Down Payment Assistance Program

The City of Muscatine Housing Counseling program offers two different Down Payment Assistance (DPA) options ranging from $2,500 to $20,000 based on eligibility and need. While the two DPA programs offered by the City of Muscatine Housing Counseling program cannot be combined with each other, they can be combined with other DPA programs outside of our organization. 

Basic eligibility for both programs are as follows:

  • BE A FIRST TIME HOME BUYER
  • BE INCOME ELIGIBLE 
  • PURCHASE AN ELIGIBLE PROPERTY 
  • SECURE ACCEPTABLE MORTGAGE FINANCING


$2,500 GRANT

BUYER ELIGIBILITY 

  • Buyer must attend a City of Muscatine Housing Counseling Homebuyer Education Class within one year of applying for down payment assistance. The class must be completed BEFORE a signed purchase agreement has been executed. 
  • Household income cannot exceed income guidelines based on household size. This amount is based on gross household income and includes income for anyone who will live in the purchased home. 
  • Buyer must contribute a minimum of $1000 of their own funds for down payment or closing costs.
  • Must be a first time home buyer as defined by HUD. 

PROPERTY ELIGIBILITY

  • Purchased homes must be located within Muscatine County, Iowa and not within a flood plain. 
  • Single-family and condo units are eligible; mobile home purchases are not eligible. 
  • Homes must be owner-occupied or vacant (not a current rental property with tenants.)

MORTGAGE ELIGIBILITY 

  • Mortgages must meet “Qualified Mortgage” criteria as well as additional requirements, including no non-occupying co-signers and must be fixed rate. 

INCOME LIMITS

  • 1-2 Person - $77,200
  • 3-7 Person - $88,780
  • 8+ Person - $92,050


THRIVE DON’T DRIVE - Up to $20,000

BUYER ELIGIBILITY 

  • Buyer must attend a City of Muscatine Housing Counseling Homebuyer Education Class within six months of applying for down payment assistance. The class must be completed BEFORE a signed purchase agreement has been executed. 
  • Household income cannot exceed income guidelines based on household size. This amount is based on gross household income and includes income for anyone who will live in the purchased home. 
  • Buyer must contribute a minimum of $1000 of their own funds for down payment or closing costs.
  • Must be a first time home buyer as defined by HUD. 

PROPERTY ELIGIBILITY

  • Purchased homes must be located within Muscatine County, Iowa and not within a flood plain. 

  • Single-family and condo units are eligible; mobile home purchases are not eligible. 
  • Properties cannot be in the 100-year floodplain. An environmental review will be completed 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 closing. 
  • Homes must be owner-occupied or vacant (not a current rental property with tenants.)
  • A 3rd Party inspection is required. 

MORTGAGE ELIGIBILITY 

  • Mortgages must meet “Qualified Mortgage” criteria and meet additional requirements, including no non-occupying co-signers and must be fixed rate.

  • Households must not exceed a maximum 40% debt to income ratio including new mortgage. 

INCOME LIMITS 

  • 1 Person - $48,800

  • 2 Person - $55,800
  • 3 Person - $62,750
  • 4 Person - $69,700
  • 5 Person - $75,300
  • 6 Person - $80,900
  • 7 Person - $86,450
  • 8 Person - $92,050