Our three-bedroom houses typically appraise for a minimum of $245,000. To make the house more affordable to first time home buyers we assist in making available at least two grants:

Homestart is a grant program through the Federal Home Loan Bank of Des Moines Iowa administered through some local financial institutions. Up to $15,000 grants are available to first time home buyers earning up to 80 percent of area median income ($89,100 for a family of four). The recipient must also complete a home buyer education class and qualify for mortgage financing with their lender. The grant goes to the applicant and may be used for down payment and/or closing costs.

AHF provides a $0 interest second mortgage on each house. The second mortgage can be used as part of the down payment. It is a forgivable mortgage and does not have to be repaid as long as the homeowner stays in the house for at least five years. This requirement prevents the homeowner from selling the house prematurely and taking out the equity provided through the second mortgage. The second mortgage can range from $25,000-$40,000.

With these grants the mortgage on a house is approximately 70% of the appraisal. The mortgage can be less if the buyer has more funds for the down payment.