income qualifications

Buyers may also qualify for down payment assistance! 

Eligible buyers approved for a mortgage will have access to down payment assistance up to 50% of lender required down payment and applicable closing costs. Households requiring co-signers from outside of the purchasing household are ineligible. This will be filed as a forgivable mortgage on a monthly receding basis for 5 years and subject to recapture if the housing unit if the LMI buyer transfers, sells, vacates, or abandons the property during the 5- year period, unless such sale or transfer meets the requirements of these guidelines or IEDA provides approval in advance of the transfer. 

Homeowners that refinance their property within the 5-year period may only do so for the purpose of lowering their interest rate and not for the purpose of receiving funds by cashing out equity. Refinancing to lower the interest rate will require verification from the lender that no funds will be received and a subordination agreement between the homeowner and the subrecipient is required. If the homeowner receives funds from refinancing, they will be required to repay all CDBG-DR funding. IEDA estimates that this assistance will not exceed $35,000 per housing unit.  

Homebuyers should apply for State and local homebuying assistance programs (e.g., USDA and Iowa Finance Authority programs) before applying for CDBG-DR assistance to avoid a Duplication of Benefit.