City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa)

What is City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa)?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) is a grant for homebuyers in Ames, Iowa, administered by City of Ames Department of Planning and Housing.

• A Community Development Block Grant (CDBG)-funded program for low- and moderate-income first-time homebuyer households, providing down payment and closing cost assistance toward the purchase of a newly constructed home. Assistance is limited to the Baker Housing Subdivision within the Ames city limits and is delivered in partnership with Habitat for Humanity of Central Iowa, which serves as the participating mortgage lender. The amount of additional down payment/closing cost assistance is determined through the Habitat mortgage loan program. Subject to availability of CDBG funds and HUD program guidelines.
• Down payment assistance.
• Closing cost assistance.
• Paired with Habitat for Humanity affordable mortgage.
• New construction in Baker Subdivision.
• Funding comes from HUD Community Development Block Grant (CDBG).

Do you have to pay it back?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) is structured as a grant, so it is not repaid.

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) limits household income to 80% of the area median income, which varies by county and household size.

• Total gross household income must not exceed 80% of the Ames MSA limit by household size (effective June 15, 2023, subject to change): 1=$59,600; 2=$68,100; 3=$76,600; 4=$85,100; 5=$91,950; 6=$98,750; 7=$105,550; 8=$112,350.
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) can be used for Single Family (newly constructed).

• New construction is eligible.

Where does it apply?

City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) serves buyers purchasing in Ames, Iowa.

• The program targets specific areas: Baker Housing Subdivision, Ames.
• Targeted neighborhoods: Baker Housing Subdivision.

How do you apply?

Applications for City of Ames CDBG Homebuyer Assistance Program (with Habitat for Humanity of Central Iowa) go through City of Ames Department of Planning and Housing, which publishes the current terms and the application steps on its own site.

1. 1

   Contact City of Ames Department of Planning and Housing to reserve funds

   Funds are reserved through First-come, first-served based on date/time complete application received, and are subject to availability.

2. 2

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.