Products

First-Time Home Buyer

Owning your first home is an exciting dream, but often people are unsure how to get there. The Lenders at American State Bank are well-equipped and eager to make this dream a reality. There are many questions or concerns that a first-time home buyer may have, and we have answers, the main one is “How much money do I need to save before I can buy my first home?” Many people believe they need a large down payment before they can think about buying, but we are excited to share options that require much less!

Through Freddie Mac’s Home Possible and HomeOne programs, we can provide fixed rate financing to borrowers with a substantially lower down payment. Another option to make buying a first home more affordable is to connect with a grant program that helps with the down payment and closing costs. In 2018, American State Bank helped 23 borrowers secure $115,000 in grants through the HomeStart program with Federal Home Loan Bank of Des Moines. The maximum grant in 2018 was $5,000 per borrower. For 2019 this maximum is increasing to $7,500.

We are also excited to promote the planning and saving for a first home with a creative product that connects multiple generations. For first-time home buyers looking to buy in Iowa, we can offer a unique savings account just for you1. ASB provides a $100 account opening bonus once you meet the requirements. We also provide you with $250 off your loan origination fee when you finance your home with us. The benefits don’t stop there; the State of Iowa has a potential tax benefit as well. On your Iowa income tax return, married filers can deduct up to $4,000 annually and single filers up to $2,000 annually from contributions to this savings account. The account holder(s) receive the tax benefit making it a great way for parents or grandparents to set up an account and help plan for the future purchase of an Iowa home for your beneficiary.

American State Bank is the place for first-time home buyers with a variety of programs to fit your needs and knowledgeable lenders to walk with you on the path to home ownership. If you have friends, family, or acquaintances that are considering buying a home, tell them about the great programs we have to offer! We are happy to help everyone.

-Eric Vande Hoef, VP/Retail & Commercial Lending

1) Available with our money market or statement savings account. $1,000 min. deposit for money market, $50 min. deposit for statement savings. Fees may reduce earnings. To obtain the account opening bonus and discount on loan origination fees, $2,000 must be deposited into a new savings account at account opening on or after May I, 2019, and $2,000 balance must be maintained in account for at least 90 days. Only one bonus and discount allowed per account beneficiary. The bonus will be deposited into your account within I 0 business days. Offer available May I, 2019 – April 30, 2020. See your tax adviser for details about potential tax benefits.