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Homebuyer Assistance Program (City of Waterloo)

City of Waterloo Community Development · Waterloo, Iowa

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See what you qualify forOfficial program site →
Assistance

$25,000

The maximum the program publishes — not an offer

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 once the program's conditions are met

What is Homebuyer Assistance Program (City of Waterloo)?

Homebuyer Assistance Program (City of Waterloo) is a forgivable loan for homebuyers in Waterloo, Iowa, administered by City of Waterloo Community Development.

  • The City of Waterloo Community Development Homebuyer Assistance Program provides up to $25,000 in down payment and closing cost assistance (after seller concessions and lender credits) to low-to-moderate-income first-time homebuyers purchasing within Waterloo city limits. Assistance is a 0% interest deferred forgivable loan secured by a second-position mortgage, forgiven over a 5-to-15-year Period of Affordability. Funded with HUD HOME/CDBG dollars on a first-come, first-served basis; borrowers contribute at least $1,000.
  • Up to $25,000 in DPA/closing cost assistance.
  • 0% interest, no monthly payments.
  • Forgivable over the affordability period.
  • First-come, first-served.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD HOME / CDBG (HOME assistance per 24 CFR 92.254(a)).

How much assistance does it provide?

Homebuyer Assistance Program (City of Waterloo) offers up to $25,000 in assistance.

  • Award tiers: Period of Affordability scales 5-15 years with amount of assistance.
  • The program asks buyers to contribute $1,000 minimum.
  • The program can be combined with May be layered with first mortgage; seller concessions and lender credits reduce assistance.
  • Amounts are the program's published maximums, not an offer — City of Waterloo Community Development determines any individual award.

Do you have to pay it back?

Homebuyer Assistance Program (City of Waterloo) is a forgivable loan, so the balance is forgiven once the program's conditions are met.

  • Repayment is triggered by Repayment due upon sale, refinance, transfer, or failure to occupy as principal residence during the 5-to-15-year Period of Affordability; surviving co-borrower may assume the loan.
  • The assistance is recorded in Second (no lower than third) 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?

Homebuyer Assistance Program (City of Waterloo) 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: Displaced homemakers and single parents who only owned with a former spouse may qualify; first-time = not owned a home in prior 3 years (24 CFR 92.2).
  • The home is occupied as a primary residence
  • On credit: Must demonstrate a credit history of responsible borrowing and repayment (no numeric minimum published).
  • A completed homebuyer education course, through HUD-approved counseling agency; first-time homebuyer education class (online via Horizons / Family Management).
  • Residency: Property within Waterloo city limits on City water and sewer.
  • DRAFT (dpa-gap-finder 2026-06-10): pending review. 0% deferred forgivable 2nd mortgage forgiven over a 5-15 year Period of Affordability (scaled to amount). UNCONFIRMED: numeric minimum credit score; annual funding cap; assistance amount determined by need (max $25,000).

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?

Homebuyer Assistance Program (City of Waterloo) limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at/below 80% AMI for Waterloo/Cedar Falls MSA; effective 6/1/2026: 4-person $75,300 (1p $52,750 ... 8p $99,400).
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • 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?

Homebuyer Assistance Program (City of Waterloo) caps the purchase price at $219,000.

  • Eligible property types include Single-family (1-unit), Condominium, and Manufactured home on permanent foundation on owned land.
  • New construction is eligible.
  • Manufactured homes are eligible.

Where does it apply?

Homebuyer Assistance Program (City of Waterloo) is a federal program, so it is not limited to Iowa.

How do you apply?

Applications for Homebuyer Assistance Program (City of Waterloo) go through City of Waterloo Community Development, 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 counseling agency; first-time homebuyer education class (online via Horizons / Family Management)..

  2. Contact City of Waterloo Community Development to reserve funds

    Funds are reserved through First-come, first-served., 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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