Are there restrictions on how the grant may be used?
Yes. Home$tart and Home$tart Plus grants may be used for down payment and closing costs or to rehabilitate a new residence. Please contact Liberty Bank to speak with a lender if you plan on using the funds for rehabilitation. The grant may not be used to pay for moving costs or to pay the bills.
What happens if I sell my house?
If your home is purchased with Home$tart or Home$tart Plus assistance, it is subject to a five-year deed restriction requiring that you return a portion of the grant if you move or sell your home within five years of purchase. This amount will be prorated based on the length of time you own the home, and the funds will be taken from your sale proceeds. If you sell your home at a net loss or to another low- or moderate-income home buyer or if you lose your home through foreclosure, the prorated amount owned on your grant will be forgiven; In these cases, your title company should contact FHLB Des Moines to request a forgiveness review. However, if you live in the home at least five years, you will never have to repay the grant – it’s all yours!