First Time Home Buyer Program 

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Funding Status

Funds are not currently available for this program. Additional funds are not anticipated until fall of 2012.

 

Alternative Funding

As we will not be able to provide assistance to new applicants, we do want to make you aware of other grant opportunities.

  •  The City has the ROOTs program, which provides up to 25% of the purchase price of new construction homes as a forgivable mortgage.  Visit the following site for more information: www.ROOTsinCR.com.
  • The Iowa Finance Authority's FirstHome Program offers a $2,500 down payment assistance grant.  Visit the following site to see the program requirements, participating lenders in Linn County and to find out if you qualify: http://www.iowafinanceauthority.gov/index.cfm?nodeID=15913&audienceID=1.

 

First Time Home Buyer Frequently Asked Questions

For answers to questions frequently asked about the First Time Home Buyer Program click here.

 

 

Program Overview

The purpose of this program is to increase the overall homeownership rate, create greater opportunity for homeownership among lower income and underserved households, and revitalize and stabilize communities, by providing $6,000 in down payment and closing cost assistance. Funds may be used to pay the upfront costs of acquiring a principal residence, but not the entire cost of acquisition, and other reasonable and necessary costs incurred by the home buyer. These other costs may include: private lender origination fees, credit reports, fees for title evidence, fees for recording and filing of legal documents, attorney fees, and private appraisal fees. For more information about the First Time Home Buyer Program please contact our office.

 

Applicant Eligibility

  • Eligible participants must have gross annual incomes at or below 80% of the median income for the City of Cedar Rapids, adjusted for household size (see Program Income Limits). Household incomes must include all forms of income from those 18 or older who reside or will reside in the home.
  • Eligible participants (both applicant and co-applicant) must meet one of the definitions of First Time  Home Buyer described below:
      • Applicant(s) shall not have owned a home within the last three years prior to application of the program; or
      • A displaced homemaker who, while a homemaker, owned a home with his or her spouse or resided in a home owned by the spouse. A displaced homemaker is an adult who has not worked in the labor force for several years, has worked in the home to care for the home and family during that time, and is currently unemployed or underemployed and is having difficulty finding or upgrading employment; or 
      • A single parent who, while married, owned a home with his or her spouse or resided in a home owned by the spouse. A single parent is an individual who is unmarried or legally separated and has one or more minor children for whom the individual has custody or joint custody, or is pregnant.  
  • Eligible Applicants must provide a minimum 1% down payment, which cannot be a loan.
  • Prior to being accepted as a program participant (but not required prior to application for the program), applicant must successfully complete Homebuyer Education.  Contact Horizons for upcoming class dates at (319) 398-3943.
  • Applicants are responsible for obtaining their own mortgage financing.

 

Application Process

Complete a Confidential Application including all supporting documentation and submit to:  Housing Services Office, 1211 6th Street SW.

 

 

Home Requirements

  • The house must be located within the city limits
  • The house must be owner-occupied or vacant - not a current rental.
  • The house cannot be located in the 100 year floodplain.
  • The house must meet minimum Housing Quality Standards inspection performed by staff.

 

Terms

  • The City's 0% loan is a deferred, shared appreciation, 5 year loan secured by a Lien and agreement for covenants and restrictions.
  • No payments are required as long as the home remains the primary residence of the qualified buyer.
  • The City's note becomes due and payable when the homeowner sells the property, rents the property, adds someone to the title, or changes the use from single family residential.
  • The City's note becomes due and payable upon refinance, if the refinance is not approved by the Housing Services or the refinance exceeds the homeowner's equity at the time of the refinance (see payment schedule).
  • The Lien shall be for a term of five years, after which time, all unpaid principal and shared appreciation remaining will be forgiven if all requirements have been satisfied.
  • The City of Cedar Rapids staff will monitor annually to insure the home has remained the program participant's primary residence.