Iowa is a beautiful state. It’s also a place steaming with hometown pride. With its picturesque countryside, golden rolling plains covered in cornfields and the 19th-century gold-domed State Capitol Building in Des Moines, you just can’t resist Iowa’s innate charm.
The state has kept its French colonial influences. From the architecture of famous landmarks and farmhouses to the local culture, it’s a good mixture of American-European heritage. These appeal to many Americans, making them wish to settle down or retire in Iowa.
The Housing Market
Iowa’s Housing Market looks strong and growing. According to Zillow date through October 31, 2017, home values in the state has generally increased over the past year by 4.3 percent. The data also forecasts that this rising trend will continue in 2018.
While the United States median home price is at $259,900, the median price in Iowa remains lower. As of October 31, Iowa median listing price is at $169,000.
This robust housing market attracts more potential homebuyers as homes in the area are generally much cheaper compared to most areas in the country.
To give a more concrete example, let’s use the 20 percent down payment requirement of most conventional loans.
For the national median price, the down payment equals $51,980. In Iowa, you will only need $33,800 down payment for a median-priced home. This is 35 percent lesser than $51,980.
Bridging Homebuyers and Homes
Despite the relatively cheaper mortgage down payment, some Iowan homebuyers still struggle to come up with the needed money.
Those who are having some difficulties in home buying may turn to the Iowa Finance Authority (IFA).
IFA is a state agency that has championed affordable home financing programs for numerous of Iowans. For 40 years, IFA has created various programs to help assist and develop the whole of Iowa. The programs include mortgage, down payment as well as closing cost assistance.
Closing Cost Assistance
One of the newest assistance programs from IFA is the closing cost assistance for conventional financing. Eligible homebuyers may benefit from a maximum of $1,500 worth of financial aid.
However, those who are interested must act quickly. The program can only accommodate approximately 230 qualified individuals and it is only available for a limited time.
Down Payment Assistance
Two down payment assistance programs are offered by IFA. These financing assistance programs must be used in combination with their respective mortgage programs.
1. FirstHome Plus Program
This down payment and closing cost assistance program must be used in conjunction with the FirstHome mortgage. This assistance offers a maximum of $2,500 worth of financial aid. First-time home buyers who are planning to purchase their primary home Iowa can be eligible for this assistance.
2. Homes for Iowans Plus Program
First-time and repeat homebuyers can take advantage of this second assistance program from IFA. The property to be purchased must be the homebuyers primary residence and must be located in Iowa.
Like the FirstHome Plus, eligible buyers can benefit from $2,500 as down payment and closing cost assistance. The Homes for Iowans Plus Program must be used in combination with the Homes for Iowans mortgage program.
To learn more about these different down payment assistance programs, you may visit the IFA official site.
If you wish to learn more about other assistance options, connect with a DPA expert. They can help you find a good down payment assistance program in Iowa that can work well with your mortgage of choice.
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