Down Payment and Closing Costs Programs

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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.

FirstHome

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.

FirstHome Down Payment and Closing Costs Assistance Options

  • Grant
    The down payment and closing costs assistance grant provides homebuyers with a $2,500 grant to assist with down payment and closing costs.
  • 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 is paid in full. No monthly payment required!

FirstHome Eligibility Requirements

  • Household Income Limit
    Maximum household income limits vary by county and range from $96,500 – $114,600 for a household of two.
  • Home Purchase Price Limit
    $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.

  • Real Estate History
    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).

  • Occupancy
    The home must be occupied by the buyer as a primary residence within 60 days of closing.
  • Credit Score
    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.
  • Debt-to-Income Ratio
    The maximum debt-to-income ratio is 50% with an approve/eligible (Manual underwriting remains at 45%)

  • Get Started

     

Homes for Iowans

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.

Homes for Iowans Down Payment and Closing Costs Assistance

  • 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 is paid in full. No monthly payments required!

Homes for Iowans Eligibility Requirements

  • Household Income Limit
    $163,800
  • Home Purchase Price Limit
    $624,000
  • Real Estate History
    Homes for Iowans is available to first-time and repeat homebuyers who are purchasing a primary residence in Iowa.
  • Occupancy
    The home must be occupied by the buyer as a primary residence within 60 days of closing.
  • Credit Score
    All loans subject to a minimum 640 credit score.
  • Debt-to-Income Ratio
    The maximum debt-to-income ratio is 50% with an approve/eligible (Manual underwriting remains at 45%)
  • Get Started

Military Homeownership Assistance Program

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.

Combined Down Payment Assistance

This 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.

Combine Programs to get $10,000

This example outlines someone who qualifies for the Military Homeownership Assistance and 2nd Loan opportunity.

  • 2nd Loan
    $5,000
  • Military Homeownership Assistance
    $5,000
  • Total = $10,000