Homes for Iowans 2nd Loan

Homes for Iowans 2nd Loan is a deferred second loan for homebuyers in Statewide, Iowa. Homes for Iowans 2nd Loan is IFA's repeat-buyer-eligible DPA — a $5,000 deferred 0% interest non-forgivable 2nd mortgage paired with the HFI first mortgage (30-year fixed FHA/VA/USDA-RD/Conventional). NOT FTHB-restricted. Single statewide income ($173,460) and purchase-price ($665,000) tier. Homes for Iowans (HFI) 2nd Loan provides up to $5,000 in down payment and closing cost assistance, structured as a 0% interest non-forgivable second mortgage with NO monthly payments. Balance is deferred until sale, refinance, payoff, or transfer of title (or end of first-mortgage term). Paired with the IFA Homes for Iowans 30-year fixed first mortgage. NO first-time-homebuyer requirement — open to repeat buyers as well as first-time buyers. Single statewide income/purchase-price tier (~$173,460 / $665,000). Funding comes from State and HFA.

Homes for Iowans 2nd Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Deferred for life of first mortgage and balance due on sale, refinance, payoff, transfer of title, or end of mortgage term. 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.

Homes for Iowans 2nd Loan is open to homebuyers who will live in the home as their primary residence. On credit, the program states: 640 minimum FICO across all eligible loan products. A homebuyer education course is required, through IFA-approved homebuyer education through Framework, Money Smart, or HUD-approved housing counseling agency; required for all HFI borrowers prior to closing. Residency requirement: Property must be located in Iowa and used as borrower's primary residence. Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays. NO first-time-homebuyer requirement (HFI is repeat-buyer eligible). Minimum 640 FICO. Maximum 50% DTI. Property must be primary residence. Household income at or below $173,460 (single statewide tier). Purchase price at or below $665,000. Must use IFA-approved Participating Lender. Homebuyer education required. Cannot be combined with FirstHome programs on the same transaction.

Homes for Iowans 2nd Loan limits household income to $173,460. 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.

Homes for Iowans 2nd Loan caps the purchase price at $665,000. Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home (per first-mortgage overlays), 1-2 unit. New construction is eligible. Manufactured homes are eligible.

Homes for Iowans 2nd Loan 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.

Homes for Iowans 2nd Loan serves homebuyers purchasing in Statewide, Iowa.

Applications for Homes for Iowans 2nd Loan go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through IFA-approved lender reserves funds via IFA's Online Lender Portal at time of loan reservation; subject to program funding availability. 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.