FHLB Des Moines Home$tart Down Payment Grant

What is FHLB Des Moines Home$tart Down Payment Grant?

FHLB Des Moines Home$tart Down Payment Grant is a grant for homebuyers in Iowa, administered by Federal Home Loan Bank of Des Moines (delivered via member financial institutions).

• Home$tart is a down payment and closing cost assistance grant of $15,000 for qualifying first-time homebuyers earning up to 80% AMI, delivered through FHLB Des Moines member banks. Secured by a self-extinguishing 5-year deed restriction; fully forgiven after 5 years of ownership.
• Up to $15,000 grant for down payment and closing costs.
• No repayment if owned 5+ years.
• Layerable with other DPA.
• No neighborhood restrictions.
• Funding comes from FHLB Des Moines Affordable Housing Program (10% of net income).

How much assistance does it provide?

FHLB Des Moines Home$tart Down Payment Grant offers up to $15,000 in assistance.

• Buyer contribution: Must have a signed Purchase and Sale Agreement to enroll; must qualify for mortgage financing with lender.
• The program can be combined with Other down payment products including NAHI.
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Des Moines (delivered via member financial institutions) determines any individual award.

Do you have to pay it back?

FHLB Des Moines Home$tart Down Payment Grant is structured as a grant, so it is not repaid.

• Repayment is triggered by Sale of home within 5 years (prorated repayment from sale proceeds).
• The assistance is recorded in Secured via 5-year deed restriction/lease addendum; may be in any recording position position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

FHLB Des Moines Home$tart Down Payment Grant is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

FHLB Des Moines Home$tart Down Payment Grant limits household income to 80% of the area median income, which varies by county and household size.

• At or below 80% of area median income based on household size and state/county; includes income of all current and intended household members; calculated as of enrollment date.
• 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?

FHLB Des Moines Home$tart Down Payment Grant can be used for Single Family, Condo, Manufactured, 2-4 Unit, and Community Land Trust.

• New construction is not eligible.
• Manufactured homes are eligible.

Where does it apply?

FHLB Des Moines Home$tart Down Payment Grant serves buyers purchasing anywhere in Iowa.

How do you apply?

Applications for FHLB Des Moines Home$tart Down Payment Grant go through Federal Home Loan Bank of Des Moines (delivered via member financial institutions), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Homebuyer education class required prior to closing (up to $250 of grant may cover counseling/education costs).

2. 2

   Contact Federal Home Loan Bank of Des Moines (delivered via member financial institutions) to reserve funds

   Funds are reserved through First-come, first-served via DP Online (eAdvantage); reservation must be submitted prior to closing, and are subject to availability.

3. 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.