I love to help people and this is a great way to get assistance with buying your first home. Here is more information:
The Federal Home Loan Bank of Des Moines (FHLB) is giving grants to home buyers of up to $7,500 towards the purchase of their first home. Throughout 2020 they will be giving grants up to $8,000,000 to many homeowners.
You have to be earning 80% or less of the median income for the area where you are purchasing your first home. This limit is adjusted based off the household size (do you have a spouse, children, etc). You can buy single family residential homes, condos, townhomes, and manufactured homes with this assistance. This money can be used for closing costs, down payments, or even to make repairs on the home.
Finally this money is subject to a five year deed restriction. Meaning that if you live in the home for at least five years, you never have to repay the money. In that first five years it is a sliding scale. That means that if you sell in year one, you would owe more of the money back than if you sell in year four.
I am making this math up: say you sell in year one, so you have to pay 80% back, on a $7,500 grant that means that you would have to pay back $6,000 and $1,500 is forgiven. Year two it would be 60% or pay back $4,500 and $3,000 is forgiven. Year three it would be 40% or pay back $3,000 and $4,500 is forgiven. And so on until year six when you will never have to pay the money back. Also, if you sell the home at a loss, sell to another low to moderate income buyer, or lose your house through foreclosure you can get the balance forgiven by following FHLB’s process.
This could be a great way to start building equity instead of just paying someone else’e mortgage (rent). With how low interest rates are right now you could put yourself into an incredible position for building future equity.
If you want to see my opinion on why you should look at a 15 year mortgage, see my post on What Type of Mortgage do You Have?
If you are interested in this program you can go to the Homestart Homepage right here.
I love doing what I do. I love looking at the market, and I love building relationships with the people that I get to help. Let me know how I can help you. Call me today. You can reach me at 515.639.0047 or RyanLynch@KW.com. I am good at what I do, and I want to help you.
~Ryan Lynch
