Down payment assistance in Iowa

Up to 5% of the home's sale price or appraised value (whichever is lower), with no maximum. For reservations on or after November 2, 2026: 5% up to $15,000, or a new 3% option up to $10,000

A second mortgage with no monthly payments, paired with an IFA FirstHome or Homes for Iowans first mortgage. It is not forgiven: repayment is due on sale, refinance or payoff of the first mortgage, and subordination is not permitted. FirstHome buyers can instead take a $2,500 grant, but IFA is discontinuing that grant for reservations on or after November 2, 2026.

Who qualifies: FirstHome: first-time buyers (no primary residence in 3 years), eligible veterans, or buyers in targeted areas; income $102,100-$171,360 by county and household size; price limit $566,000 ($692,000 in targeted areas). Homes for Iowans: first-time and repeat buyers, income limit $171,360, price limit $692,000. Minimum credit score 640. Max DTI 50% (45% manual underwriting).

Iowa Finance Authority · Agency website → · Checked 2026-09-30

$5,000

A grant for down payment and closing costs for eligible service members and veterans. It can be combined with IFA's FirstHome or Homes for Iowans programs and the 2nd Loan. IFA says it is limited to funding availability.

Who qualifies: Eligible service members and veterans buying a qualifying home in Iowa. See IFA for service requirements.

Iowa Finance Authority · Agency website → · Checked 2026-09-30