FY25 Military Homeownership Assistance Program

The Iowa Finance Authority is pleased to announce that Governor Reynolds has signed the budget bill that included $2.2 million for the Military Homeownership Assistance Program (MHOA) for fiscal year 2025.

We will begin accepting new reservations Monday, July 8, 2024.

Lender Program Requirements

The following requirements are in place for participating and facilitating lenders offering the Military Homeownership Assistance (MHOA) Program.

The requirements are being introduced to protect the integrity of the program. Lending institutions that receive two notices of a program violation will be ineligible to offer the MHOA Program until the next potential allocation in FY26.

• Must notify IFA to cancel a reservation as they occur to free up funds for another military member.
• Must have a pre-close commitment prior-to-closing.
• Must close the loan as presented, documented, and approved during the pre-close review.
• Must not reserve the funds too soon OR without a valid Purchase Agreement. Reservation is valid for 60 days.
• Must submit post-closing package within 30 days of closing. Watch expiration dates.
• Must provide a legible DD214 Member 2 or higher form with honorable discharge and not for training. No COE, NGB22, letter from military branch personnel, or retirement docs will be accepted.
• Must submit DD214 with eligible service dates between 8/2/90 – 4/6/91 or after 9/11/2001.
• Must provide a valid reason for non-IFA MHOA.
• Example of an invalid reason: Loan is over the purchase price but submit for lower rate/fees when the rate offered is a higher rate than IFA.
• Must submit a locked LE when reason for non-IFA is lower rate/fees. For all other reasons approval will be subject to a locked LE.
• Must not charge points to lower rate less than IFA.
• Must have an internal system within your organization to track MHOA reservations.
• Must track all stages, including receipt of reimbursement and identifying the borrower to whom the funds belong.
• Must not give too much cash back at closing. MHOA funds must be used for down payment and closing costs only.
• Must not require IFA to cancel a reservation because the guidelines were not met. Reservation will automatically be cancelled 30 days after expiration date with no opportunity for reimbursement.
• Other actions that harm the integrity of the program may be deemed actionable at IFA’s discretion.

By reserving and submitting documents to obtain a MHOA grant, you agree to these terms.

No rush requests will be accepted. Please allow 10 business days.

The homeownership team is happy to provide additional training to your organization on request.

Thank you for your continued partnership in providing homeownership assistance to Iowa’s military service members and veterans.

For more details, please visit https://www.iowafinance.com/  or call us at 515.452.0400

 

Source: https://www.iowafinance.com/