FirstHome
IFA's program for first-time buyers, defined for most purposes as someone who has not owned a primary residence in the past three years. Income and purchase price limits apply and vary by county.
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Down payment helpDown payment assistance for Iowa buyers
There is real money available for Iowa buyers, and a lot of people who qualify never find out. Here is what exists and how eligibility actually works.
Where Iowa assistance comes from
The main source is the Iowa Finance Authority, a state agency that runs mortgage and down payment assistance programs for Iowa buyers. IFA does not lend directly. You get an IFA loan through a participating lender, which means the program has to be set up at application, not added later.
That timing detail matters more than anything else on this page. Assistance generally cannot be applied retroactively. If you are curious whether you qualify, the time to ask is before you apply, not after you are under contract.
The main programs
Homes for Iowans
Open to both first-time and repeat buyers, with its own income and purchase price limits. This is the path for people who have owned before and do not qualify as first-time.
Down payment assistance
IFA offers assistance paired with its mortgage programs, structured either as a grant or as a second loan depending on the option selected. Amounts and structures are set by IFA and change periodically.
Military Homeownership Assistance
A separate IFA program providing assistance to eligible service members and veterans, which in some cases can be combined with other IFA financing.
Program amounts and income limits change.
IFA updates figures periodically and limits vary by county and household size. Confirm current numbers directly with the Iowa Finance Authority or through a participating lender before you plan around them.
Talk it throughCurrent program figures
These are the numbers as published by the Iowa Finance Authority and verified in July 2026. IFA revises them periodically, so confirm anything you are planning around before you rely on it.
Grant option
A $2,500 grant toward down payment and closing costs. It is not repaid.
Second loan option
Up to 5% of the sale price or appraised value, structured as a second mortgage. You choose the grant or the second loan, not both.
Credit score
Generally a 640 minimum across IFA mortgage programs.
FirstHome price limit
$566,000 in non-targeted areas, $692,000 in targeted areas, for 2026.
Homes for Iowans limits
A $692,000 purchase price cap and a statewide income limit of $171,360 for 2026.
One program at a time
FirstHome assistance and Homes for Iowans assistance cannot be combined with each other.
FirstHome income limits vary by county rather than being set statewide. Current figures live at welcomehomeia.com.
How eligibility generally works
Most programs look at the same handful of things: household income against a county limit, the purchase price against a program cap, your credit and debt-to-income, whether the home will be your primary residence, and in some cases whether you have owned before. Homebuyer education is often required, and is usually a short online course.
The limits are the part that surprises people in both directions. Some buyers assume they earn too much and never check, when the limits are higher than expected. Others assume they qualify and find the county cap is tighter than they thought. Neither assumption is worth making without looking.
Assistance is not free money, exactly
Depending on the structure, assistance may be a grant that does not need to be repaid, or a second loan that is repaid when you sell, refinance, or pay off the first mortgage. Some programs forgive the assistance over time if you stay in the home. The differences matter, particularly if you might move within a few years.
Read the terms of the specific option you are offered. A good lender will walk you through what happens if you sell in year three versus year ten, because the answer is different across programs.
Beyond state programs
Some cities and counties run their own assistance programs, and some employers offer homebuyer benefits. Certain loan programs also allow gift funds from family members toward the down payment, subject to documentation rules. And VA and USDA financing can require no down payment at all for those who qualify, which solves the problem from a different direction.
Common questions
Questions people ask
Who qualifies for down payment assistance in Iowa?
Eligibility generally depends on household income against a county-specific limit, the purchase price against a program cap, credit and debt-to-income, and whether the home will be your primary residence. Some programs are limited to first-time buyers, defined as not having owned a primary residence in the past three years, while others are open to repeat buyers.
How much down payment assistance can I get in Iowa?
The Iowa Finance Authority sets assistance amounts, and they are adjusted periodically. Because the figures change, the current numbers should be confirmed with IFA or a participating lender rather than taken from a page that may be out of date.
Do I have to pay down payment assistance back?
It depends on the structure. Some assistance is a grant that is not repaid. Some is a second loan repaid when you sell, refinance, or pay off the first mortgage. Some is forgiven over time. Confirm which structure applies to the specific option you are offered.
Can I get assistance if I have owned a home before?
Possibly. IFA's Homes for Iowans program is open to repeat buyers. Additionally, many first-time buyer programs define first-time as not having owned a primary residence in the previous three years, so prior ownership does not automatically disqualify you.
Can I add assistance after I have already applied for my mortgage?
Generally no. Assistance programs need to be set up at application through a participating lender. This is the most common reason eligible buyers miss out, so it is worth asking about before you apply.
Next step
Talk it through before you commit
No cost, no obligation. Bring your questions and we will work out what actually fits your situation.
Phone: 712-830-0025
Email: bhaye@gokeymortgage.com
Office: 2370 NW 128th Street, Urbandale, IA 50322