The Home$tart program is available to qualifying home buyers earning up to 80% of the median income for their area based on Iowa HUD Income Limits which are adjusted based on household size. Home$tart recipients must also:
Complete a home buyer education class if first time homebuyer
Qualify for mortgage financing with FSB
Be a customer of Farmers State Bank
Home$tart participants may receive up to $7,500 in grant funds.**
You must have a signed purchase agreement to apply for the Home$tart grant.
Home$tart grants may be used to purchase single-family homes, and must be used for your primary residence. There are no neighborhood restrictions (i.e., type or location). If you qualify for mortgage financing from FSB and are income eligible, you will likely be able to receive a Home$tart grant .
Yes, Home$tart grants may only be used for down payment and closing costs. The grant may not be used to pay for moving costs or to pay bills.
If your home is purchased with Home$tart assistance, it is subject to a five-year deed restriction requiring that you repay a portion of the grant if you sell your home within five years. The amount that you would be required to repay is prorated based on the length of time you own the home, and the funds will be deducted from your sale proceeds. However, if you live in the home for at least five years, the grant is 100% forgiven and you never have to repay it .
*Age 18 years or older, all accounts subject to approval.
**Actual amount depends on total need as determined by program guidelines set forth by Federal Home Loan Bank Des Moines.
The Iowa Finance Authority offers two programs that provide home buyers with $2,500 for down payment and closing costs assistance when used in conjunction with the FirstHome or Homes for Iowans mortgage programs.
FirstHome Plus Program
The FirstHome Plus program is available to eligible first-time home buyers who are purchasing a primary residence in Iowa.
Homes for Iowans Plus Program
The Homes for Iowans program is available to eligible first-time and repeat home buyers who are purchasing a primary residence in Iowa.
Eligibility FirstHome Homes for Iowans
Household Income Limit see IFA website $121,800
Home Purchase Price Limit $271,000 $331,000
Must be a First-Time Home Buyer Yes No
Military Homeownership Assistance Program
As of October 23, 2018, all funding made available for the Military Homeownership Assistance Program for the fiscal year ending June 30, 2019 has been reserved.
The Military Homeownership Assistance Program provides eligible service members and veterans with a $5,000 grant for down payment and closing costs on a qualifying home purchase.
Eligible service members may access the Military Homeownership Assistance Program to be used with a qualifying mortgage or cash purchase transaction. Borrowers are limited to one-time use of a Plus grant and one-time use of a Military Homeownership Assistance grant
.
Eligibility
Have served 90 days active duty between August 2, 1990 and April 6, 1991 or September 11, 2001 to present. Active duty need not be consecutive; it may be cumulative. Inactive Duty Training, Annual Training and Active Duty for Training may not count toward active duty; or
Is a federal status injured service person having served in active duty between August 2, 1990 and April 6, 1991 or September 11, 2001 to present; or
Is a surviving spouse of said eligible service person, all who have had a discharge other than dishonorable.
Additional program guidelines may apply. More information can be found at www.iowafinanceauthority.gov.
The City of Cedar Rapids’ First Time Home Buyer (FTHB) Program provides a $1,000—$5,000 forgivable loan to eligible households to assist with down payment costs. To be eligible, participants must meet four main requirements:
Be a First Time Buyer
Be Income Eligible—including income, assets, debt ratio calculations
Purchase an Eligible Property
Secure Acceptable Mortgage Financing
Income Eligibility
Income maximums, based on household size, are shown in the chart below. Additionally, asset amounts and debt to income calculations must be acceptable. Households must meet maximum housing and debt to income ratios of 31% and 43% respectively.
Asset Eligibility
There are several requirements regarding assets (checking, savings, etc.).
Maximum: assets may not exceed $25,000 in non-retirement funds.
Minimum: Applicants must have at least $1,000 in assets at pre-qualification.
Down Payment: In addition to the asset minimum of $1,000, participants are required to contribute their own down payment, which must be available in assets. The minimum down payment varies based upon the total non-retirement assets:
Assets $5,000 or less = $500 down payment
$5,001—$15,000 = $1,000 down payment
$15,001—$25,000 = $1,500 down payment
Property Eligibility
Homes must be within the City of Cedar Rapids limits.
Homes located in the 100-year flood plain are not eligible.
Homes must be owner-occupied or vacant (not a rental property with tenants).
Single-family dwelling and condo units are eligible (mobile home purchases are not eligible).
Homes will be inspected by City staff and must comply with Housing Quality Standards (based on health and safety requirements).
The purchase price of homes may not exceed $135,000 for a single family dwelling.
Additional program guidelines apply. More information can be found at www.CityofCR.com/FTHB