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You’ve passed many milestones of firsts in your life, and holding the keys to your first home may be the best yet. With your local lender, realtor and the Iowa Finance Authority all on your team, you can rest assured knowing we’ve got you covered.
Interest rates are typically lower than the market rate and have fewer fees. Credit score does not affect the interest rate.
The amount of down payment is determined by loan type. Loans may require only 3% down payment and may include reduced mortgage insurance coverage for borrowers with lender’s qualifying income of less than 80% of the Area Median Income. Down payment and closing cost assistance programs are available to help cover upfront expenses.
Borrowers may request a free Iowa Title Guaranty Owner’s Certificate at closing. With this certificate, if a title issue arises Iowa Title Guaranty will be there to step in and assume attorneys’ fees, costs and expenses associated with defending the title to your home. While title defects are not common in Iowa, they do occur. At no cost to you, an Iowa Title Guaranty Certificate is more than worth it.
Varies by county and household size and ranges from $95,200-$132,710.
$481,000—may be up to $588,000 in targeted areas—use the eligibility checker below to determine if the home is located in one of the targeted areas.
Must be a first-time homebuyer. A first-time homebuyer is defined as not owning a 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 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).
The home must be occupied by the buyer as a primary residence within 60 days of closing.
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 loan type.
The maximum debt-to-income ratio is 50%.
Required on conventional loans only. If all borrowers are first-time homebuyers then only one of the borrowers must complete the education. More details and course options can be found here.
Interested homebuyers must apply for this financing by contacting an IFA participating lender.
The lender will collect the necessary documents to verify eligibility, process and underwrite the loan application.
If the homebuyer is eligible, the lender will guide them through the closing process and to collecting the keys to their first home.
We’re here to help you every step of the way. Pair one of our down payment assistance programs with your FirstHome mortgage to help with down payment and closing costs. The same FirstHome eligibility requirements apply.
GRANT: The down payment assistance grant provides home buyers with a $2,500 grant to assist with down payment and closing costs.
OR
LOAN: The 2nd Loan program offers a loan of up to 5% of the home’s sale price with no maximum and is repayable at time of sale, refinance or first mortgage paid in full. No monthly payment required!
The FirstHome Program connects first-time homebuyers with affordable mortgages and local lenders.
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Borrowers who buy their homes using the FirstHome, FirstHome Plus or the 2nd down payment assistance loan programs may be subject to recapture tax.
Borrowers repay the government a portion of their gain on the sale of their home, depending on (1) whether there is a gain on the sale, (2) the household income at the time of sale, and (3) if the sale occurs within nine years of buying the home. Recapture Tax is paid directly to the IRS when filing taxes for the year in which the home is sold.
Nothing in the Recapture Tax provisions should prevent borrowers from using IFA's FirstHome or FirstHome Plus Homebuyer Programs.
For IFA FirstHome, FirstHome Plus or the 2nd down payment assistance loans closed on or after November 14, 2011, if you are required to pay a Recapture Tax to the Internal Revenue Service (IRS), IFA will reimburse you for the actual amount of the Recapture Tax paid to the IRS. Please consult the IRS or a tax professional with any Federal Recapture Tax questions.
Must be a first-time home buyer (Defined as not owning your primary residence in the last three years). OR Be a military veteran 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).
For cases where borrower has no credit score, non-traditional credit documentation allowed in accordance with agency guidelines for the loan type.
These are minimum requirements; a higher credit score, a lower debt to income ratio, or a down payment greater than 3% may be required in some circumstances. Follow agency guidelines for loan type.
