Understanding the $5000 Iowa Military Homeownership Assistance Program
Every November, we take time to honor the many servicemen and women who’ve worn the uniform of our armed forces. As veterans, they’ve earned our gratitude and respect. Their service has also earned them access to various veterans’ benefits, which includes home loan guarantees from the Department of Veterans Affairs (VA). This $5,000 grant for down payment and closing cost assistance is available to eligible service members and veterans.
The $5000 Military Homeownership Assistance Program comes with no strings attached, and any eligible homebuyer should take advantage of it regardless of circumstance. Although the VA loan program requires no down payment, if a Veterans uses the MHOA grant funds towards down payment it can help reduce the VA Funding Fee (if you are required to pay this fee). This has little impact on a monthly payment and it has a great impact on the amount of equity a Veterans has in their home.
Benefits of the Military Homeownership Assistance Program for those buying in Iowa
As we mentioned, there truly are no strings attached with the $5,000 MHOA Grant. Below are some details relating to the program:
- The MHOA grant does not create a secondary lien on the property, there is no repayment when the property is sold, and there’s no minimum time you’re required to own the home.
- There is no fee for the program. The use of the MHOA grant will cause no increase to closing costs when you work with RMN.
- The program has no effect on interest rates. When you work with RMN, your interest rate and mortgage loan terms will never be affected by the MHOA grant.
- The MHOA grant can be paired with any loan program, including the VA loan program.
- The $5,000 grant can be applied towards any combination of down payment, closing costs, and prepaid expenses.
MHOA Qualification Requirements
You must meet one of the following service requirements to qualify for the grant:
- Have served 90 days active duty between August 2, 1990 and April 6, 1991 or September 11, 2001 to present. Active duty need not be consecutive; it may be cumulative. Inactive Duty Training, Annual Training and Active Duty for Training may not count toward active duty; or
- A federal status injured service person having served in active duty August 2, 1990 and April 6, 1991 or September 11, 2001 to present; or
- A surviving spouse of said eligible service person, all who have had a discharge other than dishonorable.
In the end, the VA loan program can be a big help to those who have sacrificed their country and want to achieve the dream of homeownership. If you or a buyer you know might be eligible for the MHOA grant, contact RMN today to make sure you don’t miss out on this excellent program!
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