Possible $2,500 in down payment assistance through the Iowa Housing Finance Authority (IHFA). Your local participating lender does the application for you (not all lenders participate). Click here for details.
The USDA’s Direct 502 Housing Loan Program allows for little or no down payment but there are closing costs. For 2010, the maximum adjusted income limits are $36,250 for a 1 person household, 2 at $41,400, 3 at $46,600, 4 at $51,750, 5 at $55,900, 6 at $60,050, 7 at $64,150. RD loans do not have a monthly Mortgage Insurance Premium (MIP). You can apply directly with RD online here, at the local USDA Office (1100 – 12th St SW, Suite C, Le Mars, IA 51031) or by phone at 712-546-5149 ext 4. To figure maximum adjusted income, deduct $480 for each minor and childcare costs that allow for the applicants to be employed. For an applicant 62 years or older, deduct $400.
The USDA also has loans and grants available for those 62 yeas of age or older who can apply for help toward common repairs such as insulation, furnace, windows, roof repairs, electrical, wheel chair ramps, foundation repairs etc. This program is called a 504 loan. More details can be found on RD’s website.
RD also has another program for homebuyers with moderate income known as the Guaranteed Housing Loan Program. You can apply for this loan through a local participating lender and they work with RD to make the loan. To figure maximum adjusted income, deduct $480 for each minor and childcare costs that allow for the applicants to be employed. For an applicant 62 years or older, deduct $400. For a household size 1-4, the maximum adjusted income is $74,400 and 5-8 is up to $98,200 with a maximum loan amount of $165,000. For more details go to: www.rurdev.usda.gov/ia.