Military Homeownership Program
Information for Lenders & Real Estate Agents
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NOTICE: As of November 15, 2011 the Iowa Finance Authority is no longer accepting Military Homeownership Assistance program grant requests, due to the funding level. Grants that have been previously approved by the Iowa Finance Authority will continue to be funded, however complete reimbursement packages are due within 30 days of loan close. If not received in that period, the grant may be reimbursed only if funding remains available. If further funding is received, the Iowa Finance Authority will immediately notify lenders of the availability. |
Benefits
This program provides eligible service members and veterans with a $5,000 grant that may be used toward down payment and closing cost assistance on a qualifying home purchase. The financing option of this program is restricted to IFA’s mortgage programs, for eligible home buyers or another fixed rate, fully amortizing mortgage that is lower cost (APR) than IFA’s mortgage program.
Eligibility
- Have served 90 days active duty since September 11, 2001. Active duty need not be consecutive; it may be cumulative. Inactive Duty Training, Annual Training and Active Duty for Training may not count toward active duty
- Is a federal status injured service person having served in active duty since September 11, 2001; or
- Is a surviving spouse of said eligible service person, all who have served honorably.
AND
- Receives prior approval before closing on a qualified home.
- Utilizes an IFA Participating or Facilitating (link to Facilitating Lender page) Lender (if financing the purchase).
- Uses IFA’s mortgage programs, unless a lower cost, fixed rate, fully amortizing option is available if eligible. If not eligible for 30 year fixed rate financing, uses a permanent mortgage loan for financing the purchase.
- The home must be located in the state of Iowa.
- The home must be acquired for the borrower’s primary occupancy residence
The home must be one of the following:
- Single-family residences (including “stick-built” homes, modular homes, or manufactured homes, provided the home is attached to a permanent foundation and is taxed as real estate)
- Condominiums
- Townhomes
- Duplexes, if one of the units will be the primary residence of the service member
- Completion of acquisition/renovation of qualifying home. Refinancing interim mortgage financing of not more than 24 months (at time of new mortgage closing) used for the purpose to construct the residence or renovation of an existing home that has not been occupied by the MHOA applicant, spouse or fiancé. Remember prior approval to completion and occupancy is required.
Application Process
Typical forms usually needed to establish military service include a copy of a valid DD Form 214 (Member 4 Form or later), four months of leave and earnings statements or other documentation that may be required, and government issued photo ID.
More Information
Funding for this program is provided by state appropriation and is subject to funding availability. Assistance is awarded in the order in which completed applications are received. Assistance awarded pursuant to the program is personal to their recipients and may not be assigned. An eligible service member shall receive assistance only once, and only one award per home purchase.
Resources
IFA homeownership programs flyer
Contact Us
Email
800.432.7230
