Down Payment Path

Down Payment Assistance Programs in Iowa

Iowa offers several programs to assist homebuyers with down payments and closing costs. These initiatives are designed to support a wide range of buyers, ensuring that both first-time and repeat buyers can achieve their homeownership goals in the Hawkeye State.

Homes for Iowans Program

The Homes for Iowans Program, provided by the Iowa Finance Authority (IFA), helps buyers cover the upfront costs of purchasing a home.

  • Offers up to $2,500 in cash assistance for down payments and closing costs.
  • Available for both first-time and repeat homebuyers.
  • Supports FHA, VA, USDA, and conventional loans through participating lenders.
  • Income and purchase price limits apply, but they are set to include a broad range of buyers.

FirstHome Program

The FirstHome Program is primarily for first-time buyers but offers benefits for others in targeted areas.

  • Provides competitive, fixed-rate mortgage options.
  • Can be paired with down payment assistance programs for additional support.
  • Income and purchase price limits apply, with higher limits in targeted areas.

USDA Rural Development Loans

For buyers in rural areas of Iowa, the USDA Rural Development Loan provides affordable financing without requiring a down payment.

  • Available to low- and moderate-income buyers in USDA-eligible areas.
  • Flexible credit requirements and competitive interest rates.
  • Can be combined with state and local assistance programs to cover closing costs.

Mortgage Credit Certificate (MCC)

The Mortgage Credit Certificate program offers tax savings for homebuyers, reducing the overall cost of homeownership.

  • Allows buyers to claim a federal tax credit for a portion of their annual mortgage interest.
  • Can be used in conjunction with IFA mortgage products and down payment assistance programs.
  • Income and purchase price limits apply.

Local Assistance Programs

Many cities and counties in Iowa provide additional support to homebuyers through grants or low-interest loans.

  • Programs in areas such as Des Moines, Cedar Rapids, and Davenport offer financial assistance for down payments and closing costs.
  • Some local initiatives provide incentives for public service workers or purchases in specific neighborhoods.
  • Eligibility criteria and funding levels vary by location.

Iowa’s down payment assistance programs are designed to make homeownership more affordable by reducing the financial burden of upfront costs. Whether you’re buying your first home or upgrading, these programs can help you achieve your goal of owning a home in the Hawkeye State.