Buyer Eligibility

• Household income must be under 80% of the Area Median Income to qualify for down payment assistance. This amount is based on household size and includes income for anyone who will live in the purchased home. Maximum Household Income (Effective June 1, 2025): 
  
  
• 1-person household: $66,200
• 2-person household: $75,650
• 3-person household: $85,100
• 4-person household: $94,550
• 5-person household: $102,150
• 6-person household: $109,700

• Buyer must qualify for financing through GreenState or Hills for the cost of the home not covered by the City's down payment assistance.
• All participants must complete a HUD-approved homebuyer education course. 
• Buyers must contribute a minimum of $250 of their own funds for down payment or closing costs and show two months of housing payments in reserves (savings that will be available after the closing in case of emergency).
• Applicant must be a first time homebuyer with no ownership in a principal residence during the 3-year period ending on the date of purchase of the property. This includes a spouse. 
• Buyer must meet the following underwriting criteria:
• Between 20 – 31% mortgage-to-income ratio
• Less than 43% debt-to-income ratio

Property Eligibility

• Purchased homes must be located within the City of Iowa City municipal boundaries and out of the flood plain. 
• Single family and condo units are eligible. Mobile home purchases are not eligible.
• The purchase price of the home cannot exceed $276,000.
• Properties cannot be located within a 100-year floodplain. City staff will complete an environmental review for each home prior to closing.
• Homes must pass a Housing Quality Standards (HQS) inspection and the property must be in compliance with federal lead regulations prior to the closing.
• Homes must be owner-occupied or vacant (not a current rental property with tenants) prior to purchase

Fill out the online Down Payment Assistance Application 

• Complete a mortgage application with GreenState Credit Union or Hills Bank. Work with a local GreenState or Hills Bank lender to obtain a mortgage pre-approval letter.
• Complete the HUD-required homebuyer education course through Horizons. GreenState or Hills will cover any costs associated with homebuyer education: https://www.ehomeamerica.org/horizons
• As part of the application process, you will need to create a login through Neighborly Software. For more information on creating a login please see the Neighborly Registration Guide.
• The application will also ask you to submit a digital copy (PDF preferred) of your Mortgage Pre-Approval Letter (from either Hills Bank or GreenState Credit Union) and your income and asset verification for all household members. To assist with collecting income and asset information, please see Down Payment Assistance Checklist for Income and Assets.
• Public computer access is available at the Iowa City Public Library: https://www.icpl.org/services/computers-technology
• The Iowa City Senior Center provides computer and technology assistance for seniors. Those interested can contact Brad at bmowrey@iowa-city.org or 319-356-5211.
• If you have questions, contact Walt McFadden: wmcfadden@iowa-city.org, 319-356-5129.

• Downtown Iowa Avenue - Pete Johnson (319) 341-2213
• Eastside Iowa City - Sara Marshall (319) 248-7182
• Westside Iowa City - Sean Pottratz (319) 248-7128
• Coralville - Matt Frascht (319) 341-3062
• North Liberty Penn St - Eric Baumgarth (319) 341-3070
• North Liberty Financial Center - Jessica Campbell (319) 248-7175

 GreenState Area Lenders

Hills Bank Lender Contact by Location

• Coralville
  • Hannah Petersen – (319) 655-5721
  • Miguel Silva -  (319) 358-6113
  • Tammy Smith – (319) 358-6123
• Iowa City
  • Chris Jenn – (319) 358-2222
  • Jack O’Rourke – (319) 688-4616
  • Kevin Bachus – (319) 358-2233

• North Liberty
  • Jessica Bandy – (319) 358-6135

Hills Bank Area Lenders

Walt McFadden, Program Assistant
wmcfadden@iowa-city.org
319-356-5129

Brianna Thul, Senior Community Development Planner
bthul@iowa-city.org
319-356-5240