature created the Iowa Finance Authority in 1975 to undertake programs to assist in the attainment of housing for low- and moderate-income Iowans. Since then, the Iowa Finance Authority’s role has grown to include affordable housing, water-quality, and beginning-farmer programs.