Down Payment Assistance

Down Payment Assistance is a forgivable loan for homebuyers in Council Bluffs, Iowa. Council Bluffs DPA — up to $5,000 forgivable 5-year 2nd for FTHB at 80% AMI in city limits. 640 FICO minimum. City of Council Bluffs Down Payment Assistance provides up to $5,000 in down-payment and closing-cost assistance as a 0% interest forgivable second mortgage. Forgiven over 5 years provided the borrower remains in the home as primary residence. HOME/CDBG-funded. Council Bluffs city limits only. Funding comes from Local, HOME, and CDBG.

Down Payment Assistance is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven over 5 years and full or pro-rata repayment if borrower sells, refinances, or vacates within 5 years. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Down Payment Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: 640 minimum FICO. A homebuyer education course is required, through HUD-approved homebuyer education; required prior to closing. Residency requirement: Property must be located within Council Bluffs city limits and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen or eligible non-citizen per HUD HOME rules. First-time homebuyer required (no homeownership in past 3 years). Household income at or below 80% AMI for Pottawattamie County (~$61,350-$115,650 by household size). Minimum 640 FICO. Property must be in Council Bluffs city limits and primary residence. HUD-approved homebuyer education required. 5-year owner-occupancy / forgiveness covenant.

Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size. 80% AMI Pottawattamie County — typically $61,350 (1 person) up to $115,650 (8+ person), per HUD published 2025/2026 limits. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Down Payment Assistance caps the purchase price as follows: Per HUD HOME 95% area median purchase price; verify with City. Eligible property types include Single-family detached, condominium, townhouse. New construction is eligible. Manufactured homes are not eligible.

Down Payment Assistance names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Down Payment Assistance serves homebuyers purchasing in Council Bluffs, Iowa.

Applications for Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application through Council Bluffs Community Development; subject to annual allocation. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.