Many members of the military (and surviving spouses) planning on buying homes in Iowa know that in certain cases they may still qualify for the Federal Homebuyer's 
tax credit, but few seem to know about Iowa's Military Homeownership Assistance Programwhich offers a $5,000 grant that certain members of the military may use towards down payment and closing costs when they purchase a qualifying property in the State of Iowa. I decided to post this piece about the program after I received a call yesterday from an Iowan on active duty who was interested in buying a home in Des Moines but had not heard about the program. I figured if there was one person that didn't know there must be others!
Iowa's Military Homeownership Assistance Program is offered by the State of Iowa through the Iowa Finance Authorityor IFA for short. IFA's mission is "to finance, administer, advance and preserve affordable housing and to promote community and economic development for Iowans." It is funded through transfer taxes on real estate and serves to benefit homeowners, home buyers, nonprofits and developers.
In order to qualify for Iowa's Military Homeownership Assistance Program an applicant must, according to IFA:
- 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
Further qualification are that an applicant:
- Needs to receive prior approval from IFA
- Needs to use an IFA qualifying lender SEE LIST OF IFA PARTICIPATING LENDERS
- Use one of IFA's loan programs
- Purchase a property in the State of Iowa
- Utilize the home as a primary residence
There are also some stipulations of course of the type of housing. According to IFA they will lend on:
- 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.
If you are a qualifying member of the military thinking about purchasing a home in the Des Moines area, or anywhere in iowa for that matter you owe it to yourself to investigate this program. More Information can be obtained by:
Visiting IFA's website: http://www.iowafinanceauthority.gov
Following this link:
http://www.iowafinanceauthority.gov/en/for_home_buyers/military_homeownership_assistance_program/
Contacting a participating lender: http://www.iowafinanceauthority1.com/SFContactListing.asp
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