Down Payment Assistance

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The City of Iowa City, GreenState Credit Union, and Hills Bank are partnering to increase homeownership opportunities for households that do not meet traditional financial parameters in an effort to close the racial homeownership gap in Iowa City.

GreenState Credit Union and Hills Bank will provide financing for underserved neighborhoods and households that have experienced difficulty obtaining a standard 30-year mortgage. They will offer flexibility in credit, assets, and job tenure in consideration of mortgage approval. Potential buyers will receive homebuyer education and financial counseling through Horizons at no cost.

The City of Iowa City will provide up to $24,999 in down payment assistance for eligible homebuyers using federal CDBG/HOME funds.

Buyer Eligibility

Household income must be under 80% of the Area Median Income to qualify for down payment assistance. This amount is based on household size and includes income for anyone who will live in the purchased home.

Maximum Household Income (Effective June 1, 2024)
- 1-person household: $64,200
- 2-person household: $73,400
- 3-person household: $82,550
- 4-person household: $91,700
- 5-person household: $99,050
- 6-person household: $106,400
Buyer must qualify for financing through GreenState or Hills for the cost of the home not covered by the City's down payment assistance.
All participants must complete a HUD-approved homebuyer education course.
Buyers must contribute a minimum of $250 of their own funds for down payment or closing costs and show two months of housing payments in reserves (savings that will be available after the closing in case of emergency).
Applicant must be a first time homebuyer with no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse.

Property Eligibility

Purchased homes must be located within the City of Iowa City municipal boundaries and out of the flood plain.
Single family and condo units are eligible. Mobile home purchases are not eligible.
The purchase price of the home cannot exceed $271,000.
Properties cannot be located within a 100-year floodplain. City staff will complete an environmental review for each home prior to closing.
Homes must pass a Housing Quality Standards (HQS) inspection and the property must be in compliance with federal lead regulations prior to the closing.
Homes must be owner-occupied or vacant (not a current rental property with tenants) prior to purchase.