Iowa City offers down payment assistance to income eligible home - KWWL - Eastern Iowa Breaking News, Weather, Closings

Iowa City offers down payment assistance to income eligible homebuyers

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IOWA CITY (KWWL) -

Iowa City is offering down payment help for income eligible homebuyers.

The city's Neighborhood and Development Services Department is offering down payment assistance to income eligible homebuyers for homes purchased in the Downtown, Miller-Orchard, Towncrest, Twain and Grant Wood neighborhoods.

The city says the program will provide up to $7,500 as a forgivable loan.

Upon purchase, the homebuyer is also eligible for the CDBG/HOME rehabilitation program. Through the CDBG/HOME program, homeowners may be eligible for up to $24,999 in home improvements, based on funding availability and program rules. Half of the total amount of the home improvements will be forgiven with the balance repaid based on program rules.

To be eligible for the Iowa City Targeted Down Payment Assistance program:

• Your household income must be less than 80 percent of median income based on household size.

• You may not currently own a home and the home purchased must be your primary residence.

• You must obtain a mortgage pre-approval letter from a lending institution that includes the mortgage amount.

• The purchase price of the home may not exceed $200,000.

Program funds are limited and available on a first come, first served basis. Upon being notified of funding approval, applicants have 120 days to enter a city-approved purchase agreement. Applications are not considered complete until all required items are submitted: application, pre-approval letter and a copy of last year's income tax form.

Applications and income information are available at http://www.icgov.org/?id=2420. For more information, contact Lucy Joseph at 319-356-5128 or lucy-joseph@iowa-city.org.

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