Down Payment Program

The Waterloo Housing Authority administers a down payment assistance program, in an effort to increase homeownership opportunities for non-traditional first time home buyers.

Program Summary
Housing July 2024The Waterloo Housing Authority partnered to reach non-traditional first-time homebuyers. Targeted particularly are those low to moderate-income households underrepresented and least likely to apply, to enable them to enjoy the benefits of homeownership within the jurisdiction of the Housing Authority.

A forgivable 2nd mortgage in the amount of the grant is required of each homebuyer, and any recaptured amounts will be used to replenish the loan fund if the homebuyer decides to sell in less than 5 years.

Eligibility Requirements

  • An applicant must have completed Home Buyer Training provided by Operation Threshold, or Family Management.
  • An applicant must be a current resident of Waterloo for at least one (1) year.
  • An applicant must be a first-time homebuyer defined as neither party head or having ownership in a home or title to a mortgage within the last 36 months.
  • An applicant may not own other residential property.
  • If possible the homebuyer should cover closing costs from their own funds.
  • Total family income cannot exceed 80% of the median income for the MSA based on family size.

July 9-12th 2024 will be the next session. 
Contact Senada at Senada.Muhic@WATERLOO-IA.ORG for more information. 

The Waterloo Housing Authority Offers a Home Ownership Voucher Program

The Section 8 Home Ownership Program permits eligible participants in the Section 8 Housing Choice Voucher Program, including participants with portable vouchers, the option of purchasing a home with their Section 8 assistance rather than renting. The home ownership option is limited to three percent (3%) of the total Section 8 voucher program budgeted by WHA in any fiscal year, excluding disabled and elderly families.

The program is available to current participants who have completed an initial Section 8 lease term consisting of 12 months, do not owe monies to the City of Waterloo Housing Authority or any other Housing Authority for any outstanding debts, and who meet the eligibility criteria set forth below. Additionally, participants who are in violation of their family obligations while receiving Section 8 assistance shall be ineligible for participation in the Section 8 Home Ownership Program.

To participate in the Voucher Homeownership Program, the following must be met:

  • Annual income equal to the current minimum wage x 30 hours/week
  • At least one year of continuous employment
  • First-time homeowner
  • Completion of Homebuyer Pre-Purchase education classes 
    • Home Buyer Education classes can be completed at at your own pace for a fee of $100.  Participants will then need to contact Family Management to complete a one-on-one counseling session.  A certificate of completion of these classes is required to receive down payment assistance.  

  • Completion of Money Smart Financial Education classes (sponsored by the Housing Authority in the Spring and Fall of each year.)
In all cases, the determining factor for participation in the program will be the family’s ability to qualify for a mortgage. Elderly/disabled families do not need to meet income and employment requirements but still must be able to qualify for financing.

Up to $5,000 in Closing Cost Assistance Grant Available with Conventional Financing.

Eligible home buyers using conventional financing may now benefit from $5,000 in closing cost assistance.

The closing cost assistance is available for a limited time only and is expected to assist approximately 230 home buyers.
More information is available here.