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About the Cedar Rapids ROOTs Program
The Cedar Rapids ROOTs Program (Rebuild Ownership Opportunities Together) sells newly built homes from City-selected developers to low- and moderate-income buyers and adds up to $35,000 in forgivable down payment assistance. The City of Cedar Rapids Community Development - Housing Services runs it with HUD CDBG-DR disaster recovery funds, passed through the Iowa Economic Development Authority after the August 2020 derecho. The maximum sale price is $175,000 after the construction subsidy is credited.
To qualify for the Cedar Rapids ROOTs Program, household income must be at or below 80% of Area Median Income. The City's limits match HUD's FY2026 figures for Linn County: $59,000 for one person, $67,400 for two, $75,850 for three, $84,250 for four, $91,000 for five and $97,750 for six, rising to $117,950 for nine. Income from every household member age 18 or older counts, whether or not they are on the mortgage, and the City adds a share of assets and projects income over the next 12 months. The City's eligibility rules list no first-time buyer requirement and no program credit score minimum, so your lender's standards apply. Every occupant must be a U.S. citizen or lawful permanent resident, and non-occupying co-signers are not allowed. Households impacted by the derecho get first opportunity to buy, and you must be pre-qualified by the City before signing a purchase agreement with a builder.
The assistance is need-based: your lender writes a letter showing how much you need, up to $35,000, and any other down payment help is subtracted. It is a five-year lien forgiven at 1/60th per month from closing. A separate 15-year deed restriction covers the construction subsidy, forgiven at 1/180th per month, and requires you to live in the home and sell only to an income-qualified buyer or repay the balance. By comparison, the City's First Time Home Buyer Program offers $5,000 and the IFA FirstHome program a $2,500 grant.
How much assistance
Eligibility
- Income limits: At or below 80% of Area Median Income (HUD FY2026, Linn County): $59,000 (1 person), $67,400 (2), $75,850 (3), $84,250 (4), $91,000 (5), $97,750 (6), $104,500 (7), $111,250 (8), $117,950 (9). Income of all household members 18+ counts.
- Purchase price limit: $175,000
- First-time buyer required: No
- Geographic restrictions: Home must be located in a designated ROOTs reinvestment neighborhood within Cedar Rapids. Purchase price cap of $175,000.
- Homebuyer education required: Yes
How to Apply for Cedar Rapids ROOTs Program
Step 1: Check household income against the 2026 limits
Add up the gross income of everyone age 18 or older who will live in the home, including overtime, bonuses, child support and regular cash gifts. Compare it with the ROOTs limits on the City's ROOTs in CR page at cedar-rapids.org: $59,000 for one person, $84,250 for a household of four and $117,950 for nine. Lenders count only the borrowers, but ROOTs counts everyone in the household, so a loan approval does not guarantee program eligibility.
Step 2: Get a fixed-rate mortgage pre-approval
Shop lenders for a fixed-rate mortgage with a term of at least 15 years and no more than 33 years. Adjustable-rate loans, balloon payments and non-occupying co-borrowers are not allowed, though FHA and other loan types can work if they meet these rules. Ask the lender to size the loan against a home priced up to $175,000. A mortgage pre-approval letter is a required document in the ROOTs application packet.
Step 3: Apply online with the required documents
Apply through the City's portal at portal.neighborlysoftware.com/CEDARRAPIDSIA/Participant, or request a paper application from Housing Services at 101 First Street SE inside City Hall. The checklist asks for photo ID for adults, Social Security cards or proof of legal status, your latest tax return, two months of pay stubs and six months of statements for every bank account. Documents must be dated within 30 days, and free translation help is available.
Step 4: Receive City pre-qualification
Staff calculate the household's projected 12-month income, including a share of assets, and email you once your submitted application has been reviewed. Pre-qualification means you are income-eligible and may work with the program builders to pick a home. You cannot sign a purchase agreement with a builder until you hold this letter. Questions go to the ROOTs team: Jay Wilson at 319-286-5196, Megan Bogdan at 319-286-5156, or ROOTs@cedar-rapids.org.
Step 5: Choose a home from an approved builder
Homes sell first come, first served from the City's list of approved developments. On the City's current page, Shamrock Village (two-story, 3-bedroom, 2-bath duplex units near Interstate 380) and Ginkgo Ridge (2-bedroom, 2-bath units near Czech Village) are not marked sold or pending, while Foxtail Ridge and Kirkwood Village are fully pending. Contact the builder named on each development sheet, then sign a purchase agreement for City approval.
