Guides / Down Payment Assistance / Iowa

Down Payment Assistance in Iowa

Iowa's down payment assistance is run at the state level by the Iowa Economic Development & Finance Authority (successor to the Iowa Finance Authority, now housed under opportunityiowa.gov), not a single standalone program but a set of options layered onto its FirstHome and Homes for Iowans first-mortgage products. Buyers choose between a $2,500 non-repayable grant or a deferred second loan worth up to 5% of the purchase price (due at sale/refinance/payoff), and eligible veterans/military can stack an additional $5,000 grant. All require a 640 minimum credit score, max 50% DTI, and 2026 county/household-size-based income limits ranging from $102,100 to $171,360, with home price caps of $566,000 (FirstHome) to $692,000 (targeted areas/Homes for Iowans). Separately, some Iowa cities/regions (e.g., a new Eastern Iowa HOME-funded program announced April 2026 via the East Central Iowa Council of Governments, and Iowa City's own down payment assistance program) supplement these state offerings locally.

Programs

FirstHome Down Payment & Closing Cost Assistance (Grant option)
Iowa Economic Development & Finance Authority (formerly Iowa Finance Authority), operated via opportunityiowa.gov, delivered through participating lenders
Amount: $2,500 grant toward down payment and closing costs (paired with a FirstHome first mortgage); no repayment required
Type: Grant (forgivable, non-repayable)
Must be a first-time home buyer (has not owned a primary residence in the last 3 years), a qualifying military member/veteran, or purchasing in a designated Targeted Area. Minimum credit score 640 (non-traditional credit accepted if no score exists). Maximum DTI 50%. Household income limit varies by county and household size, ranging from $102,100 to $171,360 for 2026. Home purchase price limit $566,000 ($692,000 in targeted areas). Must be primary residence.
FirstHome 2nd Loan Program
Iowa Economic Development & Finance Authority (opportunityiowa.gov), delivered through participating lenders
Amount: Second-mortgage loan of up to 5% of the home's sale price or appraised value (whichever is lower), no stated maximum dollar cap; 0% deferred-style structure with no monthly payments
Type: Deferred repayable second-mortgage loan
Same as FirstHome grant: first-time buyer (no primary residence ownership in prior 3 years), eligible veteran/military member, or Targeted Area purchase; minimum 640 credit score; max 50% DTI; income limits $102,100-$171,360 by county/household size; purchase price limit $566,000 ($692,000 targeted areas). Repayment due in full at sale, refinance, or payoff of the first mortgage.
Homes for Iowans 2nd Loan Program
Iowa Economic Development & Finance Authority (opportunityiowa.gov)
Amount: Second loan of up to 5% of home sale price or appraised value (whichever is lower), no maximum stated; deferred, no monthly payments
Type: Deferred repayable second-mortgage loan
Open to both first-time AND repeat home buyers (broader than FirstHome). Minimum 640 credit score, maximum 50% DTI. Household income limit up to $171,360. Home purchase price limit up to $692,000. Repayment due at sale, refinance, or mortgage payoff.
Military Homeownership Assistance Program
Iowa Economic Development & Finance Authority (opportunityiowa.gov)
Amount: $5,000 grant, stackable with FirstHome or Homes for Iowans financing
Type: Grant (non-repayable)
Eligible active-duty service members and veterans (non-dishonorable discharge); must be used alongside a FirstHome or Homes for Iowans first mortgage, so those programs' income limits, credit score (640 minimum), and DTI (50% max) requirements also apply.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

Related Resources
Property Taxes in IowaTransfer Tax & Closing Costs in IowaBuyer-Agent Agreements in IowaSeller Disclosure Laws in IowaFind Agents in IowaDown Payment Calculator