Iowa offers plenty of appealing places to call home, from the energy of Des Moines and the college-town atmosphere of Iowa City to the state’s many small, welcoming communities. But for countless buyers, the biggest obstacle isn’t managing a monthly mortgage payment once they move in, it’s coming up with the down payment to get started.
That’s where Iowa’s down payment assistance (DPA) programs make a difference. Built to support both first-time and repeat buyers, these resources help reduce upfront costs and make homeownership more achievable across the state.
This guide highlights some of the most useful statewide, county, and city-based programs available today. While it won’t list every option, the focus is on programs that are well-funded, broadly accessible, and consistently beneficial for buyers. We’ll also keep this page updated as programs change over time.
What is AMI?
Area Median Income (AMI) is an important factor in determining eligibility for many down payment assistance programs. It refers to the median income in a particular geographic area, and the figure used to evaluate your eligibility is generally based on where you're purchasing a home rather than where you currently live.
Household size can also influence income limits, with larger households often qualifying at higher income levels.
For example, imagine a DPA program is available to buyers earning up to 80% of AMI. If the applicable AMI is $100,000, the program's income limit would be $80,000. A buyer earning $72,000 annually could potentially qualify for assistance.
You can search for the AMI of a particular location using Fannie Mae's AMI lookup tool.
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Statewide Down Payment Assistance Programs
Iowa’s statewide options include programs administered through the Iowa Finance Authority (IFA) and grants available through participating Federal Home Loan Bank of Des Moines member lenders.
FirstHome Program (IFA)
The FirstHome Program offers two second-mortgage options: 3% assistance up to $10,000 or 5% up to $15,000, based on the lower of the purchase price or appraised value. There are no monthly payments, but you’ll repay the assistance when you sell, refinance, or pay off your first mortgage.
Eligibility: The program primarily serves first-time buyers, with exceptions for eligible veterans and homes in targeted areas. Buyers generally need a 640 credit score, homebuyer education, and an IFA mortgage, and must meet income and purchase price limits.
Homes for Iowans (IFA)
The Homes for Iowans Program extends the same assistance choices to both first-time and repeat buyers: 3% up to $10,000 or 5% up to $15,000, using the lower of the purchase price or appraised value. The second mortgage has no monthly payments and is repaid when you sell, refinance, or pay off your first mortgage.
Eligibility: Buyers generally need a credit score of at least 640, must complete homebuyer education, and must meet IFA’s income, purchase price, and mortgage requirements. The home must be their primary residence.
Military Homeownership Assistance (IFA)
The Military Homeownership Assistance Program offers a $5,000 grant for eligible veterans and service members to use toward down payment or closing costs. It can also be combined with FirstHome or Homes for Iowans assistance.
Eligibility: Eligible service members, veterans, and surviving spouses must meet IFA’s qualifying military service requirements and purchase a primary residence. The benefit is generally available once per eligible service member.
Home$tart
Home$tart provides a $15,000 grant toward down payment and closing costs through participating lenders. The grant comes with five-year ownership requirements. Selling the home or refinancing in certain circumstances during that time may require you to repay part of the assistance.
Eligibility: Household income must be within 80% of the applicable median income limit. At least one buyer on the mortgage must qualify as a first-time buyer and complete homebuyer education. The home must be a primary residence.
Down Payment Assistance Programs by County and Region
Some counties and regional housing organizations in Iowa run localized DPA programs with limited funding availability.
Northeast Iowa Regional Housing Trust Fund (NEIRHTF)
The Northeast Iowa Regional Housing Trust Fund offers purchase assistance of up to 10% of the home’s price, capped at $15,000, including eligible closing costs. Depending on your finances, the assistance may be a forgivable or repayable loan. Moving out or transferring ownership during the loan term can require repayment.
Eligibility: First-time buyers must meet the program’s household-income limits and purchase a primary residence in Allamakee, Clayton, Fayette, Howard, or Winneshiek County.
EIRHC Housing Trust Fund Down Payment Assistance
The Eastern Iowa Regional Housing Corporation Housing Trust Fund offers up to $10,000 in down payment assistance through a forgivable loan. Buyers must continue owning and living in the home during the five-year forgiveness period.
Eligibility: Buyers must meet the trust fund’s household-income limits, complete housing counseling, and obtain qualifying mortgage financing. Homes must be in Cedar, Clinton, Delaware, Jackson, or Dubuque County, outside the city of Dubuque.
Down Payment Assistance Programs by City
Cities across Iowa also run strong DPA programs, typically targeted at low- to moderate-income residents within city limits.
Cedar Rapids First Time Home Buyer Program
The Cedar Rapids Program offers up to $14,999 in down payment and closing cost assistance as a forgivable loan. The loan is forgiven over five years while you own and live in the home; moving out early means repaying the remaining balance.
Eligibility: Buyers must qualify as first-time buyers, earn no more than 80% AMI, complete homebuyer education, and purchase an eligible home within Cedar Rapids. A contribution from the buyer’s own funds is also required.
Davenport Home Buyer Grant
The Davenport Home Buyer Grant Program provides up to 50% of the lender-required down payment plus eligible closing costs, capped at $10,000.
Eligibility: Buyers must be first-time homebuyers, meet 80%-of-AMI household income limits, complete homebuyer counseling, and purchase an eligible primary residence within Davenport using qualifying fixed-rate financing.
Waterloo Community Development Homebuyer Assistance
The Waterloo Community Development Homebuyer Assistance Program offers up to $25,000 toward down payment and closing costs through a 0% deferred forgivable loan. There are no monthly payments, and forgiveness depends on continued ownership and living in the home. Selling, refinancing, or moving out early can require repayment.
Eligibility: First-time buyers must earn no more than 80% AMI, complete homebuyer education, contribute at least $1,000 of their own funds, and purchase an eligible primary residence within Waterloo.
Other Iowa Down Payment Assistance Programs
On top of the DPA options mentioned above, these programs can also make Iowa homeownership more affordable.
State Programs
County Programs
City Programs
Be Sure to Consider Property Taxes and Homeowners Insurance
Down payment assistance can help reduce the upfront cost of buying a home, but it's equally important to consider the ongoing expenses of homeownership.
In Iowa, property taxes can vary considerably depending on the county, city, and school district where you buy. Homeowners insurance premiums can also differ based on the property's location, age, condition, and exposure to severe weather, including hail and windstorms.
These expenses are often included in your monthly mortgage payment, so they can have a significant impact on how much home you can comfortably afford.
Before making an offer, research the property's tax bill and request homeowners insurance quotes to get a more accurate picture of your potential monthly housing costs.
Final Thoughts
Owning a home in Iowa is a dream for many, whether that means a starter house in Des Moines, a family place near Iowa City, or a quiet spot in one of the state’s rural communities. Fortunately, Iowa offers a variety of down payment assistance programs that can help turn that dream into reality. Use this guide as a starting point, experiment with our loan calculators, and stay up to date with current mortgage rates to better understand your position. With the right resources in place, your path to Iowa homeownership could be just around the corner.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
