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Down Payment Programs

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You have plenty to worry about when buying a home. The Iowa Finance Authority is happy to take some of that off your hands. When you use one of our down payment programs in conjunction with our mortgage programs, home-buying is affordable and easy.

FirstHome

The FirstHome program can either give you:

A down payment assistance grant OR a 2nd Loan program loan, not both.

Please note: You cannot combine FirstHome down payment options with Homes for Iowans down payment options.

FirstHome Options

  • Grant The down payment assistance grant provides homebuyers with a $2,500 grant to assist with down payment and closing costs.
  • Loan The 2nd Loan program offers a loan of up to 5% of the home’s sale price or $5,000, (whichever is less) and is repayable at time of sale, refinance or first mortgage is paid in full. No monthly payment required!

FirstHome Eligibility Requirements

  • Household Income Limit Maximum household income limits vary by county and range from : $76,900-$95,700 for a household of two
    (view income limits for your household size and county here – quick check graphic)
  • Home Purchase Price Limit $283,000. May be up to $346,000 in targeted areas.
  • Real Estate History Must be a first-time homebuyer

    A first-time homebuyer is defined as not owning your primary residence in the last three years.

    OR

    Be a military member with discharge of other than dishonorable and not previously used a mortgage revenue bond program such as FirstHome previously to finance a home purchase.

    OR

    Purchase a home in a Targeted Area (please use the eligibility quick check tool to determine if you’re purchasing in a Targeted Area).
  • Occupancy The home must be occupied by the buyer as a primary residence within 60 days of closing.
  • Credit Score All loans subject to a minimum 640 credit score. For cases where borrower has no credit score, non-traditional credit documentation allowed in accordance with agency guidelines for the loan type.
  • Debt-to-Income Ratio The maximum debt-to-income ratio is 45%.
  • Get Started First Homes Ahead

Homes for Iowans

The Homes for Iowans program gives you the option of getting a:

Grant to assist with down payments OR a loan from the 2nd Loan program, not both.

Please note: You cannot combine Homes for Iowans down payment options with FirstHome down payment options.

Homes for Iowans Options

  • Grant The down payment assistance grant provides homebuyers with a $2,500 grant to assist with down payment and closing costs.
  • Loan The 2nd Loan program offers a loan of up to 5% of the home’s sale price or $5,000, (whichever is less) and is repayable at time of sale, refinance or first mortgage is paid in full. No monthly payments required!

Homes for Iowans Eligibility Requirements

  • Household Income Limit $133,980
  • Home Purchase Price Limit $346,000
  • Real Estate History Homes for Iowans is available to first-time and repeat homebuyers who are purchasing a primary residence in Iowa.
  • Occupancy The home must be occupied by the buyer as a primary residence within 60 days of closing.
  • Credit Score All loans subject to a minimum 640 credit score.
  • Debt-to-Income Ratio The maximum debt-to-income ratio is 45%.
  • Get Started New Homes Ahead

Military Homeownership Assistance Program

The Military Homeownership Assistance program provides a $5,000 grant to eligible service members and veterans for down payments and closing costs on qualifying homes. The funds may be used in conjunction with the FirstHome and Homes for Iowans programs.

Program Details

Combined Down Payment Assistance

This down payment assistance can be combined with IFA’s other programs. Additionally, the Mortgage Credit Certificate can credit you up to $2,000 per year.

Here is an example of how you can combine IFA programs.

Combine Programs to get $10,000

This example outlines someone who qualifies for the Military Homeownership Assistance and 2nd Loan opportunity.

  • 2nd Loan $5,000
  • Military Homeownership Assistance $5,000
  • Total $10,000

Reach out to our homeownership team:

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