Step 6: Get your award letter and close
Once you have an accepted offer, the City reviews your Loan Estimate and the lender's letter of need to set your assistance, up to $35,000, minus any other down payment help. Homes are inspected during permitting and by program staff, and you may pay for your own inspection. A City staff member attends closing with the assistance check, payable to the closing company, and you sign the lien and 15-year deed restriction.
Real Cost Example
On a $175,000 ROOTs home in Cedar Rapids, the program's maximum sale price, a buyer whose lender documents a $35,000 need could receive the full $35,000 in down payment assistance. The buyer would finance the remaining $140,000 with a fixed-rate first mortgage of 15 to 33 years. The assistance is forgiven at about $583 per month (1/60th of $35,000), so it is fully forgiven after 60 months of living in the home.
Estimated closing costs in Cedar Rapids run $3,500 to $5,500. The City sets the ROOTs award from the need your lender documents, so do not count on it covering closing costs; budget that $3,500 to $5,500 yourself and ask the builder and lender in writing what you must bring. The citywide median home price is about $190,000, so the $175,000 cap sits $15,000 below it for a brand-new home.
A first-time buyer who also qualifies for the Iowa Finance Authority FirstHome program can use it as the $140,000 first mortgage: a 25- or 30-year fixed loan with a 640 minimum credit score and required homebuyer education, which fits the ROOTs term rules. Adding the $2,500 FirstHome grant would not raise the total, because the City would subtract it and pay $32,500. Either way, ROOTs plus FirstHome covers the full $175,000 price.
Combining With Other Programs
The Cedar Rapids ROOTs Program works with other mortgages and programs, including FHA loans and veteran grants, according to the City's February 2025 FAQ, as long as the first mortgage meets the 15-to-33-year fixed-rate rules. The Iowa Finance Authority FirstHome mortgage (25 or 30 years, 640 credit minimum, first-time buyers) fits those rules. IFA's Military Homeownership Assistance Program offers a $5,000 grant to eligible service members and veterans, with $1,305,000 left for FY2027 as of October 1, 2026.
Other down payment help does not add to the ROOTs total. Under the federal duplication of benefit rule, the City subtracts it, so a buyer approved for $35,000 who also gets a $5,000 grant receives $30,000 from ROOTs. The City's own $5,000 First Time Home Buyer Program cannot be used to buy a ROOTs home at all. Any other second lien must sit behind ROOTs, which must be senior to all debt except the first mortgage. Call 319-286-5196 before applying elsewhere.
The Iowa Mortgage Credit Certificate, which can cut federal taxes by up to $2,000 a year, currently has no funding for new certificates, according to IFA. Gift funds from parents or relatives are allowed, but they must be disclosed and are counted in the household income calculation. IFA changes its assistance options on November 2, 2026, so confirm current terms with the IFA Homeownership Team at 515-348-6200.
Pros and Cons
The Cedar Rapids ROOTs Program's biggest advantage is price: a new-construction home capped at $175,000 after the CDBG-DR subsidy, against a Cedar Rapids median of about $190,000. Up to $35,000 in assistance is seven times the City's $5,000 First Time Home Buyer award, and it is fully forgiven after five years at 1/60th per month. The City's eligibility list has no first-time buyer rule, so repeat buyers under 80% of AMI can apply. The open Shamrock Village and Ginkgo Ridge units include garages, and Ginkgo Ridge adds a storm shelter and one ADA single-family unit.
The biggest limitation is supply. Only eight developments are listed, Foxtail Ridge and Kirkwood Village are fully pending, three others are sold, and homes go first come, first served. The 15-year deed restriction is the next catch: you must live in the home for 15 years, cannot rent it out, and can sell only to an income-qualified buyer unless you repay the remaining subsidy. Refinancing is limited for five years, the award shrinks dollar for dollar with other grants, and the 80% AMI cap is strict. Buyers who want an existing home should compare the City's $5,000 program or IFA FirstHome.
Frequently Asked Questions
Do I have to be a first-time homebuyer for the Cedar Rapids ROOTs Program?+−
How much down payment assistance does the ROOTs Program give?+−
What is the income limit for ROOTs in Cedar Rapids?+−
Can I rent out or sell my ROOTs home?+−
Can I combine ROOTs with other down payment assistance programs?+−
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Program details last verified: October 16, 2026