July 7, 2026 – Buying your first home is one of the biggest milestones of your life, but for many Iowans, the upfront costs and the fear of qualifying can make it feel out of reach. That’s exactly what the Iowa Finance Authority’s FirstHome Program was designed to solve. If you’ve been dreaming of homeownership but aren’t sure you can afford it, this program might be the key that opens the door.
What Is the FirstHome Program?
The FirstHome Program is a state-backed mortgage program administered by the Iowa Finance Authority (IFA) through the Iowa Economic Development & Finance Authority. It connects first-time homebuyers with affordable mortgages through local participating lenders — giving buyers access to below-market interest rates, low down payment options, and additional financial assistance that isn’t available through a standard mortgage.
Think of it as having the Iowa Finance Authority on your team, working alongside your lender and real estate agent to make buying your first home as affordable and straightforward as possible.
The Big Benefits
1. Below-Market Interest Rates
One of the most powerful features of the FirstHome Program is the interest rate. Rates are typically lower than the current market rate and come with fewer fees. Even better? Your credit score does not affect your interest rate, a major advantage over conventional loans, where a lower score can mean a higher rate and thousands of dollars in extra costs over the life of a loan.
2. Low Down Payment Requirements
Saving for a down payment is one of the biggest hurdles first-time buyers face. With FirstHome, loans may require as little as 3% down. Borrowers whose qualifying income is less than 80% of the Area Median Income may also be eligible for reduced mortgage insurance coverage, lowering your monthly payment even further.
3. Down Payment & Closing Cost Assistance
Can’t cover the upfront costs? The FirstHome Plus program pairs with your FirstHome mortgage to provide a $2,500 grant toward your down payment and closing costs, with no repayment required. There’s also a second loan option of up to 5% of the home’s purchase price with no monthly payments, repaid only when you sell, refinance, or pay off your first mortgage.
For many buyers, this assistance is the difference between buying now and waiting years to save more.
4. Free Iowa Title Guaranty Certificate
Every FirstHome borrower is eligible to receive a free Iowa Title Guaranty Owner’s Certificate at closing. Title issues are rare, but if one ever arises, this certificate means Iowa Title Guaranty steps in to cover attorneys’ fees and defend your ownership. That peace of mind comes at zero cost to you.
Do You Qualify?
The program has clear, accessible eligibility requirements. Here’s a quick overview:
Who qualifies as a first-time homebuyer? You qualify if you have not owned your primary residence in the last three years. You may also qualify as a current or former military member (with a discharge other than dishonorable), or if you’re purchasing a home in a designated Targeted Area, even if you’ve owned before. Use the Eligibility Quick Check tool at WelcomeHomeIA.com to find out in minutes.
Income Limits: Household income limits vary by county and household size, ranging from $102,100 to $171,360. Most Iowa families will find they fall comfortably within these limits.
Home Purchase Price Limits: The maximum purchase price is $566,000, and may be as high as $692,000 in targeted areas, more than enough to cover most homes on the market across Iowa.
Credit Score: A minimum 640 credit score is required. For borrowers with no established credit history, non-traditional credit documentation may be accepted in accordance with loan guidelines.
Debt-to-Income Ratio: The maximum allowable debt-to-income ratio is 50%, which is flexible enough to accommodate many buyers who carry student loans or other debts.
Occupancy: You must move into the home as your primary residence within 60 days of closing.
Loan Terms: FirstHome is for new purchases only (no refinancing), with 25 or 30-year loan terms available.
Homebuyer Education: All borrowers are required to complete a homebuyer education course, a valuable step that sets you up for long-term success as a homeowner.
Real Iowans, Real Results
The FirstHome Program isn’t just a policy, it’s a path that thousands of Iowans have already walked. In fiscal year 2024 alone, 2,665 Iowans became homeowners through IFA’s single-family homeownership programs.
Stories like Christina’s, who turned what felt like insurmountable financial barriers into closing on her home with down payment assistance, and Chelsea’s, who went from “someday” thinking to handing keys to her first home, show that this program works for real people in real circumstances.
How to Get Started
The process is straightforward:
- Check your eligibility at WelcomeHomeIA.com — it only takes a few minutes
- Find a participating lender in your area at WelcomeHomeIA.com/find-lender-realtor
- Apply through your lender — they’ll collect your documents, verify eligibility, and guide you through underwriting
- Close on your home and get those keys
You can also contact the Iowa Finance Authority directly at 515-348-6200 or visit opportunityiowa.gov for more information.
The Bottom Line
The FirstHome Program removes the biggest obstacles standing between Iowans and homeownership, the down payment, the interest rate, and the uncertainty of qualifying. If you haven’t owned a home in the last three years, there’s a real chance this program could make your first purchase more affordable than you think.
The adventure of homeownership is waiting. Why not see if you qualify today?
For more information, visit the Iowa Finance Authority FirstHome Program page or use the Eligibility Quick Check tool.
Source: Iowa Economic Development & Finance Authority | opportunityiowa.gov