Johnston, IA
Down Payment Assistance Loans

Down Payment Assistance Programs (DPA) in Johnston, IA

You want to buy a home. You are tired of renting and want all the advantages that go along with homeownership. Alas, you are probably thinking you need thousands of dollars for a down payment and you just do not have it.

There are many diverse programs out there that will help you with a down payment to land the home of your dreams. Down payment assistance programs in Johnston IA were created and sponsored by federal, state and local governments, as well as by private nonprofit organizations. There are loans, no-interest and forgivable loans, as well as grants to would-be homeowners.

Keep in mind, these programs are not for everyone. If you are not able to obtain preapproval for a mortgage, chances are you will not find your way to a down payment assistance program. On the other hand, if you have steady employment, fair to good credit, and good income monthly, the only thing holding you back could be the down payment.

Our Johnston, IA Down Payment Assistance Programs Can Help

If you do not have thousands saved for a down payment, you are not alone. Many would-be homeowners find themselves short on cash for home down payments. You will need money as a down payment, but you may be surprised at how little it could be. Our DPA programs can help you.

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Johnston, IA home down payment assistance programs offer help to homebuyers. These programs will come up with some, or all, the down payment required. In some cases, you can even have your closing costs included.

Down payment assistance programs come in three major types:

  • Interest-bearing loans, set up as a second mortgage, which the homebuyer must repay.
  • Interest-free loans, which must be repaid, but at no additional cost to the homebuyer.
  • Grants, which are funds the homebuyer does not have to repay.

As with all down payment assistance loans in the Johnston area, there are limits as to how much money you will be given. Homebuyers will usually still have to contribute something towards the down payment amount.

Iowa Down Payment Assistance Programs

The Iowa Finance Authority (IFA) offers home loan programs. There are requirements for each one and many offer conventional, FHA, VA, and USDA loans. All IFA assistance programs require:

  • Being an Iowa resident.
  • Working with a particular lender.
  • Looking at eligible property types for your primary residence.

IFA First Home Program

The First Home Program is for first-time homebuyers. If you have not owned a home in the past three years, you are considered a first-time homebuyer. This type of Johnston, IA DPA loan offers the homebuyer up to $2,500 for down payments through a grant and $5,000 towards your down payment with a second mortgage. To qualify for First Home assistance, you must be a first-time homebuyer with a credit score of at least 640 and a debt-to-income ratio of 45% maximum.

Homes for Iowans DPA

This down payment assistance program is similar to First Home and offers assistance in the form of a grant or a second mortgage. You can receive $2,500 towards your down payment with a grant and $5,000 or up to 5% of the home’s purchase price, with a second mortgage. Homes for Iowans removes any and all requirements for real estate history. This means anyone can apply as long as the purchase is for a primary residence.

IFA Military Homeownership Assistance Program

This program can be paired with either a First Home or a Homes for Iowans mortgage to help eligible service members, veterans and surviving spouses with all down payment and closing cost amounts. The program offers a grant of $5,000. Requirements include:

  • You must be approved before closing.
  • You must work with an IFA-approved lender.
  • Must be buying a single-family home, condominium, townhome, or four-unit home (as long as one of these units is your primary residence).

First-Time Homebuyer Savings Account

First-Time Homebuyer Savings Account (FTHSA) is a bank account set up for Iowans to save for their first home. You can contribute up to $2,000 tax-free each year and up to a lifetime maximum of $20,000 tax-free. Johnston, IA down payment assistance programs such as these go a long way to helping you into your first home.

Work With Our Johnston, IA Home Loan Down Payment Assistance Programs

At Compass Mortgage, we go above and beyond for all our clients. We know how hard it is out there, and our goal is to see each family achieve their goal of homeownership, because everyone has value.

Being a homeowner is one of life’s best choices. Do not let it pass you by because you cannot qualify. We make homeownership happen every day. Johnston, IA DPA programs can help you, too. Contact us today.

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