Iowa Finance Authority

Affordable Mortgage Programs 

The Iowa Finance Authority offers two mortgage programs for Iowa home buyers. Both programs provide 30-year, fixed rate mortgages. Loans may be conventional or loans backed by the federal government.

 FirstHome Program
The FirstHome program is available to eligible first-time home buyers who are purchasing a primary residence in Iowa.

 Homes for Iowans Program 
The Homes for Iowans program is available to eligible first-time and repeat home buyers who are purchasing a primary residence in Iowa.


  • Interest rates are typically lower than the market rate, 30 year terms and have fewer mortgage fees.
  • No minimum down payment. The amount of down payment is determined by loan type.
  • Conventional loan products available only through IFA which allow only 3% down payment** and include reduced or no mortgage insurance fees.
  • Interest rates do not change based on the qualified borrower's credit rating.
  • Borrowers may request a free Iowa Title Guaranty Owner's Certificate. This Certificate protects the borrower's interest in the property's title, even after the home is sold. What's more, if a title defect is identified, Iowa Title Guaranty becomes the borrower's free legal defense.


  FirstHome Homes for Iowans
Household Income Limit See here $133,980
Home Purchase Price Limit $283,000 $346,000
Must be a First-Time Home Buyer Yes No

Use our eligibility quick check to see if you may be eligible.


 *First-Time Home Buyer Status:

Must be a first-time home buyer (Defined as not owning your primary residence in the last three years).
Be a military veteran with discharge of other than dishonorable and not previously used a mortgage revenue bond program such as FirstHome previously to finance a home purchase.
Purchase a home in a Targeted Area (please use the eligibility quick check tool to determine if you're purchasing in a Targeted Area).  

 Other Eligibility Factors 

  • The home must be occupied by the borrower as a primary residence within 60 days of closing.
  • Must demonstrate an ability to repay the loan and have an acceptable credit history.
  • All loans subject to a minimum 640 credit score* and a maximum debt to income ration of 45%**
  • Maximum debt-to-income ratio of 45 percent.

*For cases where borrower has no credit score, non-traditional credit documentation allowed in accordance with agency guidelines for the loan type. 
**Note: These are minimum requirements; a higher credit score, a lower debt to income ratio, or a down payment greater than 3% may be required in some circumstances. Follow agency guidelines for loan type.

 Application Process 
The Iowa Finance Authority mortgage programs provide Iowa home buyers with all the benefits of our mortgage financing programs as well as the convenience of working with a local lender.

  • Interested home buyers must apply for this financing by contacting an IFA Participating Lender
  • The IFA Participating Lender takes the loan application, collects verification of eligibility and funds the loan and grant at closing. 
  • After closing, the lender provides all the necessary documentation to IFA to secure reimbursement of the grant funds and for delivery and purchase into the program. 

 Recapture Tax  

  • Borrowers who buy their homes using the FirstHome or FirstHome Plus Homebuyer Programs may be subject to recapture tax.  

    Borrowers repay the government a portion of their gain on the sale of their home, depending on (1) whether there is a gain on the sale, (2) the household income at the time of sale, and (3) if the sale occurs within nine years of buying the home. Recapture Tax is paid directly to the IRS when filing taxes for the year in which the home is sold.

    Nothing in the Recapture Tax provisions should prevent borrowers from using IFA's FirstHome or FirstHome Plus Homebuyer Programs. 

    For IFA FirstHome or FirstHome Plus Loans closed on or after November 14, 2011, if you are required to pay a Recapture Tax to the Internal Revenue Service (IRS), IFA will reimburse you for the actual amount of the Recapture Tax paid to the IRS.  Please consult the IRS or a tax professional with any Federal Recapture Tax questions. 

Notice Learn More
As of 1:25 AM, January 28, 2020
Mortgage Rates starting at: 3.250 %
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