The FirstHome Program connects first-time homebuyers with affordable mortgages and local lenders.
Benefits to FirstHome
- Interest Rates
Interest rates are typically lower than the market rate and have fewer fees. Credit score does not affect the interest rate. - Down Payment
The amount of down payment is determined by loan type. Loans may require only 3% down payment and may include reduced mortgage insurance coverage for borrowers with lender’s qualifying income of less than 80% of the Area Median Income. Down payment and closing cost assistance programs are available to help cover upfront expenses. - Free Iowa Title Guaranty Owner's Certificate
Borrowers may request a free Iowa Title Guaranty Owner’s Certificate at closing. With this certificate, if a title issue arises Iowa Title Guaranty will be there to step in and assume attorneys’ fees, costs and expenses associated with defending the title to your home. While title defects are not common in Iowa, they do occur. At no cost to you, an Iowa Title Guaranty Certificate is more than worth it.
Eligibility
- Household Income Limit
Varies by county and household size and ranges from $96,500-$131,790. - Home Purchase Limit
$510,000—may be up to $624,000 in targeted areas—use the Eligibility Quick Check below 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 to finance a home purchase.
OR
Purchase a home in a Targeted Area (please use the Eligibility Quick Check tool 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 loan type. - Debt-to-Income Ratio
The maximum debt-to-income ratio is 50%. - Homebuyer Education
Required on conventional loans only. If all borrowers are first-time homebuyers then only one of the borrowers must complete the education. See more details and course options.
Application Process
- Contact IFA Participating Lender
Interested homebuyers must apply for this financing by contacting an IFA participating lender. - Verification of Eligibility
The lender will collect the necessary documents to verify eligibility, process and underwrite the loan application. - Closing
If the homebuyer is eligible, the lender will guide them through the closing process and to collecting the keys to their first home.