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First Time Home Buyer Program

Cedar Rapids, Iowa

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Income limit

80% AMI

Of area median income; varies by county and household size

Price cap

$219,000

Highest purchase price the program allows

Repayment

Forgivable

Forgiven after 5 years

What is First Time Home Buyer Program?

First Time Home Buyer Program is a forgivable loan for homebuyers in Cedar Rapids, Iowa.

  • Cedar Rapids First Time Home Buyer Program — HOME/CDBG-funded 0% interest forgivable 2nd mortgage up to $14,999, 5-year forgiveness, for FTHB at 80% AMI in Cedar Rapids city limits. $193,000 max purchase price.
  • Cedar Rapids First Time Home Buyer Program provides up to $14,999 in down-payment and closing-cost assistance as a 0% interest forgivable second mortgage. Forgiven over 5 years (20% per year) provided the borrower remains in the home as primary residence. HOME/CDBG-funded. Cedar Rapids city limits only.
  • Funding comes from Local, HOME, and CDBG.

Do you have to pay it back?

First Time Home Buyer Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

  • Repayment is triggered by Forgiven 20% per year over 5 years and full repayment due 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?

First Time Home Buyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: FTHB rule applies (no exceptions for veterans documented in current City guidance — verify at intake)
  • The home is occupied as a primary residence
  • On credit: Per first-mortgage lender overlays
  • A completed homebuyer education course, through HUD-approved homebuyer education through Horizons, Iowa State University Extension, or other City-approved counseling agencies; required prior to closing.
  • Residency: Property must be located within Cedar Rapids 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 Linn County (~$35,200-$119,000 by household size; verify current limits with City). Maximum purchase price $193,000. Property must be in Cedar Rapids city limits and primary residence. HUD-approved homebuyer education required prior to closing. 5-year owner-occupancy / forgiveness covenant; full repayment owed if borrower sells, refinances out, or vacates within 5 years.

The program excludes

  • Purchases above the $219,000 price cap
  • 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?

First Time Home Buyer Program limits household income to 80% of the area median income, which varies by county and household size.

  • 80% AMI Linn County / Cedar Rapids MSA — typically $35,200 (1 person) up to $119,000 (8+ person) by household size, 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?

First Time Home Buyer Program caps the purchase price at $219,000.

  • Eligible property types include Single-family detached, condominium, townhouse, manufactured home on permanent foundation.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

First Time Home Buyer 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.

Where does it apply?

First Time Home Buyer Program serves buyers purchasing in Cedar Rapids, Iowa.

How do you apply?

Applications for First Time Home Buyer Program 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 through Horizons, Iowa State University Extension, or other City-approved counseling agencies; required prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Application through City of Cedar Rapids Housing Services; subject to annual HOME/CDBG allocation availability., 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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