SFNC Round 3

The Single Family New Production - Round 3 program is able to provide down payment assistance for up to 34 new homes constructed in the ECICOG region. The homes will be constructed in Anamosa (1), Coralville (10 - All sold), North Liberty (10 - All sold), Palo (7 - All sold) and Washington (6 - some remain).

To comply with state and federal regulations, at least 50% of the homes offered in this program are priced at or below $150,000, with the remaining homes priced at or below $180,000. Further, regulations require that at least 50% of homes are sold to households at or below 80% of the county median income, while the remainder of homes will be sold to households at or below 100% of the county median income.

Eligible persons are offered acquisistion assistance (in the form of a 5-year forgivable loan) of up to 25% of the purchase price of a newly constructed home.

All properties in the Round 3 program will be administered by ECICOG.

Please select a city to view property information:

What are the rules?

Homes

The purchase prices of the homes range from $138,900 up to $180,000. These prices are fixed and no owner requested upgrades are allowed that will exceed the listed sale price. The homes in this program are not custom built homes; however the builders may offer some choices within their development budget. Availability and range of choices are subject to the discretion of the builder. If you are approved for the program and agree to purchase one of the participating properties, the program will pay 25% of the purchase price of the home at the time of the closing.

Selection of Applicants

All applicants who meet household income limits set by this program will be considered.
The application period runs June 6th through July 6th, 2011.

• For applications received on the same day, priority will be given in the following order:
  1. First priority given to those whose primary residence was more than 50% damaged by the 2008 floodwaters.
  2. Second priority given to those whose primary residence was less than 50% damaged by the 2008 floodwaters.
  3. Third priority will be given to first time homebuyers.
  4. Fourth priority will be given to those who are Linn County and Johnson County residents.
  5. If homes remain available after the applications are processed following the deadline given on this application, new applications will be processed on a first come/first served basis or with another lottery.
• You and your family must meet the income guidelines (less than 100% or less than 80% of the area median income), based on the number of persons intending to reside in a household purchased through this program (as set by the Federal Dept. of Housing and Urban Development each year). Preference may be given to those under 80% of median income to ensure compliance with the Iowa Department of Economic Development program requirements. Program rules require that 50% of the homes must be sold to households under 80% of median income.
  NOTE: Properties in different counties have different income guidelines.
• Income and assets will be verified through tax and income documentation and third-party verifications.

Purchasing a Property

• Applicants must be able to secure a loan with a program-approved lender sufficient to cover the cost of purchasing a participating home available at the time that they apply for the program.
• You must obtain your mortgage from a lender that is approved by ECICOG to participate in this program (see below). Mortgages from no other financial institutions will be accepted other than the ones on this list. The mortgages obtained must be at least a 15-year, fixed-rate loan with early pay-off allowed.
• The home purchased must be one of the participating properties in this program.
• The home must be your primary residence during the five-year period.
• Applicants must be able to purchase a home from this program without making this purchase contingent on the sale of a residential property they currently own.
• The assistance will be paid in the form of a five-year forgivable loan, and a lien will be placed on the property. The lien will provide that 20% of the assistance balance will be forgiven each year for five years. After five years, the loan is fully forgiven, and the lien will be removed from the property. You may sell the home during the five-year period, but the remaining balance of the loan must be repaid to ECICOG.
• Assistance under this program cannot be combined with any Federal Jumpstart Homebuyer Assistance or State Jumpstart down payment Assistance on the same dwelling unit or person/household served.
• Applications must be complete at the time they are submitted.
• It will be the responsibility of the homebuyer to comply with all requirements of ECICOG, the lender and the property seller.
• ECICOG does not guarantee that any applicant will be able to purchase a home.

Income Guidelines:

Participants must meet federally-established income guidelines to participate in this program. Iowa Department of Economic Development (IDED) rules require that at least 50% of the homes in this program must be sold to households at or below 80% of the county's Median Family Income (MFI). All other properties must be sold to households at or below 100% of the county's MFI.

Because the MFI for each county is different, please check the income guidelines below for the property in which you have interest.

Click on the city below to view the applicable 2011 HUD income limits. To use the resulting table, locate the column that indicates the number of people in your household. Your income must not exceed the figure in the bottom row of that column (equivalent to 100% of county median income), and 50% of program participants' income may not exceed the number in the second to last row (80% of county median income).

Next Steps

1. Find out as much information as you can about the homes that are eligible for this program to determine if:
   You would be interested in buying one of the homes; and
   You can afford the home, assuming that you qualify for the program.
2. Contact one of the participating program lenders to determine if you will be able to afford mortgage and tax payments for a home in this program.
3. Submit an application to ECICOG
   Download the SFNC Round 3 Application
   Note: You will need to have a copy of your 2010 (the most recently completed) tax return and basic financial information available to complete the application.
   Please note: The application for Round 3 is different than for Round 1 and Round 2. Please fill out the Round 3 Application if you would like to apply for assistance on a Round 3 qualifying property.
4. ECICOG will verify your eligibility and income based on information submitted with your application, and if you are not eligible you will be notified immediately.

Contact:

ECICOG
Attn: SFNC-Round 3
700 16th Street NE, Suite 301
Cedar Rapids, IA 52402

Fax: 319-365-9981

E-mail: robyn.jacobson@ecicog.org

Questions can be directed to: Robyn Jacobson, Grants Administrator, 319-365-9941, ext. 134