Housing Revolving Loan Fund
Helping families achieve the American dream
The Southern Iowa Council of Governments (SICOG) Housing Revolving Loan Fund (H-RLF) was created to help potential first time home buyers meet the need for a down payment on a home (persons who have not owned or purchased a home in the last three years). At the onset of the program it was determined that the lack of sufficient down payment was the major obstacle for individuals when exploring the potential to procure a home loan. The program funds were provided by the Iowa Finance Authority. Loans of just under a million dollars have been made by SICOG during this ten-year period. To date more than twelve million dollars worth of homes have been purchased using this loan fund. (See chart below).
Loans up to a maximum of $5,000 can be made with a dollar to dollar match of the home buyer's own down payment funds. Activities financed will generally be, but are not limited to, down payment, closing costs, and renovation activities. The interest rate on the SICOG H-RLF loans is a very attractive fixed rate of 2%. The length of the loan is seven years; but, the first two years are deferred of interest and payments. By deferring repayment of the principal, the private lenders will have what will be considered a "less risky loan". Also, by deferring repayment of the SICOG H-RLF loan, this reduces the monthly payments for the borrower. This is an excellent way to provide "gap financing" to the borrowers. 59% of our loans have been made to buyers meeting low-to moderate income guidelines.
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| LOCATION |
Number of Loans Made |
Loans Outstanding |
Loans Paid Off |
Value of Home Purchased |
| Adair County |
39
|
7
|
32
|
$1,463,600.00
|
| Adams County |
15
|
4
|
11
|
437,860.00
|
| Clarke County |
101
|
18
|
83
|
$5,006,100.00
|
| Decatur County |
13
|
3
|
10
|
$633,707.00
|
| Madison County |
66
|
5
|
61
|
$2,962,173.00
|
| Ringgold County |
27
|
3
|
24
|
$766,430.00
|
| Taylor County |
50
|
7
|
43
|
$1,606,050.00
|
| Union County |
228
|
63
|
165
|
$9,778,791.00
|
| Total |
539
|
110
|
429
|
$22,654,711.00
|
Above numbers as of March 26, 2008
Staffing and Technical Assistance
The SICOG H-RLF is available to eligible home buyers in SICOG's eight-county region where a twenty-five percent local match of the loan amount has been provided by the county, the city, a development group, a lending institution, or other individuals or businesses. Providing local match funds is a positive way for local governments, employers or others to encourage potential homebuyers to remain within their communities as homeowners, help create a stable workforce, and to bring to the community the benefits of home ownership among citizens who might otherwise not be able to purchase their first home. The local match funds can be reused by a new borrower after the initial loan has been paid off to generate further home purchases. If you are interested in further information about this program, call the SICOG office (641) 782-8491.
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