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. Funding comes from HUD HOME / CDBG (HOME assistance per 24 CFR 92.254(a)).

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 homebuyers 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.

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.

Homebuyer Assistance Program (City of Waterloo) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: 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). On credit, the program states: Must demonstrate a credit history of responsible borrowing and repayment (no numeric minimum published). A homebuyer education course is required, through HUD-approved counseling agency; first-time homebuyer education class (online via Horizons / Family Management). Residency requirement: Property within Waterloo city limits on City water and sewer. 0% deferred forgivable 2nd mortgage forgiven over a 5-15 year Period of Affordability (scaled to amount).

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.

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.

Homebuyer Assistance Program (City of Waterloo) serves homebuyers purchasing in Waterloo, Iowa.

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