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Down Payment Assistance

Council Bluffs, Iowa

Last verified
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Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is 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.

Do you have to pay it back?

Down Payment Assistance is forgiven after 5 years, so a buyer 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.

Who qualifies?

Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO
  • A completed homebuyer education course, through HUD-approved homebuyer education; required prior to closing.
  • Residency: 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.

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

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

How do you apply?

Applications for Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through HUD-approved homebuyer education; required prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application through Council Bluffs Community Development; subject to annual allocation., and are subject to availability.

  3. 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.

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