Tips for First-Time Homebuyers in Iowa
Why It’s a Great Time to Be an Iowa Homebuyer
It’s a great time to buy a home in Iowa. More homes are being bought and sold, and the rates for being a first-time homebuyer are strong. In absolute terms, Iowa has the 7th most affordable housing market in the United States when factoring only the cost of the mortgage, the 11th most competitive in property taxes, and the 9th most affordable relative to what residents earn. November 2024 saw a 5.3% jump in property listings compared to November 2023.
2,911 homes went on the market in November 2024 compared to the 2,677 homes in November 2023 – an increase of 8.7%. For a new homebuyer, that means the supply is increasing and your chances of landing an excellent first home are improving. According to estimates, Iowa is on track to close the housing shortage in five years. If you’re ready to take your first steps, read on.
What Programs and Incentives Exist for a First-Time Homebuyer in Iowa?
Approved lenders in Iowa can work with the Iowa Finance Authority (IFA) to offer loans and extend programs for prospective homebuyers in the state. Programs such as:
•Homes for Iowans. This is an assistance program that provides a second loan with no monthly payments. It offers eligible borrowers up to 5% of the final sales price of a home. This amount can then be used as a down payment or on closing costs for a home.
•Mortgage Credit Certificate Program (MCC). Iowa offers the MCC program, which is a first-time homebuyer tax credit based on the amount of mortgage interest you’ve paid.
•FirstHome. FirstHome a down payment assistance program for first-time homebuyers available as a grant or a second loan. The grant amount is $2,500; the loan offers up to 5% of the home’s sale price.
While these various programs and initiatives offer different rates and incentives and varied eligibility requirements, all are potentially valuable to someone looking to buy their first home and are worth investigating as options while you pursue your homeowner dreams.
How a Strong Bank Can Help
The best way to buy the perfect home is with help from the perfect bank. A great bank not only lends you the money and manages the mortgage for your first home – it helps you on your financial journey. It’s not enough to set it and forget it. We believe in strong values and accountability for guiding a good financial decision.
Our new Home Loan Officer, Lindsay Worth, is excited to work with you every step of the way. She’ll provide:
•Valuable advice and tips on the homebuying process
•Help you negotiate the best mortgage program terms
•Track deadlines and closing time
•Provide a breakdown of your loan along with fee listings
•Vet all information in your loan application.
It can be a lot of work to navigate the homebuying process, especially as a first timer. For Lindsay, the journey is the reward, and your journey to your first home should be special, seamless, and memorable.