Iowa Finance Authority Income Limits

The Iowa Finance Authority (IFA) offers various programs designed to assist Iowans with affordable housing. A critical component of eligibility for many of these programs is meeting specific income limits. These limits are established to ensure that assistance is directed to those most in need and they vary depending on the program, household size, and county of residence.

IFA income limits are generally based on the Area Median Income (AMI) for each county, as determined annually by the U.S. Department of Housing and Urban Development (HUD). AMI is the midpoint of a region’s income distribution, meaning half of the households in the area earn more than the AMI, and half earn less. The IFA then calculates income limits based on a percentage of the AMI, such as 50%, 60%, or 80%, depending on the specific program.

Several key IFA programs utilize income limits:

• FirstHome Program: This program provides mortgage options and down payment assistance to first-time homebuyers. Income limits are typically set at a percentage of the AMI, allowing individuals and families with modest incomes to achieve homeownership. These limits are county-specific and are designed to reflect the local cost of housing.
• Rental Assistance Programs: IFA also administers programs that provide rental assistance to low-income households. These programs, such as the Housing Choice Voucher Program (Section 8), also use AMI-based income limits to determine eligibility. The limits for rental assistance often differ based on household size, as larger families require more space and resources.
• Multifamily Housing Programs: IFA works with developers to create affordable rental housing through various tax credit and financing programs. These programs also utilize income limits to ensure that the units are occupied by eligible residents. The income limits for these properties can vary depending on the specific financing structure and targeted income groups.

It is crucial to consult the IFA’s official website or contact them directly for the most up-to-date and accurate income limits for a specific program and county. Income limits are typically updated annually, reflecting changes in the AMI and local economic conditions. The IFA website often provides a searchable database or downloadable tables that allow individuals to easily find the income limits relevant to their situation.

When calculating your household income for eligibility purposes, it is essential to understand which sources of income are considered. Generally, all sources of income for all household members are included, such as wages, salaries, self-employment income, Social Security benefits, and alimony. Certain deductions may be allowed, such as childcare expenses or medical expenses for persons with disabilities, but these deductions vary by program and should be confirmed with the IFA or a participating lender.

Meeting the income limits is just one of the eligibility requirements for IFA programs. Other factors, such as credit score, debt-to-income ratio, and asset limitations, may also be considered. By understanding the income limits and other eligibility criteria, Iowans can determine if they qualify for assistance and take the first step toward achieving their housing goals.