Home Ownership Opportunity Fund
Polk County Housing Trust Fund has two programs to assist individuals with home ownership. The programs are the Down Payment/Closing Costs Assistance and Homebuyer Affordability Equity Assistance Program, and the Forgivable Loan Program.
Down Payment/Closing Costs Assistance & Homebuyer Affordability Equity Assistance Program
This program is offered to any home purchaser who will reside in low-moderate income census tracts in Polk, Dallas or Warren counties. Qualifying homebuyers seeking home purchase first mortgage loans or a first mortgage loan for contract refinancing must work through financial institutions or mortgage lenders who contribute annually to the "FUND" at a minimum level of $25,000.00 AND/OR to the Polk County Housing Trust Fund (PCHTF) at a minimum level of $10,000.00.
Forgivable Loan Program
PCHTF currently administers its own Forgivable Loans on first mortgages to eligible low-income (80% MFI or less single family) borrowers under the following conditions:
- The mortgage is for a fixed rate and for a fixed term of 30 or less years.
- The Front Debt Ratio* does not exceed 30% of gross monthly income and the Back Debt Ratio* does not exceed 38% of gross monthly income.
- The combined monthly housing expense includes monthly payments for taxes and hazard insurance. If the homeowner pays an annual insurance premium, proof of payment must be provided within, or in addition to, the HUD 1. If there is a tax abatement, the monthly housing expense figure must include an estimate of what the monthly taxes will be once the abatement has ended.
- There is agreement to meet the requirements of applicable city construction code and to secure the necessary permits and inspections.
- PCHTF will only subordinate to a Second Mortgage if the Mortgagee is a public funder, such as the City of Des Moines
In addition to the conditions listed above, PCHTF will subordinate a forgivable mortgage loan for eligible borrowers who are refinancing, under the following conditions:
- The request is for an equal or lower fixed rate and fixed term with no cash out and no debt consolidation, and the amount refinanced equals the home loan balance plus closing costs.
- Refinancing for an equal or lower fixed rate and fixed term with home improvements under $10,000 must include a plan for home improvements. Any amount over $10,000 must be escrowed and managed by the lender, and include a plan for home improvements.
If you are an individual interested in participating in either of these programs, talk to your financial institution.
If you are a financial insitution interested in administering these programs, please contact Polk County Housing Trust Fund.