Federal Home Loan Bank (FHLB) Affordable Housing Program (AHP)
About the Program
This program offers up to $9,998 in gap funding for eligible homebuyers at or below 80% AMI purchasing newly constructed homes. This funding is secured in the form of a 5-year forgivable Deed Restriction on the property. Income verification and construction cost documentation are both essential to this program; a checklist of documents needed prior to and after closing may be found on our website. While funding is available on a first come, first-served basis, preference will be given to projects serving persons with special needs (elderly persons 62 years or older; or persons with mental or physical disabilities). Funding is available on a first-come, first-served basis. Once funding is approved, Habitat Iowa will charge a service fee calculated at 10% of the award amount.
Important notes about this program:
Only new construction projects qualify for this grant
Funds are used to cover the gap in development resources, this includes the present-day value of the mortgage, gifts-in-kind, donations, and other grants and loans.
20% of the projects must serve persons with special needs; these projects will take precedence. A special needs voluntary self-disclosure form will be made available to the homebuyers to complete.
Homebuyers are required to complete a minimum of 8 hours of pre-purchase financial planning, credit counseling or budgeting.
How to use the funds:
Contact our Christine Hall at 515-266-6886