Military Homeownership Assistance Program
|The Iowa Finance Authority and Iowa Association of REALTORS® welcomes you to Iowa house hunting season! There are lots of bonuses for home buyers this summer - and one lucky house hunter will win $5,000! Simply visit IowaHouseHunt.com to watch a series of short videos and enter to win big this summer!
The Military Homeownership Assistance Program provides eligible service members and veterans with a $5,000 grant for down payment and closing costs on a qualifying home purchase. Eligible service members may access the Military Homeownership Assistance Program to be used with a qualifying mortgage or cash purchase transaction. The Military Homeownership Assistance grant may also be combined with a Plus grant for a total of $7,500 of down payment and closing cost assistance for borrowers who qualify for both programs. Borrowers are limited to one-time use of a Plus grant and one-time use of a Military Homeownership Assistance grant.
- Have served 90 days active duty between August 2, 1990 and April 6, 1991 or September 11, 2001 to present. Active duty need not be consecutive; it may be cumulative. Inactive Duty Training, Annual Training and Active Duty for Training may not count toward active duty; or
- Is a federal status injured service person having served in active duty August 2, 1990 and April 6, 1991 or September 11, 2001 to present; or
- Is a surviving spouse of said eligible service person, all who have had a discharge other than dishonorable.
- Receives prior approval before closing on a qualified home.
- Utilizes an IFA Participating or Facilitating Lender and IFA first mortgage (if financing the purchase).
- Utilizes an IFA Participating Lender to receive a non-IFA first mortgage if IFA deems it economically feasible and financially advantageous. At this time, IFA will approve a grant with non-IFA financing if the lender demonstrates that such financing is a fixed rate, permanent, fully amortizing mortgage loan that is at least 25 basis points lower APR* than the most comparable IFA mortgage product available at the time the applicable Good Faith Estimate is issued.
*NOTE: IFA does not use the APR listed on the TIL since it excludes certain financing costs. Instead, in making its analysis of whether a non-IFA loan qualifies, IFA will use the APR calculator found at www.bankrate.com.
- The home must be located in the state of Iowa and must be purchased by the eligible service member.
- The home must be immediately occupied by the service member/spouse as the borrower’s primary residence.
- Single-family residences (including “stick-built” homes, modular homes or manufactured homes, provided the home is attached to a permanent foundation and is taxed as real estate).
- A property containing up to four units, if one of the units will be the primary residence of the service member
Contact a Participating Lender today to determine eligibility and begin the application process.
Typical forms usually needed to establish military service include:
- A copy of a valid DD Form 214 (Member 4 Form or higher)
- Four months of leave and earnings statements or other documentation that may be required and government issued photo ID. Cash financing is also available, please contact the military homeownership team for details.
Funding for this program is provided by state appropriation and is subject to funding availability. Assistance is awarded in the order in which completed applications are received. Assistance awarded pursuant to the program is personal to their recipients and may not be assigned. An eligible service member shall receive assistance only once, and only one award per home purchase.