Iowa Finance Authority
Programs

Down Payment & Closing Cost Assistance Programs 


NEW - $1,500 Conventional Closing Cost Assistance

The Iowa Finance Authority (IFA) is pleased to announce that eligible home buyers using conventional financing may now benefit from $1,500 in closing cost assistance. The closing cost assistance is available for a limited time only and is expected to assist approximately 230 home buyers. Home buyers interested in using this assistance must meet the income limit eligibility criteria available here

More information and instructions for using
the $1,500 Conventional Closing Cost Assistance are available here.

 

DOWN Payment Assistance

The Iowa Finance Authority offers two programs that provide home buyers with $2,500 for down payment and closing costs assistance when used in conjunction with the FirstHome or Homes for Iowans mortgage programs. 

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

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

 Eligibility   

  FirstHome Homes for Iowans
Household Income Limit See here $121,520
Home Purchase Price Limit $253,000 $310,000
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).
OR
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.
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).  

 Other Eligibility Factors 

  • The home must be occupied by the borrower as a primary residence immediately after 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 ratio of 45%**
  • Borrower’s are limited to one-time use of the FirstHome Plus and Homes for Iowans Plus programs.

* 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 and/or a lower debt to income ratio 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 Reimbursement 

  • In some specific and rare instances, home buyers who use FirstHome or FirstHome Plus may be subject to recapture tax, in which case, the Iowa Finance Authority will reimburse the homeowner for loans that closed on or after November 14, 2011.
Notice Available Funds
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Effective 10.9.17
 
Military Homeownership Assistance (MHOA)$475,323
 
$1,500 Conventional Closing Cost Assistance (CCA): $250,500
 
Our regular down payment assistance programs have funds available on a consistent basis
 
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