Iowa first-time home buyer programs
Iowa Finance Authority lists 4 programs that help buyers in Iowa with the down payment or closing costs. Amounts and terms are shown as the agency publishes them.
- Programs from the agency
- 4
- Biggest amount listed
- $5,000
- First-time buyers only
- 2 of 4 programs
- Income caps
- Up to $171,360
Down payment assistance programs in Iowa
| Program | Amount | Grant or loan | Income limit | First-time buyers only |
|---|---|---|---|---|
| FirstHome Down Payment and Closing Costs Assistance Grant. With an Iowa Finance Authority (FirstHome) mortgage; credit score 640+; price limit $566,000; up to $692,000 in targeted areas. | Up to $2,500 | Grant | Varies by county and household size; $102,100 to $171,360 | Yes, with exceptions |
| FirstHome 2nd Loan Program. With an Iowa Finance Authority FirstHome mortgage; credit score 640+; price limit $566,000; up to $692,000 in targeted areas. | Up to 5% of the price or value | Deferred loan: No monthly payments. You repay it when you sell, refinance or pay off your main home loan. | Varies by county and household size; $102,100 to $171,360 | Yes, with exceptions |
| Homes for Iowans 2nd Loan Program. With an Iowa Finance Authority (Homes for Iowans) mortgage; credit score 640+; price limit $692,000. | Up to 5% of the price or value | Deferred loan: No monthly payments. You repay it when you sell, refinance or pay off your main home loan. | $171,360 | No |
| Military Homeownership Assistance Program. Only for service members, veterans and surviving spouses who served active duty Aug 2, 1990 to Apr 6, 1991 or Sept 11, 2001 to present. With Optional; may use FirstHome or Homes for Iowans; homebuyer course. | Up to $5,000 | Grant | Ask the agency | No |
Usually, "first-time buyers only" means you haven't owned a home during the past three years, though every program sets a rule of its own. The name of each program links to a Iowa Finance Authority page that says whether applications are open right now. Compare down payment assistance programs across all states, or ask a lender that works with Iowa's programs.
How do you repay Iowa's programs?
- Grant: money you never pay back, used for the down payment or closing costs.
- Deferred loan: nothing to pay each month, but the full amount comes due when you sell, refinance or pay the first mortgage off.
How does your income compare with Iowa's caps?
Every program has its own income cap, which the table shows, and the exact chart is on that program's agency page. Use the HUD income limits lookup (FY2026) to find the figure for your county and household size. If a program relies on its own county chart or Freddie Mac's, the result can differ from HUD's number, and the agency's chart decides.
| HUD area | Median family income | HUD low-income limit |
|---|---|---|
| Des Moines-West Des Moines | $116,400 | $93,100 |
| Omaha-Council Bluffs | $114,000 | $91,200 |
| Waterloo-Cedar Falls | $91,000 | $75,300 |
| Ames | $122,400 | $97,900 |
| Iowa City | $121,400 | $97,100 |
HUD uses about 80% of the median as a starting point. Its own caps can hold that number down, including a yearly cap on increases, so the low-income limit is under 80% in a few areas.
Talk to a lender that works with Iowa programs
These programs are paid out through the agency's approved lenders, so the lender is your next step. Tell us where you're buying and a lender that works with Iowa's programs can explain which ones fit you.
Rather not call? Send your details and the lender will reach you.
Are you buying near a state border?
Illinois, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin or programs for all 50 states plus DC.