The Iowa Finance Authority (IFA) offers loan funds for use by qualifying entities to rehabilitate single-family homes in their communities. The goal of this initiative - the OurHome Rehabilitation Program - is to provide a source of funds to local entities for rehabilitation of single-family homes. Qualifying entities may apply for funds by demonstrating core competencies in three areas: (1) rehabilitation construction oversight, (2) management of loan funds, and (3) assistance for lower income households in attaining or maintaining home ownership. Preference is given to organizations furthering the mission of IFA, with special priority given to those applicants serving households at or below 80 percent of the area median income. Applications are accepted on an ongoing basis.

IFA provides funding in the form of a 3 percent low-interest loan. Qualifying applicants may be non-profit or for-profit companies, city housing departments, regional Councils of Governments and similar organizations. Applications are evaluated on the basis of the three core competencies mentioned above.

IFA encourages the awareness of life safety issues, the use of environmentally friendly building products, energy efficiency, universal design and overall esthetics. Therefore, preference is given for demonstrable inclusion of such aspects in the application. IFA also encourages changes to the structure that will permit otherwise able people with disabilities to purchase  homes or to remain in their homes.

IFA promotes homeownership to Iowans at all income levels. Of particular importance are potential borrowers who are at or below 80 percent of the Area Medium Income, who are female-headed households, who are immigrants and/or live in underserved geographic areas of the state. IFA gives preference to applications that particularly address the needs of those populations.

IFA provides technical assistance and consultation to potential loan applicants on an as-needed basis. 

Generally, IFA allows the loan recipient to determine program parameters, which are described in the application. IFA allows the loan recipients to determine the amount to be funded for each unit, up to $25,000. IFA recommends, but does not require, that the amount funded comprise no more than 30 percent of the appraised value of the property after rehabilitation. IFA recommends, but does not require, that the majority of the funds be limited for use by those whose incomes are at or below 80 percent of the greater of the area or statewide median income. The balance of IFA loan funds must be used by people whose incomes are at or below 115 percent of the greater of the area or statewide median income.

The borrowing entity may use 5 percent of the loan amount, up to a total of $10,000, for administrative fees.

The borrowing entity may arrange a repayment schedule with IFA that best suits its needs - monthly, quarterly or annually - as long as at least one annual payment is made. Interest only payments may be allowed for the first two years.

Loan recipients may draw down the loan funds as needed, with interest only payments being made until the loan has been fully advanced. After the loan has been fully advanced, the principal amortization will commence. A standard Note for an unsecured loan is signed by the applicant organization, together with a loan agreement and other necessary documentation.

The terms of the loan are as follows: Interest of 3 percent per year is charged for the use of the funds, repayable in equal monthly payments amortized over a period of 10 years, or as agreed to by IFA. IFA will not retain loan reserves from the total loan amount, but qualifying entities are encouraged to maintain reserves equal to three months of the loan payments in case of default by individual borrowers.

Loan recipients are required to provide quarterly reporting on the use of the funds, at loan level detail, including but not limited to the following : the number of loans and dollars spent; the communities served; the demographics of borrowers by income, race and ethnicity, per the Rehabilitation Loan Activity Status Report.

Loan recipients must complete rehabilitation to conform to the Iowa Minimum Standards.

Loan recipients are expected to maintain adequate documentation and to make complete loan files available for sample compliance checks as requested by IFA.