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Single-Family New Construction Down Payment
Assistance
The North Iowa Area Council of Governments is
offering down payment assistance of up to 25% of
the purchase price of 101 newly constructed homes
in the North Iowa area including sites in the
following communities: Charles City,
Clear Lake, Forest City, Garner, Hampton, Mason
City, Mitchell, Northwood, Osage, Riceville, St.
Ansgar, and Stacyville. You can find a
specific list of site
locations, prices, and home designs here.
This assistance is offered in the form of a
5-year, forgivable loan which will be used to buy
down the amount that you borrow for the home. The
forgivable loan works like a grant in that it does
not need to be paid back unless the property is
sold, rented or vacated within 5 years after
closing.
WHAT ARE THE RULES?
1. The homes purchased MUST be one of the participating properties
in this program.
2. You and your family MUST meet the income
guidelines below which are based on the number
of persons in your household (as set by the
Federal Dept. of Housing and Urban Development
each year):
|
County Of New home
|
1-person
household
|
2-person
household
|
3-person
household
|
4-person
household
|
5-person
household
|
6-person
household
|
7-person
household
|
8-person
household
|
|
Cerro Gordo
|
$44,400
|
$50,800
|
$57,100
|
$63,400
|
$68,500
|
$73,600
|
$78,700
|
$83,700
|
|
Floyd
|
$41,600
|
$47,500
|
$53,400
|
$59,300
|
$64,100
|
$68,800
|
$73,600
|
$78,300
|
|
Franklin
|
$41,600
|
$47,500
|
$53,400
|
$59,300
|
$64,100
|
$68,800
|
$73,600
|
$78,300
|
|
Hancock
|
$42,300
|
$48,400
|
$54,400
|
$60,400
|
$65,300
|
$70,100
|
$74,900
|
$79,800
|
|
Kossuth
|
$43,900
|
$50,200
|
$56,500
|
$62,700
|
$67,800
|
$72,800
|
$77,800
|
$82,800
|
|
Mitchell
|
$43,900
|
$50,200
|
$56,500
|
$62,700
|
$67,800
|
$72,800
|
$77,800
|
$82,800
|
|
Winnebago
|
$41,600
|
$47,500
|
$53,400
|
$59,300
|
$64,100
|
$68,800
|
$73,600
|
$78,300
|
|
Worth
|
$43,300
|
$49,500
|
$55,700
|
$61,800
|
$66,800
|
$71,700
|
$76,700
|
$81,600
|
3. 50% of the homes in the program must be sold
to households with incomes
less than 80% of the above figures.
Therefore, priority may be given to applicants
below 80%.
4. You MUST obtain your home loan from a lender
that has been approved for the program. Approved
banks include: North Iowa Community Credit
Union, Northwood State Bank, Manufacturers State
Bank (MBT), Liberty Bank, St. Ansgar State Bank,
First Citizens National Bank, Cresco Union
Savings Bank (CUSB), Home Trust & Savings
Bank, First Security, Clear Lake Bank &
Trust Co., and Habitat For Humanity. The home
loan obtained must be at least a 15-year,
fixed-rate fully amortized loan with early
pay-off allowed.
5. You must be prepared to close on the home at
the time required by the seller after issuance
of a certificate of occupancy.
6. If you are approved for the program and agree
to purchase one of the participating properties,
the program will pay 25% of the purchase price
of the home at the closing. You will need to pay
the closing costs.
7. The assistance will be paid in the form of a
5-year forgivable loan, and a lien will be
placed on the property. The lien will provide
that 20% of the original loan balance will be
forgiven each year for 5 years. After 5 years,
the loan is fully forgiven, and the lien can be
removed from the property. You may sell the home
during the 5-year period, but the remaining
balance of the loan must be repaid to NIACOG.
8. The home must be your primary residence
during the five-year period.
9. Assistance under this program will not be
allowed to be combined with any Federal
Jumpstart Homebuyer Assistance or State
Jumpstart Down Payment Assistance on the same
dwelling unit or person/household served.
I’M INTERESTED. WHAT DO I DO NEXT?
1. First, you will need to
submit a Homebuyer Assistance Application Form
including all attachments listed in the
application, such as a copy of your most recent
tax return, basic financial information, and a
copy of a loan preapproval letter from an
approved bank. Approved banks include: North
Iowa Community Credit Union, Northwood State
Bank, MBT, Liberty Bank, St. Ansgar State Bank,
First Citizens National Bank, CUSB, Home Trust
& Savings Bank, First Security, Clear Lake
Bank & Trust Co., and Habitat For Humanity.
2. NIACOG will verify your eligibility and
income based on information submitted with your
application, and if you are not eligible you
will be notified immediately. 3. Information
about the homes can be obtained from the
participating builders or from NIACOG. Please
refer here or the
link below for floor plans and profiles.
HOW WILL HOMEBUYERS BE SELECTED?
1. Applications will be prioritized according
to the following criteria:
· Applicants with incomes under 80% will
be a priority. (The Iowa Department of Economic
Development’s program rules require that 50% of
the homes must be sold to households under 80%
of area median income.)
· Applicants who are ready to proceed
without contingencies will be a secondary
priority.
· After the above criteria are
considered, applicants who provide fully
completed applications will be addressed on a
first-come first-served basis.
2. Income will be verified through tax and
income documentation and employment verification
to determine eligibility.
DOWNLOADS FOR BUILDERS
Builder’s Proposal Form ( Word)
| ( PDF)
Green Criteria Checklists ( Word)
| ( PDF)
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