The Oskaloosa Housing Trust Fund has teamed with the Iowa Dept. of  Economic Development to provide a forgivable loan to assist with the purchase of a newly constructed home in Oskaloosa. The purchased home cannot exceed 95% of the area median sales price as defined by HUD ($237,000 as of February 2008). Homes must include all essential and structural elements of the dwelling, including the installation of basic equipment, steps, walks and driveways. Appliances are not considered basic equipment.

The $32,000 forgivable loan is non-transferable, has no (0%) interest, and has a 10-year recapture provision. Attendance, and participation, in a qualified first-time home buyer education course administered by representatives of the OHTF, or other OHTF approved entities, is required.  

Eligible participants must not have had interest in a residential property    within the past 3 years prior to making application and must have a total household income not exceeding 80% of the Mahaska County Median Income. Exceptions are displaced homemakers and/or owners of a manufactured house not sitting on a permanent foundation.  Participants will be required to pay all recording fees and a $75 loan processing fee.

Application can be made at any participating lender who utilizes a   mortgage loan product offered by:

•     Iowa Finance Authority
•     USDA Rural Development
•     Federal Home Loan Bank
•     HUD (including FHA & VA)
•     FannieMae
•     FreddieMac

The loan product can not require more than a 10% down payment and will be no less than a 15-year fully amortized, fixed rate mortgage. Participating Lenders:

•      Bank Iowa
•      First national Bank Midwest
•      MidWestOne Bank & Trust
•      USDA Rural Development