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 and closing costs assistance programs in conjunction with our mortgage programs, homebuying is affordable and easy.
The FirstHome program can either give you:
A down payment and closing costs assistance grant OR a 2nd Loan program loan, not both.
Please note: You cannot combine FirstHome down payment and closing costs options with Homes for Iowans down payment and closing costs options.
The down payment and closing costs assistance grant provides homebuyers with a $2,500 grant to assist with down payment and closing costs.
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 is paid in full. No monthly payment required!
Maximum household income limits vary by county and range from $96,500 – $114,600 for a household of two.
$510,000. May be up to $624,000 in targeted areas – use the Eligibility Quick Check 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 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 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 the loan type.
The maximum debt-to-income ratio is 50% with an approve/eligible (Manual underwriting remains at 45%)
The Homes for Iowans program offers the 2nd loan down payment and closing costs assistance option.
Please note: You cannot combine Homes for Iowans down payment and closing costs options with FirstHome down payment and closing costs options.
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 is paid in full. No monthly payments required!
$163,800
$624,000
Homes for Iowans is available to first-time and repeat homebuyers who are purchasing a primary residence in Iowa.
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.
The maximum debt-to-income ratio is 50% with an approve/eligible (Manual underwriting remains at 45%)
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 DetailsThis down payment and closing cost assistance can be combined with IFA’s other programs.
Here is an example of how you can combine IFA programs.
This example outlines someone who qualifies for the Military Homeownership Assistance and 2nd Loan opportunity.
$5,000
$5,000
