Uncategorized January 5, 2024

Are Programs Available For First-Time Buyers?



Are programs available for first-time buyers?

The short answer is yes. I’ve been asked this question quite a few times recently so I figured why not provide you with some great information on the topic. If you already own a home you may be asking your self…“why does this matter to me”?

Well, as home prices continue to climb you as a homeowner are reaping the financial benefits with equity you can use in many ways… cash-out refinance to remodel your home, pay off other debts, buy a new boat (haha). Or do what most people do and utilize your equity to upgrade into a new home. We need a steady flow of new homeowners to buy entry level homes that way those current sellers can upgrade into their next home and so on.

As prices for homes, rent and other common goods continue to climb it puts more and more pressure on first time buyers. Many think they need 10%-20% for down payment before they can even get started. According to the National Association of Realtors (NAR), 38% of first-time homebuyers find saving for a down payment the most challenging step. But the reality is, you probably don’t need to put down as much as you think:



What programs are offered in Des Moines?

The FirstHome program offered by the Iowa Finance Authority is a nice option for the true first time buyer. They offer a 3% down payment option coupled with a $2500 grant and a 2nd loan program of up to 5% of the purchase price that can be used towards down payment and closing costs. They also offer a Military Homeownership Assistance program that provides a $5,000 grant to eligible service members and veterans for down payments and closing costs on qualifying homes.

Another popular option available in the Des Moines area is offered by the Neighborhood Finance Corporation. Eligible home buyers may receive a deferred loan of $10,500 and subsidy (forgivable loan) of up to $2,500 to assist with down payment and/or closing costs on a purchase transaction. This specific option is neighborhood specific so ask me or check out the website for further details. See links below for all specific details and qualifications. If you know anyone who is looking to buy their first home I would love to help, connect us in a group chat via text or email.

Links to these resources

Iowa Finance Authority – https://www.iowafinance.com/homeownership/down-payment-programs/

Neighborhood Finance Corporation – https://neighborhoodfinance.org/

City of West Des Moines ( Valley Junction ) Housing Funds -https://www.wdm.iowa.gov/government/community-economic-development/housing