Homes for Iowans is a product of the Iowa Finance Authority (a Mortgage Revenue Bond Program or MRB) and offers subsidized rates on typical programs for incomes that qualify. The IFA site has that information there for you to read on...but essentially it offers the main types of loans that people ask for: FHA, VA, RD or Conventional. Currently, IFA is the only Iowa based program that I am aware of that can offer the Fannie 97 (97% ltv loan) with a reduced MI (mortgage insurance) rate. MRB programs are exempt from new Fannie loan level price adjustments and are allowed to offer this program at a reduced rate.
All of the aforementioned loans are underwritten the same but with a few IFA overlays to them. Most often, as long as the income guidelines are met, there aren't any issues.
Additionally, IFA is offering what's call MCC or the Mortgage Credit Certificate. That is an "after tax" benefit that is a certain percentage of the interest you pay each year that gets applied to your taxes. It lasts for the life of the loan and is a great tax credit to take advantage of, if you qualify. Again, information is on their site.
Best thing to do is contact a community banker in your area and sit down with them. Or, you can call Beth Mahaffey directly. She's listed on the IFA site as well. She can help you better understand and direct you to a person who can help.
