Most people we meet across Iowa are not short on income. They are short on cash. Rent and everyday bills have eaten the savings, and a down payment plus closing costs can feel like a wall between them and a home of their own.
The IMS Homebuyer Grant Program was built to lower that wall. Grants can be in amounts up to 5% of the purchase price, and you can point the money at the costs that usually stop good buyers: closing costs, setting up your escrow account, your down payment and the other miscellaneous charges that show up at the closing table.
What the grant can pay for
Every home purchase comes with a stack of upfront costs. The grant is flexible enough to cover the ones that matter most for your loan.
Closing costs
Lender fees, appraisal, title work and recording charges that usually land at 2% to 5% of the price.
Your down payment
Apply the grant toward the down payment and you finance a smaller balance from day one.
Escrow accounts
The first deposits for property taxes and homeowners insurance that every lender collects at closing.
Other upfront costs
The smaller items that add up, from prepaid interest to the miscellaneous charges on your closing statement.
What a 5% grant does to your numbers
A grant applied to the down payment lowers the amount you borrow. That lowers your payment every month and the interest you pay over the life of the loan. Here is a simple example using round numbers.
You can also aim the grant at closing costs instead. That does not lower the loan balance, but it can mean the difference between buying this year and saving for another two. We will show you both versions so you can choose the one that fits your budget.
Works with the loan that suits you best
Many down payment programs lock you into a single loan type. The IMS grant works with FHA loans, USDA loans, VA loans and conventional mortgages. Because we are a broker with access to multiple lenders, we can price each option with the grant applied and put them next to each other. Sometimes the grant plus an FHA loan wins. Sometimes a conventional loan with the grant costs less once mortgage insurance is counted. We would rather tell you that up front than sell you the first option that works.
First-time and repeat buyers both qualify
Plenty of assistance programs only open the door to first-time buyers, which leaves a lot of Iowans out. If you sold a home years ago, went through a divorce, relocated for work or simply need more room for a growing family, you may still be eligible. The IMS Homebuyer Grant Program is open to first-time and repeat buyers who meet the credit and property guidelines.
Grant program eligibility
- Credit score of 620 or higher
- First-time and repeat homebuyers welcome
- Pairs with an FHA, VA, USDA or conventional mortgage
- Steady, documented income that supports the payment
- The home will be your primary residence
- Final approval from the lender on the loan and the property
Lenders set the final terms for assisted loans, and guidelines can change. We confirm the current requirements for your situation before you apply.
How to use the grant, step by step
- 1
Have a quick conversation
We review your income, credit and price range, then tell you whether the grant fits and how much it could be.
- 2
Get pre-approved
You receive a pre-approval letter with the grant built in, so your agent knows exactly what you can offer.
- 3
Shop and make an offer
Find the right home. We can help you structure seller concessions alongside the grant to lower your cash even more.
- 4
Close with less out of pocket
We coordinate the grant funds with your lender, title company and agent so the numbers on closing day match what we promised.
