If you don’t have the funds available for down payment on the purchase of a home you can sometimes obtain assistance from various programs to help you get the funds needed for down payment. This is called a down payment assistance program. Dorothy Mathis of Lincoln Savings Bank is happy to provide several down payment assistance programs to those living in Ankeny, Des Monies, Urbandale as well as the whole state of Iowa. For more information on down payment assistance programs, call me at 515-327-9938.
Iowa Finance Authority
The Iowa Finance Authority (IFA) has touched the lives of countless Iowans through a wide variety of affordable financing programs throughout its 40 year history.
No First Time Homebuyer Requirements
The Iowa Finance Authority (IFA) offers affordable mortgage and down payment assistance programs for both first-time home buyers and those who have owned a home previously. You must apply for these programs by going through a local participating lender, such as Lincoln Savings Bank.
The IFA programs offer, to eligible applicants, the option of pairing a grant of up to $2,500 to help with down payment and closing costs with an affordable, fixed rate mortgage, even if you have previously owned a home.
IFA also administers the Military Homeownership Assistance Program, which provides eligible service members and veterans with a $5,000 grant for down payment and closing costs. The Military Homeownership Assistance grant may be combined with a $2500 grant for a total of $7,500 of down payment and closing cost assistance for borrowers who qualify for both programs. However, an individual borrower is limited to one-time use of a Plus grant and one-time use of a Military Homeownership Assistance grant.
Another program that other lenders don’t offer is a conventional mortgage product with 3% down and no mortgage insurance! This also is available to applicants who have previously owned a home. It is not limited to first time homebuyers.
Federal Home Loan Bank
Home$tart is a down payment and closing cost assistant program offered by Federal Home Loan Bank (FHLB.) Each year, FHLB provides funds through the Home$tart® Program to qualifying home buyers through member financial institutions such as Lincoln Savings Bank for down payment and closing cost assistance. Funds are made available on a first-come, first-served basis, subject to availability
No First Time Homebuyer Requirements
Lincoln Savings Bank is offering a $5,000 grant to income eligible home buyers. Funds must be used for down payment, closing costs or approved expenses associated with home buying. Although there is no first time homebuyer requirement all first time homebuyers must take a Homebuyers Education Course.
Almost all loan programs on a primary residence allow for gifts funds from family members to help with down payment. If you have a grand parent who is willing to give you the funds, it’s pretty easy to document that source of down payment assistance.
First Time Homebuyer Savings Accounts
The State of Iowa has a new program which allows a tax deduction on savings accounts designated as a first time home buyer savings account. The limit for the tax deduction is $4000/year for a married taxpayers filing a joint return or $200 for all other tax payers. These figures will be adjusted annually to allow for inflation. This account can build for up to ten years for the deduction. The interest earned on this account can also be deducted. The savings account holder, the one making deposits will designate a beneficiary to use the savings. Only the beneficiary has to be a first time home buyer. Therefore, someone can make deposits the account and tax advantage of the tax deduction even if they are saving for someone other than themselves.
Learn How To Get Qualified
Dorothy Mathis of Lincoln Savings Bank is happy to provide several down payment assistance options based on your individual needs. Dorothy does down payment programs in Ankeny, Des Moines and Urbandale as well as the whole state of Iowa. For more information on our programs, and how to qualify, contact Dorothy at 515-327-9938.