The First Time Homebuyer Down Payment Assistance Program debuts in Eastern Iowa just as average mortgage payments in the U.S. have risen by more than $600 in the last few years.
East Central Iowa Council of Governments partnered with three local trust fund agencies to apply for HOME Investment Partnerships Program funds from the Iowa Finance Authority. They were awarded the funds and created the First Time Homebuyer Down Payment Assistance Program.
Under this program, the residents of Anamosa, Belle Plaine, Coralville, Kalona, Lone Tree, Marengo, Monticello, North Liberty, Solon, Tiffin, Vinton, University Heights, Washington and Williamsburg can receive up to $35,000 of a forgivable loan to help with a down payment.
Over two years, the program aims to help 15 low-to-middle-income first-time homeowners across E-CCOG’s six-county region. The eligibility criteria include income limits at or below 80% Area Median Income for family size. Applicants must obtain a fixed-rate mortgage with a term of at least 15 years and commit to owning and occupying the purchased home as their primary residence for 5-10 years, depending on the amount of assistance provided.
The problem of accessing mortgage loans has grown more acute over the last decade. Megan Flewellyn from the Iowa City Area Association of Realtors noted the average age of first-time homeowners went up from 28 to 40 years old over the past few years.
Young people face a lot of obstacles in trying to obtain their own home. They may still have to pay off student loans, while also working against rising inflation and the growing cost of living. By recent estimates, nearly two-thirds of American parents with Gen Z children are still supporting the young people financially, as current economic conditions prevent youth in their mid-20s and often beyond from fully covering their own living costs.
As for the mortgage, it has grown almost inaccessible for many people over the last few years. Realtor.com data showed that the average mortgage payment in the U.S. rose 44% in roughly four years, from $1,390 in early 2021 to $2,005 at the end of 2025.
Therefore, down payment assistance programs are helping families make their home purchases more affordable.
