What income limits apply for Iowa first-time homebuyer assistance?

Income caps vary by program, county, and household size. The Iowa Finance Authority publishes current limits annually, and eligibility is checked up front with your application.

Does my credit score affect qualification?

Yes. Most programs require a minimum score, typically 640 or higher. Higher scores can also help with better loan pricing alongside assistance.

Do I have to be a first-time buyer, or can repeat buyers qualify?

“First-time buyer” usually means you haven’t owned a home in the past three years. But certain programs allow repeat buyers if they meet income, purchase price, and property requirements.

Are there purchase price limits on homes in Iowa?

Yes. Assistance programs set maximum purchase price limits that vary by county. Your lender confirms whether the home qualifies.

Do I need to live in the home as my primary residence?

Yes. These programs are designed for owner-occupied homes. Second homes and investment properties aren’t eligible.

Are there special exceptions for veterans or targeted areas?

Yes. Qualified veterans and buyers purchasing in federally designated targeted areas may qualify without meeting the standard 3-year first-time buyer rule.

Iowa first-time homebuyer assistance (IFA): Do you qualify?

Blake Overton Mortgage Team
Aug 11
2 min read

Updated: Sep 10

If you’ve been looking at homes in Iowa, you’ve probably heard about the Iowa Finance Authority (IFA) and their down payment assistance programs. They’re one of the most popular and well-recognized options in the state — and for good reason. But before you start counting on that extra boost, the real question is: Can you actually qualify?

See If You Qualify

First, What the Iowa Finance Authority Actually Does

IFA isn’t a lender. They don’t process your mortgage or collect your payment each month. Instead, they act as the access point for the assistance funds.

Here’s how it works:

IFA sets the program rules and provides the assistance funds.
You still work with a lender who is IFA-approved (like us) to process your mortgage and access those funds on your behalf.
Not all lenders are approved to offer IFA programs — so if you’ve been told “we don’t do that here,” that’s why.

Why So Many Buyers Use IFA

In Iowa, IFA programs are often the go-to for down payment assistance because:

Title graphic: Do you qualify for Iowa Finance Authority down payment assistance?

They’re usually more flexible than other programs.
Rates are competitive (sometimes better than market).
Options include both a grant and a low-interest repayable loan for down payment and closing costs.
They work with a wide range of buyers — not just first-time homebuyers.

Iowa first-time homebuyer assistance: eligibility checklist

While the specific details can vary by program and county, here are the core requirements you’ll need to meet:

Credit Score: At least 640.
Income Limits: Based on household size and the county where you’re buying.
Purchase Price Limits: The home must fall within IFA’s set limits.
Occupancy: You must live in the home as your primary residence.
Homebuyer Education: In some cases, you’ll need to complete an approved course.

Where to Check the Current Numbers

One of the nice things about IFA is that their interest rates are publicly posted and updated daily.

See the current rates here: IFA Interest Rates
Learn more about IFA programs here: About the Iowa Finance Authority

Remember: IFA Is Just One Option

IFA is a great choice for many buyers — but it’s not the only assistance program out there. Depending on your situation, there may be local grants, national programs, or other financing options that work better for your goals. Our job is to help you compare them side-by-side.

If you’re still deciding whether you should use assistance in the first place, check out this related post:Down Payment Assistance in Iowa: What First-Time Buyers Need to Know

Ready to see if you qualify?

Not sure if Iowa first-time homebuyer assistance fits your situation? Do a 60-second pre-check. We are an IFA-approved lender and can walk you through the application process, confirm your eligibility, and help you decide whether IFA is the right fit, or if another program will get you into your home faster and with more flexibility.

See If You Qualify

Schedule A Call - Talk to An IFA-Approved Lender

Thanks for stopping by,

Blake Overton

Mortgage Lender

NMLS#1651000