There are a variety of grants and assistance programs available to first-time home buyers. Declining home sales, increases in federal funding, and favorable interest rates have combined to form the perfect storm for first-time home owners, making this a good time for Iowans to invest in a home. But before you commit to financing, be sure to explore first-time homeowner grants in the area.
Iowa Finance Authority - FirstHome Plus Program
Sponsored by the Iowa Finance Authority (IFA), the FirstHome Plus Grant program provides cash to help first-time homeowners with down-payment costs. According to IFA's website, the program provides "assistance of up to $2,500 to help eligible borrowers with closing costs, down payment or minor repairs (reference 3)." The grant is open to Iowa residents who purchase a home under $289,000 and who meet certain credit requirements (reference 3). All grant applicants must be enrolled in IFA's FirstHome program and have an annual household income of up to $49,600 (reference 3).
Iowa Finance Authority
2015 Grand Ave.
Des Moines, Iowa 50312
515.725.4900
www.iowafinanceauthority.gov
The American Dream Down-payment Initiative (ADDI)
According to the U.S. Department of Housing and Urban Development (HUD), the American Dream Downpayment Initiative (ADDI) authorizes up to $200 million annually to help low-income families purchase homes. According to HUD, the grant "aims to increase the homeownership rate, especially among lower income and minority households, and to revitalize and stabilize communities (reference 4)." Specifically, the grant should be used to help first-time homeowners with down payment and closing costs.
U.S. Department of Housing and Urban Development
451 7th Street S.W.
Washington, DC 20410
202-708-1112
www.hud.gov
Iowa Finance Authority - Military Homeownership Program
Sponsored by the Iowa Finance Authority (IFA), the Military Homeownership Program provides home buying assistance to military personnel looking to purchase a single-family home, townhouse, condominium or duplex. According to IFA, the grant provides military service members with "$5,000 that may be used toward down payment on a qualifying home purchase and/or closing costs on a qualifying first purchase money mortgage (reference 5)."
There are a number of qualifications applicants must meet to participate in the program, however the basic qualifications state that the applicant must enroll in the IFA's FirstHome program and have served 90 days active duty since September 11, 2001 (reference 5).
Iowa Finance Authority
2015 Grand Ave.
Des Moines, Iowa 50312
515.725.4900
www.iowafinanceauthority.gov
First-Time Home Buyers Federal Tax Credit
According to the Iowa Finance Authority (IFA), "homebuyers who purchased a home in 2008, 2009 or 2010 may be able to take advantage of the first-time home buyer credit (reference 2)." The Internal Revenue Service (IRS) reports, "The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit [which] now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010 (reference 1)." According to the IRS, taxpayers must file a paper tax return and attach Form 5405, to claim the $8000 credit on their income taxes (reference 1).
Tags: Finance Authority, Iowa Finance, Iowa Finance Authority, closing costs, down payment, first-time home
