First time home buyer Iowa programs and incentives are currently helping would be homeowners of all types become a part of the rising real estate market in the state. If you are looking for your piece of the pie in Iowa, then you should take a close look at the state programs that expressly offer you a chance to break into the market as a first time home buyer.
What Is the State Program That I Can Go to In Iowa for Help in Becoming a Homeowner?Â
The Iowa Finance Authority (IFA) is the state agency that helps to divert federal funds in the appropriate ways and also offers proprietary programs of its own. The IFA has grants available as well as partnerships with local banks to facilitate helpful programs of different types.
What Is the Take Credit Mortgage Credit Certificate?
The Take Credit Mortgage Credit Certificate is a program that can reduce the tax liability of first time home buyers up to $2000 per year for up to 30 years. The program can last for the entire life of the loan. In order to qualify for the Take Credit Mortgage Credit Certificate, a borrower has to receive its financing through a bank that works in conjunction with the IFA. If a credit is not used in a certain year, the benefit may be moved up and used up to three years after. Borrowers who refinance may transfer the credit certificate under certain conditions.
The IFA website says that the funding for the Take Credit Mortgage Credit Certificate is limited, so hurry if you want to take advantage of this benefit.
How Does the FirstHome Program Help Buyers?
The FirstHome Program is meant for first time home buyers who are looking to buy a primary residence in the state. It provides 25 or 30 year fixed rate mortgages as long as buyers meet certain purchase price and income limits. These limits are different for each county in Iowa, so check the website in order to determine the limits for the property that you are considering.
What’s Different About the FirstHome Plus Program?
The FirstHome Plus Program is similar to the FirstHome Program with additional benefits. Alongside the 25 or 30 year fixed rate mortgage that a first-time homebuyer can receive, there is also $2500 available as a grant that can be applied to closing costs or to the down payment. The same income and purchase price limits apply for the Plus Program, and borrowers are limited to a single use of this program. Only mortgages that are underwritten by a participating lender are eligible for the FirstHome Plus Program. There are also fewer mortgage fees associated with this program than with conventional, conforming loans, and there is no minimum down payment requirement for either the FirstHome Program or the FirstHome Plus Program.
What Is the Homes for Iowans Program?
The Homes for Iowans Program is a program that is meant to help low credit Iowans get into a home as an owner for the first time. Although the Homes for Iowans program is available to other buyers that are not first timers, it is still a program that is marketed to first time home buyers as well. The program gives an added convenience of working closely with a local lender who will be able to walk the borrower through the entire process of buying the home. Most notably, this program does not change the interest rate according to the credit rating of the borrower. However, there is an equally important Title Guaranty certificate that comes with the Homes for Iowans Program that protects the interest of the borrower in the property title. If there is a defect in the title found during the tenure of the borrower as owner and resident or after the sale of the property, this certificate becomes a valuable asset in a legal defense.
What Is Different About the the Homes for Iowans Plus Program?
The Homes for Iowans Plus Program is a program that has all of the benefits of the Homes for Iowans Program along with a $2500 grant that can be used for closing costs or for a down payment. The qualifications for this program are similar to the Homes for Iowans Program, and the program is available for use only once by a first-time borrower.
Are There Any Federal Funding Programs Available in Iowa?
If you are eligible for a federal loan program under the Federal Housing Administration (FHA), the United States Department of Veterans Affairs (VA), or the United States Department of Agriculture (USDA), you will have a much easier time qualifying for many of the loan programs that are mentioned above. The state of Iowa works in conjunction with these federal programs, and you may be able to use many of the benefits from the federal and state programs together.
2 Point Highlight
There are also fewer mortgage fees associated with this program than with conventional, conforming loans, and there is no minimum down payment requirement for either the FirstHome Program or the FirstHome Plus Program.
The state of Iowa works in conjunction with these federal programs, and you may be able to use many of the benefits from the federal and state programs together.
