Iowa Finance Authority
Programs

Military Homeownership Assistance Program

IMPORTANT NOTE:  As of April 10, 2014, all funding made available for the Military Homeownership Assistance Program (300 Series) for the fiscal year ending June 30, 2014 has been reserved.  At this time, reservations for this program are on a waiting list basis and grants will only be funded if and when a new appropriation is approved by the State Legislature.  Grant funds reserved after April 10, 2014 should not be funded at closing.  Instead, pre-approved wait-listed applicants will be funded post-closing by IFA through a principal reduction when and if funds are again available. Please stay tuned for future updates as the legislative session comes to a close. We anticipate more information about funding as it relates to this program in the coming weeks.

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 since September 11, 2001. 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 since September 11, 2001; 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 (if financing the purchase).
  • Uses an IFA first mortgage program if the eligible service member qualifies for it. If a service member does not qualify for an IFA first mortgage program, another permanent, fully-amortizing mortgage loan may be used.
  • If service member is ineligible for IFA first mortgage program, the alternative financing program offered by the IFA facilitating lender must be a permanent, fully amortizing, fixed rate mortgage loan that has an APR at least twenty-five basis points lower than the IFA mortgage loan as of the date the Good Faith Estimate is issued.
  • 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.

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