Iowa Valley Habitat for Humanity Homeownership Program

What is Iowa Valley Habitat for Humanity Homeownership Program?

Iowa Valley Habitat for Humanity Homeownership Program is down payment assistance for homebuyers in Iowa City, Iowa, administered by Iowa Valley Habitat for Humanity.

• Iowa Valley Habitat for Humanity builds and renovates affordable homes and sells them to income-qualified buyers with an affordable mortgage. Habitat secures financing through a partnership with local lenders and structures the payment so the homeowner spends no more than 30% of monthly income on housing costs. In lieu of a traditional down payment, each adult in the approved household contributes at least 250 hours of sweat equity and completes required education. Mortgage length is determined by income and terms are based on the buyer's credit score; no prepayment penalty. Serves Johnson, Cedar, Iowa, and Washington counties (criteria page also lists Louisa).
• Sale of a newly built or renovated home with an affordable mortgage.
• Housing payment capped at no more than 30% of monthly household income.
• 250 hours of sweat equity substitutes for a traditional cash down payment.
• Required financial literacy/homeowner education.

Do you have to pay it back?

Iowa Valley Habitat for Humanity Homeownership Program is down payment assistance and is repaid under the terms set by Iowa Valley Habitat for Humanity.

• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Iowa Valley Habitat for Humanity Homeownership Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Iowa Valley Habitat for Humanity Homeownership Program sets its income limit as follows: Household total gross income must fall within 40-80% of the Area Median Income of the county of residence; limits vary by household size and are published as a table image on the Criteria and Application page (exact dollar figures not machine-readable). All wages and benefits counted (SSI, SSDI, retirement, alimony, VA benefits, child support). HUD-based, subject to change.

• 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?

Iowa Valley Habitat for Humanity Homeownership Program can be used for Single Family.

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

Where does it apply?

Iowa Valley Habitat for Humanity Homeownership Program serves buyers purchasing in Iowa City, Iowa.

How do you apply?

Applications for Iowa Valley Habitat for Humanity Homeownership Program go through Iowa Valley Habitat for Humanity, 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 Horizons, A Family Service Alliance - Financial Wellness Center (HUD-accredited); plus Habitat classes on personal finance and home maintenance.

2. 2

   Contact Iowa Valley Habitat for Humanity to reserve funds

   Funds are reserved through Wait list: applicants contact the office to be added; when a home can be built within 18-24 months the next names are invited to submit a completed application within 30 days, 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.