Financial Assistance for Homebuyers in Iowa
FirstHome Plus is a down payment assistance (DPA) program that works in conjunction with the Iowa Finance Authority’s FirstHome Program, a 30-year, fixed-rate mortgage. Eligible applicants can receive up to $2,500 in the form of a grant to help cover the down payment and closing costs associated with the first mortgage. All applicants are limited to a one-time use of this program, and those who have previously used a Plus grant are not eligible.
In order to receive assistance under the FirstHome Plus program, all applicants must meet certain requirements. The program is only available to:
- first-time homebuyers (individuals who have not owned a home in the last three years)
- military veterans with a discharge other than dishonorable who have not previously used a mortgage revenue bond program to finance a home purchase, or
- those purchasing a home in a Targeted Area.
Any property being purchased with program funds must serve as the homebuyer’s primary residence, and must not exceed the program’s purchase price limit of $253,000.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.
(Note: These figures were accurate at the time of publication and may no longer be current - Visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Iowa
The City of Cedar Rapids offers individuals down payment assistance in the form of the First Time Home Buyer Program. Funds are available on a first come, first served basis, and applications are reviewed in order.
This program provides long-term, zero-interest loans of up to $5,000 to help cover down payment and closing costs associated with purchasing a new home. In the case of household income less than 30 percent of the area median income (AMI), individuals may also receive up to $25,000.
In an effort to assist individuals achieve their homeownership goals the Iowa Finance Authority offers the FirstHome Plus program, which provides down payment assistance to eligible first-time home buyers who are purchasing a primary residence in Iowa.
In an effort to help families achieve their homeownership dreams, the Federal Home Loan Bank (FHLB) of Des Moines offers individuals the Home$tart and Home$tart Plus Programs, which assist by providing down payment and closing cost assistance.
The Waterloo Down Payment Assistance Program provides applicants with assistance funds via a forgivable, second mortgage. If an applicant chooses to sell the home in under five years, the loan amount is recaptured and used to replenish the loan fund.
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