First-Time Home Buyer Programs in Iowa

Iowa Finance Authority (IFA) Programs:

FirstHome Program:

Eligibility: First-time buyers (no homeownership in last 3 years), veterans, or buyers in targeted areas.
Offerings: 30‑year fixed mortgage (FHA, VA, USDA, or conventional) with either a $2,500 grant or up to 5% of purchase price as a second loan (no interest, repayable on sale/refinance).
Requirements:

• Income must not exceed county limits ($99,800–$173,460) — 2025 limits & eligibility.
• Credit score ≥ 640 (non-traditional credit allowed if no score).
• Debt-to-income ratio ≤ 50% (≤ 45% with manual underwriting).
• Homebuyer education required for conventional loans.

Homes for Iowans Program:

Benefits: 30‑year fixed mortgage with up to 5% of purchase price as a second loan (no interest, repayable upon sale or refinance).
Eligibility: Available to first-time and repeat buyers; income limit $173,460; purchase price cap $665,000—see program details.

Military Homeownership Assistance:

Description: $5,000 grant for eligible veterans, active-duty service members, or surviving spouses; must pair with FirstHome or Homes for Iowans mortgage. Funds fully reserved for FY 2025 as of April 7. IFA homeownership programs.

Local Programs:

Des Moines

Des Moines Homebuyer Assistance: Grants or forgivable loans up to $15,000 for buyers ≤ 80% AMI, provided through nonprofit partners.

Cedar Rapids

First Time Home Buyer Program: Up to $14,999 forgivable loan (5-year) for first-time buyers ≤ 80% AMI; applications open annually in March.

Iowa City

Down Payment Assistance: Up to $24,999 forgivable over 10 years; income limit 80% AMI; financing must go through GreenState or Hills Bank.

Additional Information:

• Mortgage Credit Certificate (MCC): Up to $2,000 annual federal tax credit on mortgage interest — limited funding.
• USDA Loans: Zero-down mortgages for rural properties.
• VA Loans: Zero-down mortgages for eligible veterans or active military.
• FHA Loans: Minimum 3.5% down for credit ≥ 580 (10% if lower).