Affordable Homeownership Program

Affordable Homeownership Program Overview

Program Name: Affordable Homeownership Program

Geographic Scope: Linn and Benton Counties, Iowa

Background: Cedar Valley Habitat for Humanity offers a hand-up to families in need of safe, decent and affordable housing. The organization has served over 360 area families since its founding in 1988. The program keeps homes affordable through the use of volunteer labor and affordable mortgages, allowing applicants to become first-time homeowners who wouldn't typically qualify for conventional financing.

Partnership Model: Qualified applicants become full partners in the work of building or rehabilitating their future homes with Habitat sponsors, volunteers and other community stakeholders. Families who successfully complete the program partner with Habitat to extend the blessing to future program participants by making on-time monthly mortgage/loan payments to the revolving Fund for Humanity.

Eligibility Requirements

Housing Need:

• Applicant must have a demonstrated need for housing
• Need is established based on factors including condition of current housing, space considerations, and cost burden

Income Requirements:

• Applicant must have sufficient, stable and verifiable household income to support monthly mortgage payments
• 2025-26 Income Guidelines for Linn County:
  • Family of 1: $21,350 - $56,950
  • Family of 2: $24,400 - $65,050
  • Family of 3: $27,450 - $73,200
  • Family of 4: $32,150 - $81,300
  • Family of 5: $37,650 - $87,850
  • Family of 6: $43,150 - $94,350
  • Family of 7: $48,650 - $100,850
  • Family of 8: $54,150 - $107,350
• 2025-26 Income Guidelines for Benton County:
  • Family of 1: $23,300 - $62,100
  • Family of 2: $26,600 - $70,950
  • Family of 3: $29,950 - $79,800
  • Family of 4: $33,250 - $88,650
  • Family of 5: $37,650 - $95,750
  • Family of 6: $43,150 - $102,850
  • Family of 7: $48,650 - $109,950
  • Family of 8: $54,150 - $117,050

Credit and Employment:

• Buyers must be credit-worthy and not have any outstanding judgments
• Stable length of employment is defined as a minimum of one year in applicant's current job location

Partnership Commitment:

• Applicant must demonstrate a willingness to partner
• Partnership activity begins after approval of the application by the Board of Directors
• Buyers must complete 300-400 hours of sweat equity
• Participate in a series of classes ranging in topic from managing a monthly budget to maintaining a new home

Pre-Closing Requirements:

• Families are required to have completed their sweat equity and classes
• Made a $1,000 down payment
• Pre-paid for one year's worth of homeowners insurance
• All tenets of Habitat partnership and financial fitness must be maintained

Program Features

• First-time homeownership opportunities
• Affordable mortgages
• Volunteer labor reduces costs
• Sweat equity participation builds ownership commitment
• Financial literacy classes required
• Perpetual revolving Fund for Humanity model

Contact Information

Cedar Valley Habitat for Humanity

• Address: 350 6th Ave SE, Cedar Rapids, IA 52401
• Phone: 319.366.4485
• Office Hours: Monday – Friday 9:00 a.m. to 5:00 p.m.

Non-Discrimination Policy

The federal Equal Credit Opportunity Act prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age; because all or part of the applicant's income derives from any public assistance program; or because the applicant has exercised in good faith any right under the Consumer Trade Commission. Cedar Valley Habitat for Humanity is pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation.

Step 1: Review Requirements

Applicants should review all eligibility requirements and program guidelines before proceeding.

Step 2: Attend Homeowner Information Session

• Applicants must participate in one of the monthly orientation sessions before Cedar Valley Habitat reviews their application
• Habitat staff and volunteers review program guidelines and expectations
• Prospective homeowners have opportunity to ask questions
• Reservation is required - Call 319.366.4485 to reserve your seat
• Session Schedule: Second Tuesday of each month at 10:00 a.m. and 5:30 p.m.
• Location: 350 6th Avenue SE, Cedar Rapids, IA

Step 3: Submit Application

Once you have reviewed the application requirements and attended a monthly orientation, complete the following:

1. Application Forms:
   • Complete all required application forms (contact office at 319-366-4485 to request forms if not available online)
   • Include all necessary supporting documents as detailed in the application materials
   • Submit $7 non-refundable application fee
2. Required Documents:
   • Complete application package with all supporting documentation
   • Documentation of income verification
   • Employment history (minimum 1 year in current position)
   • Credit information for review
   • Documentation of housing need

Step 4: Application Review Process

• Pending a successful initial review, application is forwarded to volunteer Family Services Committee
• Ultimately considered for approval through the Board of Directors
• Applicants are advised to remain patient, as the application process takes time

Step 5: Partnership and Sweat Equity

Successful applicants enter into full partnership with Cedar Valley Habitat and begin working toward home ownership:

• Complete 300-400 hours of sweat equity
• Participate in required financial literacy and homeownership classes
• Make $1,000 down payment
• Pre-pay for one year's worth of homeowners insurance
• Maintain all tenets of Habitat partnership and financial fitness

Step 6: Closing

Before closing on a home, all partnership and financial fitness requirements must be maintained and completed.

Contact Information

Cedar Valley Habitat for Humanity

• Address: 350 6th Ave SE, Cedar Rapids, IA 52401
• Phone: 319.366.4485
• Office Hours: Monday – Friday 9:00 a.m. to 5:00 p.m.