Iowa First-Time Home Buyer Programs 2026
FirstHome, Homes for Iowans, the grants that are genuinely grants, and the income limits that decide which program you qualify for.
Iowa FirstHome program
FirstHome is the Iowa Finance Authority’s mortgage revenue bond program for first-time buyers. It pairs a below-market interest rate with the option of down payment help, and your credit score does not change the rate you are offered.
The essentials: a minimum 640 credit score, a maximum 50% debt-to-income ratio, 25- or 30-year terms, new purchases only, and occupancy as your primary residence within 60 days of closing. Homebuyer education is required for all borrowers. Down payments can go as low as 3%.
Homes for Iowans for repeat buyers
Homes for Iowans is the companion program for buyers who do not meet the first-time definition. It serves first-time and repeat buyers alike, and it replaces FirstHome’s county-varying income band with a single statewide limit.
Requirements are otherwise the same: 640 minimum credit score, new purchase only, 25- or 30-year terms, primary residence, and homebuyer education. If you have owned a home in the last three years and are not buying in a targeted area, this is the program to ask your lender about.
Down payment and closing cost assistance
Iowa offers three distinct forms of help, and the difference between them matters a great deal at resale.
| Assistance | Amount | Repayment |
|---|---|---|
| FirstHome Grant | $2,500 | None — this is a grant |
| Military Homeownership Grant | $5,000 | None — this is a grant |
| 2nd Loan | Up to 5% of sale price or appraised value, whichever is lower, with no maximum | Repayable in full at sale, refinance, or payoff of the first mortgage. No monthly payments. |
The 2nd Loan is frequently described as assistance that you never pay back. That is not right. There are no monthly payments, which is why the description spreads, but the full balance comes due the day you sell or refinance. Budget for it as a lien against your equity, not as a gift.
The $5,000 Military Homeownership Grant can be combined with either FirstHome or Homes for Iowans. FirstHome buyers choose the $2,500 grant or the 2nd Loan, not both; Homes for Iowans offers the 2nd Loan only. Terms are published by the Iowa Finance Authority.
Income and purchase price limits
| Program | Household income limit | Purchase price limit |
|---|---|---|
| FirstHome | $102,100 to $171,360, varying by county and household size | $566,000, or up to $692,000 in targeted areas |
| Homes for Iowans | $171,360 statewide | $692,000 |
FirstHome’s band is the one to watch: because it varies by both county and household size, two families with identical incomes can get different answers depending on where they are buying and how many people are in the household. Your lender checks the applicable figure against IFA’s eligibility tool before you write an offer.
Who counts as a first-time buyer
Iowa’s definition is broader than the phrase suggests. You satisfy it if any one of the following is true:
- You have not owned your primary residence at any point in the last three years.
- You are a military member with an honorable discharge who has not previously used a mortgage revenue bond program such as FirstHome.
- You are buying in a designated Targeted Area, which removes the first-time requirement entirely.
The second and third routes are the ones buyers most often miss. A veteran who owned a home five years ago may still qualify, and so may a repeat buyer purchasing in the right census tract.
How to apply
IFA does not lend directly. You apply through a participating lender, and the program layer sits on top of an ordinary mortgage application.
- Check the income and purchase price limits for the county you are buying in.
- Confirm your credit score meets the 640 floor and your debt-to-income ratio is within 50%.
- Contact a participating lender and say explicitly that you want to be considered for FirstHome or Homes for Iowans — the programs are not applied automatically.
- Ask the lender to reserve any grant funds at application. The Military Homeownership Grant in particular is limited to available appropriations.
- Complete the purchase and occupy the home as your primary residence within 60 days of closing.
