Iowa Finance Authority (IFA) Programs:
Updated May 2026IFA runs statewide mortgage products and down payment/closing cost assistance through participating lenders. The main IFA offerings are the FirstHome and Homes for Iowans products (includes 25 or 30 year terms), plus a Military Homeownership Assistance grant. Check IFA for current interest rates, county income and purchase limits, and participating lenders at opportunityiowa.gov/housing/homeownership-programs or contact an IFA approved lender.
IFA First-Time Homebuyer Mortgage Programs:
Eligibility: First-time status is generally defined as not owning a primary residence in the last three years (waived in targeted areas or for qualifying military buyers).
Offerings: Agency-backed 25/30-year fixed mortgages (conventional, FHA, VA/USDA as appropriate) with below-market features through IFA participating lenders.
Key program numbers:
- Household income limits vary by county. IFA published ranges for 2025 that run roughly from about $99,800 up to $173,460 depending on county and household size; use IFA tools to check your county. (FirstHome limits).
- Home purchase limits: FirstHome examples show ~$544,000 (may be higher in targeted areas) and Homes for Iowans up to $665,000 in some targeted areas. See IFA for county/area specifics. (Homes for Iowans).
- Minimum credit score: IFA lists 640 as the program minimum for its first mortgage products (individual lender overlays may be higher).
- Debt-to-income: maximum DTI commonly 50% (manual underwrite scenarios often use 45%—lenders decide on compensating factors).
- Homebuyer education: required for most IFA borrowers; free IFA approved courses are available. (IFA homeownership).
Down Payment Assistance (DPA) Options:
FirstHome DPA: Two options under FirstHome—
- Grant: $2,500 toward down payment and closing costs (no repayment).
- 2nd Loan: Up to 5% of the home sale price or appraised value as a deferred second loan; repayable when you sell, refinance, or pay off the first mortgage (no monthly payment; subordination rules apply).
Military Homeownership Assistance Program:
Description: IFA offers a separate Military Homeownership Assistance grant (example: $5,000) that may be used for down payment and closing costs and can be stacked with certain IFA 2nd-loan options where permitted. See IFA pages for current availability and any funding limits. (IFA DPA details).
Local & Regional Programs (examples and where to check):
Cities, counties, and nonprofit partners often run additional deferred or forgivable assistance. Funding and rules change frequently; below are official places to start.
Statewide partner: FHLB Des Moines Home$tart
The Federal Home Loan Bank of Des Moines funds Home$tart grants that local member lenders and nonprofits distribute. In many markets Home$tart or Home$tart Plus awards can reach up to $15,000 (subject to member availability and reservation windows). Work with a participating lender to see if funds are available. (fhlbdm.com Home$tart).
Des Moines / Polk County
Des Moines channels much of its homebuyer assistance through nonprofit partners such as HOME, Inc., Neighborhood Finance Corporation, and other HUD/CDBG funded programs. Assistance often includes deferred forgivable loans or grants tied to specific homes or new construction projects; amounts and eligibility are project specific. Check city consolidated plan or nonprofit pages for current offers.
Cedar Rapids / Linn County
Cedar Rapids operates first-time homebuyer and rehabilitation programs via its Community Development plans. See the City of Cedar Rapids housing action plan for program priorities and expected down payment assistance availability. (Cedar Rapids Annual Action Plan).
Quad Cities / Davenport area
The Quad Cities region uses a mix of local housing authority and nonprofit funds. Local grants and deferred loans are available in some jurisdictions, but amounts and rules vary. Contact the local housing authority or a participating lender for the most current city/county offer in Davenport, Moline, Bettendorf, or Rock Island.
Additional Information:
- USDA Loans: USDA Rural Development loans can offer 0% down for eligible properties in qualified rural areas. Check county property eligibility and income caps at the official USDA RD site. (rd.usda.gov).
- VA Loans: VA-guaranteed loans typically allow eligible veterans and service members to buy with no down payment; lenders will verify entitlement and other eligibility. (va.gov home loans).
- FHA Loans: FHA loans commonly allow a minimum down payment of 3.5% for borrowers with credit scores about 580; lower scores generally require larger down payments and lender overlays may apply. Confirm with your lender and HUD guidance. (hud.gov).
- Mortgage Credit Certificate (MCC): IFA lists MCC program resources but notes funding availability can be limited; check IFA MCC page for current status.
These programs are actively used in 2026 but funding windows, income limits, and DPA availability change often. Start with an IFA participating lender or the official IFA pages: opportunityiowa.gov/housing/homeownership-programs and the DPA page at opportunityiowa.gov/housing/homeownership-programs/down-payment-and-closing-costs-programs.
Program details, income limits, interest rates, and availability may change. Always confirm the latest requirements with the official program administrator or participating lender.
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