Down Payment Assistance Program

Down Payment Assistance Program is a forgivable loan for homebuyers in Iowa City, Iowa. Iowa City DPA — up to $14,999 forgivable 5-year 2nd for FTHB at ~120% AMI in city limits. $285,000 max purchase price. Iowa City Down Payment Assistance Program provides up to $14,999 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. Iowa City city limits only. Funding comes from Local, HOME, and CDBG.

Down Payment Assistance Program 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 Program 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: Per first-mortgage lender overlays. A homebuyer education course is required, through HUD-approved homebuyer education through Horizons or other City-approved counseling agencies; required prior to closing. Residency requirement: Property must be located within Iowa City 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 ~120% AMI for Johnson County (~$66,200-$109,700 by household size). Maximum purchase price $285,000. Property must be in Iowa City city limits and primary residence. HUD-approved homebuyer education required. 5-year owner-occupancy / forgiveness covenant.

Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. ~120% AMI Johnson County / Iowa City MSA — typically $66,200 (1 person) up to $109,700 (8+ person) by household size. 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 Program caps the purchase price at $285,000. Eligible property types include Single-family detached, condominium, townhouse. New construction is eligible. Manufactured homes are not eligible.

Down Payment Assistance Program 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 Program serves homebuyers purchasing in Iowa City, Iowa.

Applications for Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application through Iowa City Neighborhood Services; 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.