Iowa Finance Authority
Programs

Military Homeownership Assistance Program

IMPORTANT NOTE: 

There are several important changes in the Military Homeownership Assistance (MHOA) Program resulting from the recent enactment of the Home Base Iowa Act. The following changes in the MHOA Program are effective July 1, 2014:
 

  1. Funding for the program increased from $1.6 million last year to $2.5 million for fiscal year 2015. 
     
  2. Eligibility for the grant has been expanded to include service members who served 90 days of active duty between August 2, 1990 and April 6, 1991. Previously, the grant was only available to those whose dates of qualified service were after September 11, 2001.
     
  3. The financing that may be offered by IFA Participating Lenders in conjunction with the MHOA grant was expanded to include 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 permanent, fully amortizing mortgage loan with a term not less than 5 years which 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 Military Homeownership Assistance Program provides eligible service members and veterans with a $5,000 grant that may be used toward entry cost assistance, such as down payment and closing cost assistance 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.

Eligibility

  • 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.

AND

  • 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 permanent, fully amortizing mortgage loan with a term not less than 5 years which 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.
  • The home must be the borrower’s primary occupancy residence.

The home must be one of the following:

  • 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)
  • Condominiums
  • Townhomes
  • Duplexes, if one of the units will be the primary residence of the service member
  • Completion of acquisition/renovation of qualifying home. Refinancing interim mortgage financing of not more than 24 months (at time of new mortgage closing) used for the purpose to construct the residence or renovation of an existing home that has not been occupied by the MHOA applicant, spouse or fiancé. Remember, prior approval to completion and occupancy is required.

Application Process

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.

More Information
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.

Notice Notices
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As of 7:59 AM, July 25, 2014
Mortgage Rates starting at: 3.750 %
 
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 1. PREPARE
Use our eligibility quick check to determine which of our safe, affordable mortgage finance programs is right for you.


 2. PREQUALIFY
Visit a
Participating Lender to prequalify for a loan.

 3. APPLY

  • After you've signed a purchase agreement on the home you wish to purchase, you can apply for a loan! Be prepared to provide your loan officer with all of the necessary documentation.
  • Once you've applied, the processor will review your credit report and verify your assets, income and payment history. A home appraisal - paid for by the borrower - will be performed during this phase of this process.
  • The underwriter at your lending institution will make sure you qualify for the loan.

 4. CLOSE

The closing process means you're almost there. After you sign the required paperwork, you'll receive the keys to your new home!

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