Single-Family New Construction Down Payment Assistance 

The North Iowa Area Council of Governments is offering down payment assistance of up to 25% of the purchase price for newly constructed homes in the North Iowa area.  Over 80 homes have been sold. The remaining sites are located in Charles City. You can find a specific list of remaining site locations, prices, and home designs here. This assistance is offered in the form of a 5-year, forgivable loan which will be used to buy down the amount that you borrow for the home. The forgivable loan works like a grant in that it does not need to be paid back unless the property is sold, rented or vacated within 5 years after closing.  For a brochure please download and print here.  Click Here


1. The homes purchased MUST be one of the participating properties in this program.

2. You and your household MUST meet the income guidelines below which are based on the number of persons in your household (as set by the Department of Housing and Urban Development each year):

County Of New home

1-person household

2-person household

3-person household

4-person household

5-person household

6-person household

7-person household

8-person household










3. You MUST obtain your home loan from a lender that has been approved for the program. Approved banks include: Iowa Heartland Community Credit Union, North Iowa Community Credit Union, Northwood State Bank, Manufacturers State Bank (MBT), Liberty Bank, St. Ansgar State Bank, First Citizens National Bank, Cresco Union Savings Bank (CUSB), Home Trust & Savings Bank, First Security, Clear Lake Bank & Trust Co., and Habitat For Humanity. The home loan obtained must be at least a 15-year, fixed-rate fully amortized loan with early pay-off allowed.  Co-signers are allowed, but they cannot be included on the deed as an owner.  The loan must be between 50% and 75% of the home's purchase price.  You will need to pay the closing costs out of pocket because they cannot be included in the loan; these include the cost for the bank to make the loan, the appraisal, legal work, etc.

4. You must be prepared to close on the home at the time required by the seller after issuance of a certificate of occupancy.

5. If you are approved for the program and agree to purchase one of the participating properties, the program will pay 25% of the purchase price of the home at the closing. You will need to pay the closing costs (bank origination fee, legal costs, appraisal) out-of-pocket.

6. The assistance is in the form of a 5-year forgivable loan, and a lien will be placed on the property. No payments are made.  The lien is forgiven at 20% per year for 5 years. After 5 years, the loan is fully forgiven, and the lien can be removed from the property. You may sell the home during the 5-year period, but the balance of the loan must be repaid to NIACOG.

7. The home must be your primary residence during the five-year period.  This is not a first time homebuyer program, and people who currently own a home are not precluded from participating in this program; however, the current home must be sold, rented out, or otherwise disposed of as a residence for the applicant.

8. Assistance under this program will not be allowed to be combined with any Federal Jumpstart Homebuyer Assistance or State Jumpstart Down Payment Assistance on the same dwelling unit or person/household served.


1. First, you will need to submit a Homebuyer Assistance Application Form including all attachments listed in the application, such as a copy of your most recent tax return, basic financial information, and a copy of a loan preapproval letter from an approved bank. Approved banks include: Iowa Heartland Community Credit Union, North Iowa Community Credit Union, Northwood State Bank, MBT, Liberty Bank, St. Ansgar State Bank, First Citizens National Bank, CUSB, Home Trust & Savings Bank, First Security, and Clear Lake Bank & Trust Co.

2. NIACOG will verify your eligibility and income based on information submitted with your application, and if you are not eligible you will be notified immediately.

3. Information about the homes can be obtained from Stewart Reality or from NIACOG. 


1. Income will be verified through tax and income documentation and third-party verification to determine eligibility.


View Home Designs and Floor Plans

Homebuyer Assistance Application Form (Word) | (PDF)


  Green Criteria Checklists (Word) | (PDF)