Military Service Member Homeownership Assistance

The Iowa Legislature created the Military Service Member Homeownership Assistance Program (MHOA) in 2005 to help eligible armed forces service members purchase a primary residence in Iowa.

Benefits
The program provides up to $5,000 that may be used toward down payment on a qualifying home purchase and/or closing costs on a qualifying first purchase money mortgage.

Qualifications
The program is available to service members who use IFA’s FirstHome program and at the time of applying for the program:

• Have served 90 days active duty since September 11, 2001. Active duty need not be consecutive; it may be cumulative. Inactive Duty Training (IDT), Annual Training (AT) and Active Duty for Training (ADT) may not count toward active duty
• 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 served honorably
  
  AND
  
• Receives prior approval before completion of purchasing a qualified home
• Utilizes an IFA Participating Lender (if financing the purchase); and
• Uses IFA’s FirstHome or FirstHome Plus program, if eligible. Or if not eligible for FirstHome or FirstHome Plus, uses a permanent mortgage loan for financing the purchase
• The home must be located in the state of Iowa
• The home must be the borrower’s primary 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

Application Process
If financing the purchase transaction:
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, four months of leave and earnings statements or other documentation satisfactory to the Iowa Department of Veteran’s Affairs, and government issued photo ID.

If cash financing the purchase transaction
1. Request a "cash" grant application package and submit a scanned bona fide purchase agreement to IFA:
email; or
fax: 515.725.4901; or
mail: 2015 Grand Ave. Des Moines, IA 50312

2. Complete the grant application package and email, fax or mail the required forms to determine eligibility directly to IFA. The forms usually needed to establish military service include a copy of a valid DD Form 214, four months of leave and earnings statements or other documentation satisfactory to the Iowa Department of Veteran’s Affairs, and government issued photo ID. (The grant application request form provides specific information about necessary documentation.) IFA requests the grant application packet two weeks prior to the needed approval date and stresses that only under rare circumstances may the approval be issued in less than one week. IFA must receive, review and approve all grant applications prior to purchase closing.

3. Upon confirmation of military service member eligibility from the appropriate Military Office and IFA’s review of the application, IFA shall notify the service member that the grant application has been approved, is insufficient or is denied. The “approval period” is up to 60 days for completion of purchase on an existing or completed property and up to 120 days for properties under construction/renovation. (An application with purchase closing dates that exceed the applicable 60 or 120 days will not be accepted for reviewed by IFA until within the 60 or 120 days.)

4. A Title Guaranty Owner’s Certificate is required to ensure clear title for all transactions.
 
5. All service members, co-buyers and spouses must execute the Military Grant Agreement and Certification to certify primary residency, which shows an understanding that this is a one-time grant and that grant funds may be used only for down payment and/or closing costs relevant to the purchase.
The service member must advance his/her own funds for the “cash closing” purchase. IFA reimburses the service member post-closing of the qualified home purchase. Within 30 days following closing the service member must submit the request for reimbursement and all required forms pursuant to the request for reimbursement form. Typical forms for reimbursement include Military Grant Agreement and Certification; a copy of the complete HUD-1 Settlement Statement with signatures of buyer, seller, and closing agent/attorney; a certified copy of the warranty deed; evidence of Title Guaranty Certificate; Schedule A; and any other documentation requested with approval

More Information
All grants under the program are subject to funding availability. Grants are awarded in the order in which completed grant applications are received. Grants awarded pursuant to the program are personal to their recipients and my not be assigned. Only one grant shall be awarded per home purchase. An eligible service member shall receive only one grant award under the program.

Contact us
Email
800.432.7230