Iowa Down Payment Assistance Programs

The majority of the Iowa down payment assistance programs are meant for first time home buyers. A first time home buyer is typically described as an individual who has not owned a home in the past three years. However, the state has a few down payment assistance programs that are available for people who have owned a property in the last three years.

The state administered community development block grant is given to small units of the local government. These units must be involved in initiating and completing community development activities. This grant was authorized in 1974 by the Congress. It gives states and local governments grants to aid in the development of housing and creation of employment opportunities for low and middle income people. This explains why it is used to assist first time home buyers to meet their partial down payment costs.

The CDBG is used to run another program called Entitlement Communities. This program focuses on developing communities by providing a suitable environment and decent housing conditions. The Entitlement communities program focuses on large cities and urban centers. The grant is released annually. The state assists in down payment in various ways. For example, the state can give an interest rate of 5.25% with no down payment assistance, or an interest rate of 5.99% coupled with down payment assistance.

The other Iowa down payment assistance programs are city programs. For example, there is a city program that offers to reduce the principal value by $10000, assist with 95% of the closing cost and half of the down payment cost. In fact some of the Iowa down payment assistance programs offer grants (up to $1500) to aid in standard repairs. These repairs should be aimed at raising the housing conditions to meet standard minimum requirements set by the state authorities. These programs have been essential in the development of communities and cities.

Below is a list of Iowa Down Payment Assistance Programs:

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