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First Time Home Buyer Program
Through the HOME Program
The purpose of this program is to increase the overall
homeownership rate, create greater opportunity for
homeownership among lower income and underserved households,
and to revitalize and stabilize communities. 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 homebuyer.
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 Homebuyer Program please
contact our office.
Applicant Eligibility
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- 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 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.
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- Eligible Applicant(s) must provide a minimum 1% down
payment, of which can not 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
through Horizons.
- Applicant is responsible for obtaining their own
mortgage financing.
- Eligible participants must have gross annual incomes
at or below 80 percent of the median income for the City
of Cedar Rapids adjusted for household size (see income
table) Household incomes must include all forms of
income from those 18 or older who reside or will reside
in the home.
First Time Homebuyer Program Application.doc
First
Time Homebuyer Program Brochure.pdf |
INCOME ELIGIBILITY FOR
FIRST TIME HOMEBUYER ASSISTANCE |
| Family size |
71% - 80% MEDIAN INCOME |
| 1 |
$ 37,850.00 |
| 2 |
$ 43,300.00 |
| 3 |
$ 48,700.00 |
| 4 |
$ 54,100.00 |
| 5 |
$ 58,450.00 |
| 6 |
$ 62,750.00 |
| 7 |
$ 67,100.00 |
| 8 |
$ 71,400.00 |
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Other Requirements
Selection of a House
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The house must be
located within the city limits.
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The house must be
owner-occupied or vacant.
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The house
cannot be located in the 100 year floodplain.
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The house must
meet minimum Housing Quality Standards inspection
performed by staff.
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Terms
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The City's 0% loan
is a deferred, shared appreciation, 5 year loan
secured by a Lien and agreement for covenants and
restrictions.
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No payments are
required as long as the home remains the primary
residence of the qualified buyer.
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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 form single family
residential.
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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).
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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.
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The City of Cedar
Rapids staff will monitor annually to insure the
home has remained the program participant's primary
residence.
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Lien Recapture
Schedule |
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Year |
% Due |
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1 |
100% |
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2 |
80% |
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3 |
60% |
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4 |
40% |
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5 |
20% |
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6+ |
0% |
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