The City of Cedar Rapids offers individuals down payment assistance in the form of the First Time Home Buyer Program. Funds are available on a first come, first served basis, and applications are reviewed in order. 

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Cedar Rapids First Time Home Buyer Program

Financial Assistance for Homebuyers in Iowa

The City of Cedar Rapids offers individuals down payment assistance in the form of the First Time Home Buyer Program. Funds are available on a first come, first served basis, and applications are reviewed in order. 

The First Time Home Buyer (FTHB) Program provides eligible potential homebuyers with $1,000 to $5,000 to help cover the down payment and closing costs associated with the purchase of a home. This assistance comes in the form of a 5-year, forgivable loan.

Eligibility Requirements
  • Must be a first-time homebuyer. Any applicant who has owned a home in the previous three years is not eligible.
  • Must purchase an eligible property. Any home purchased must be within the City of Cedar Rapids limits, but any located in the 100-year flood plain are not eligible. Homes must be owner-occupied or vacant (not a current rental property with tenants). Single-family dwelling and condo units are eligible (mobile home purchases are not eligible). Homes will be inspected by City staff and must comply with Housing Quality Standards (based on health and safety requirements). The purchase price of homes may not exceed $135,000 for a single family dwelling.
  • Must secure an acceptable mortgage. All applicants must secure “Qualified Mortgages” and meet additional requirements, including no non-occupying co-signers or co-borrowers, and ARM’s of at least 10 years.
  • Must meet income and asset requirements. Households must meet maximum housing and debt to income ratios of 31 percent and 43 percent respectively. An applicant’s assets (checking, savings, etc.) must not exceed $15,000 non-retirement funds. Based on those assets, applicants will be required to contribute between one and three percent of the sales price towards the down payment.
Income Limits
1 person household: $44,750
2 person household: $51,150
3 person household: $57,550
4 person household: $63,900
5 person household: $69,050
6 person household: $74,150
7 person household: $79,250 

Note: these figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.

Additionally, it is mandatory that all applicants attend and complete an in-person or online, HUD-approved homebuyer education course prior to applying for down payment assistance. It must specifically state that both the course and agency are “HUD-approved” in order to meet the requirements of the First Time Home Buyer program.

Down Payment Grants in Iowa

The City of Cedar Rapids offers individuals down payment assistance in the form of the First Time Home Buyer Program. Funds are available on a first come, first served basis, and applications are reviewed in order. 

This program provides long-term, zero-interest loans of up to $5,000 to help cover down payment and closing costs associated with purchasing a new home. In the case of household income less than 30 percent of the area median income (AMI), individuals may also receive up to $25,000.

FHA.com Reviews

FHA.com is a one-stop resource for homebuyers who want to make the best decisions when it comes to their mortgage. With our detailed, mobile-friendly site, individuals can access information about different FHA products, the latest loan limits, and numerous other resources to make their homebuying experience easier. Take a look at some of the reviews from other FHA.com visitors!