Down payment assistance in Iowa
Iowa's primary statewide down payment assistance program, run by Iowa Finance Authority. Numbers and eligibility reflect the program's published 2025 guidelines.
FirstHome Plus
Grant (no repayment)- Maximum assistance
- $2,500 grant or $5,000 second-lien option
- Income limit
- Up to $134,560 (varies)
- Home price limit
- Up to $481,176
- First-time buyer
- Required
- Eligible loan types
- FHA, VA, USDA, Conventional
- •FirstHome program is for first-time buyers; Homes for Iowans is open to all.
- •DPA grant is non-repayable; second-lien option is 0% deferred.
How Iowa DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Iowa's FirstHome Plus pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Iowa's primary statewide DPA is FirstHome Plus from Iowa Finance Authority. $2,500 grant or $5,000 second-lien option. Many Iowa cities and counties also run additional DPA layered on top.
Yes. The FirstHome Plus requires that you have not owned a primary residence in the past 3 years. Veterans and target-area buyers are sometimes exempt.
Yes. FirstHome Plus works with these loan types: FHA, VA, USDA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
No. A grant has no repayment requirement, so it is not counted as debt for DTI purposes.
A grant is yours to keep with no payback obligation.