City of Cedar Rapids Down Payment and Closing Cost Assistance
The City of Cedar Rapids’ First-Time Homebuyer (FTHB) Program provides a $1,000—$5,000 forgivable loan to eligible households to assist with down payment costs. To be eligible, participants must meet four main requirements:
- Be a First-Time Homebuyer
- Be Income Eligible — including income, assets, debt ratio calculations
- Purchase an Eligible Property
- Secure Acceptable Mortgage Financing
Income Eligibility
Income maximums, based on household size, are shown in this chart. Additionally, asset amounts and debt to income calculations must be acceptable. Households must meet maximum housing and debt to income ratios of 31% and 43% respectively.
Asset Eligibility
There are several requirements regarding assets (checking, savings, etc.).
Maximum: Assets may not exceed $25,000 in non-retirement funds.
Minimum: Applicants must have at least $1,000 in assets at pre-qualification.
Down Payment: In addition to the asset minimum of $1,000, participants are required to contribute their own down payment, which must be available in assets. The minimum down payment varies based upon the total non-retirement assets:
- Assets $5,000 or less = $500 down payment
- $5,001—$15,000 = $1,000 down payment
- $15,001—$25,000 = $1,500 down payment
Property Eligibility
- Homes must be within the City of Cedar Rapids limits.
- Homes located in the 100-year flood plain are not eligible.
- Homes must be owner-occupied or vacant (not a 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. Additional program guidelines apply. More information can be found at www.CityofCR.com/FTHB.
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