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Interest free down payment assistance for Iowa home buyers

Posted: 1:46 PM, Apr 15, 2019
Updated: 2019-04-15 18:46:21Z
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OMAHA, Neb. (KMTV) — People wanting to a buy home in Iowa may be able to get a little help in doing so. The Iowa Finance Authority (IFA) announced a new down payment assistance program which will offer a 0% interest loans for repeat or first-time home buyers.

The IFA says the program will offer, "A 0% loan for up to five percent of the sale price or $5,000, whichever is less and is repayable upon refinance or sale of the home."

IFA Executive Director Debi Durham says they're aware that down payments are often one of the biggest barriers that home buyers face.

They IFA says the $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."

You can read the IFA's full release below:

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 is 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.