Iowa First-Time Home Buyer Programs and Assistance
Iowa Finance Authority (IFA) currently lists 5 programs for Iowa buyers, with down payment help up to 5% of the price (about $12,535 on a median-priced home) through FirstHome / Homes for Iowans 2nd Loan Program. Figures below were read from the agency's own pages on September 11, 2026.
Iowa first-time buyer programs open now
Iowa Finance Authority (IFA) is the state's housing finance agency (homebuyer programs page). It runs 3 down payment or closing-cost assistance programs alongside 2 below-market first mortgages. A first-time homebuyer is defined as not owning your primary residence in the last three years.
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| FirstHome Program source | First mortgage | First mortgage program; down payment assistance offered separately via FirstHome's Grant or 2nd Loan options (see below) | Yes | 640 | $102,100 to $171,360 depending on county and household size |
| FirstHome Down Payment and Closing Costs Assistance - Grant source | Grant (no repayment) | $2,500 flat grant | Yes | 640 | $102,100 to $171,360 depending on county and household size (same as FirstHome) |
| FirstHome / Homes for Iowans 2nd Loan Program source | Deferred second loan | Up to 5% of the home's sale price or appraised value (whichever is lower); no maximum dollar cap stated | Check | 640 | FirstHome: $102,100-$171,360 by county/household size; Homes for Iowans: $171,360 flat statewide cap |
| Homes for Iowans Program source | First mortgage | First mortgage program; down payment assistance via the 2nd Loan option (see above) | No | 640 | $171,360 flat statewide cap |
| Military Homeownership Assistance Program source | Grant (no repayment) | $5,000 flat grant | Check | n/a | Not itemized on the down payment/closing costs page; follows the paired mortgage program's limits |
- FirstHome Program. Terms: 25 or 30 year term, new purchase only (no refinances); interest rates typically below market with fewer fees; credit score does not affect the rate Purchase price limit: $566,000, up to $692,000 in targeted areas Must pair with: An IFA participating lender Homebuyer education: required Program page
- FirstHome Down Payment and Closing Costs Assistance - Grant. Terms: Grant; no repayment Purchase price limit: $566,000, up to $692,000 in targeted areas Must pair with: FirstHome Program first mortgage Homebuyer education: required Program page
- FirstHome / Homes for Iowans 2nd Loan Program. Terms: No monthly payments; repayment due at sale, refinance, or when the first mortgage is paid off; subordination is not permitted Purchase price limit: FirstHome: up to $692,000 in targeted areas ($566,000 base); Homes for Iowans: $692,000 flat statewide cap Must pair with: Either the FirstHome Program or the Homes for Iowans Program first mortgage (not both) Homebuyer education: required Program page
- Homes for Iowans Program. Terms: 25 or 30 year term, new purchase only (no refinances); reduced mortgage fees Purchase price limit: $692,000 flat statewide cap Must pair with: An IFA participating lender Homebuyer education: required Program page
- Military Homeownership Assistance Program. Terms: Grant for down payment and closing costs; can be combined with FirstHome and Homes for Iowans Purchase price limit: Not itemized on the down payment/closing costs page; follows the paired mortgage program's limits Must pair with: FirstHome or Homes for Iowans Program page
City and county programs in Iowa
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- Polk County (Des Moines metro): Polk County Down Payment Assistance Program. $30,000 deferred loan at 0.00% interest. Deferred second loan. Income limit: At or below 80% of Area Median Income. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Iowa's median-priced home (about $250,700), 3% down is roughly $7,521. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Iowa programs often add income and purchase-price limits, which is another reason to confirm the details with Iowa Finance Authority.
Other ways to save in Iowa
Buyer commission rebates are not available to most buyers in Iowa, so beyond Iowa Finance Authority assistance, your best levers are comparing lenders on rate and fees, shopping title and settlement services, and asking the seller for a closing-cost concession. See our Iowa closing-costs guide for the full picture.
Frequently asked questions
What first-time home buyer programs are available in Iowa?
Iowa Finance Authority (IFA) lists 5 programs: FirstHome Program, FirstHome Down Payment and Closing Costs Assistance - Grant, FirstHome / Homes for Iowans 2nd Loan Program, Homes for Iowans Program, Military Homeownership Assistance Program. Down payment help runs up to 5% of the price (about $12,535 on a median-priced home). Polk County (Des Moines metro) also run local down payment programs.
How much down payment assistance can you get in Iowa?
Up to 5% of the price (about $12,535 on a median-priced home) through FirstHome / Homes for Iowans 2nd Loan Program (deferred second loan). Other Iowa programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Iowa?
Not for every program. 1 of 5 Iowa programs are open to repeat buyers. A first-time homebuyer is defined as not owning your primary residence in the last three years. This requirement is waived for a military member with an other-than-dishonorable discharge who has not previously used a mortgage revenue bond program, or for a purchase in a Targeted Area (source: opportunityiowa.gov/housing/homeownership-programs/firsthome-program).
How much down payment do you need in Iowa?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Iowa's median-priced home (about $250,700), 3% is roughly $7,521. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Iowa programs also have income and purchase-price limits, so check with Iowa Finance Authority.
Can I combine assistance with a buyer rebate in Iowa?
Iowa restricts buyer commission rebates to limited (dual-agency) cases, so most buyers will rely on Iowa Finance Authority assistance and negotiating rather than a rebate.
Official sources
- Iowa Finance Authority (IFA)
- FirstHome Program | Economic Development & Finance Authority
- Down Payment and Closing Costs Programs | Economic Development & Finance Authority
- Homes for Iowans | Economic Development & Finance Authority
- Mortgage Credit Certificate Program | Economic Development & Finance Authority
- Polk County (Des Moines metro): Polk County Down Payment Assistance Program
- Consumer Financial Protection Bureau: down payment options and how to prepare
Iowa program details last verified against Iowa Finance Authority on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Iowa Finance Authority and your lender before you rely on them.
See first-time buyer programs in all states