First Time Home Buyers

Owning a home for the first time may not be beyond your reach. Iowa has some programs that could help you buy your first home. Choosing to buy your first home in Iowa is wise because Iowa offers first time home buyers some of the best home prices in the country. Iowa’s median home price is $83,000. That is why Iowa has one of the highest home ownership rates in the nation. Iowa is familiar with helping firsttimehomepeople buy their first home. This makes Iowa the ideal place to buy your first home.
First Time Home Buyer Program in Iowa

The first time home buyers program being offered by the Iowa Finance authority provides state sponsored, affordable, fixed rate mortgages with local lenders. Repeat home buyers purchasing a home in a federally declared Targeted Area may also use these loans. The Iowa Finance Authority web site has an Eligibility Quick Check tool to see if you qualify. They also have list of lenders that can help you get these loans.
The Federal Housing Administration (FHA) Loan Program in Iowa

Iowa’s FHA loans are provided to buyers who do not have a high income or a lot of cash. The FHA limits the amount of mortgage you can receive. For a FHA loan, you do not need to have the highest credit score or a large down payment. You will need to have a reasonable debt to income ratio. Generally, you must have a ratio better than 29/41; some programs will allow you to have up to 55 percent.

Before you begin the process of applying for your home loan:

  •     Determine what kind of home you need.
  •     Use a mortgage calculator to set up your monthly mortgage payments.
  •     Do you have the funds necessary to pay the mortgage for that type of home?
  •     At this point, you need to do a credit check to make sure that your credit is good enough to qualify for the size loan you need.
  •     Start talking to lenders. It is essential that you shop around and compare the interest rates.
  •     Before you begin house hunting, get pre-approved for your mortgage.

New Program Being Offered by The Iowa Finance Authoritymoney

Dave Jamison, who is the Director of The Iowa Finance Authority, states that a program is being implemented that offers new homeowners a tax credit. If you meet the guidelines set forth by the program, you will receive a Mortgage Credit Certificate. This certificate will cut your federal income tax liability as much as $2,000 every year for the life of your mortgage. Each Iowa County has different eligibility guidelines, such as in Polk County a couple earning $75,000 a year may qualify for a tax credit on a home that is worth $250,000 or less.