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The Iowa Finance Authority (IFA) offers first-time home buyers great home financing opportunities through our network of hundreds of Participating Lenders located around the state. Our FirstHome and FirstHome Plus programs can make your dream of homeownership a reality.

FirstHome Program Brochure

FirstHome program
The FirstHome program offers qualified first-time home buyers affordable mortgage financing with a low, fixed interest rate. See the special update below to learn how you can take advantage of the program even if you've owned a home previously.

FirstHome Plus program
Many first-time home buyers have a hard time coming up with cash to buy their first home. IFA’s FirstHome Plus program provides cash assistance of up to $2,500 to help with closing costs, down payment or minor repairs. Qualified home buyers may have an annual household income of up to $49,600.

Who qualifies for FirstHome and FirstHome Plus?
Each year thousands of Iowans use the Iowa Finance Authority’s homeownership programs to purchase the home of their dreams. You can take advantage of the FirstHome or FirstHome Plus program too, if you meet these requirements:

• Your household income is within certain limits.
• Your home costs no more than the eligible purchase price.

Benefits of choosing FirstHome or FirstHome Plus

• The interest rate for FirstHome and FirstHome Plus loans is usually lower than the market rate and is fixed for 30 years.
• Home mortgages financed with FirstHome or FirstHome Plus may require a very low down payment or no down payment at all, and may they be conventional loans or loans backed by the federal government.
• The FirstHome and FirstHome Plus programs’ low interest rates do not change based on the qualified borrower’s credit rating.
• Borrowers who use FirstHome or FirstHome Plus may request a free Title Guaranty Owner’s Certificate. This Certificate protects the borrower’s interest in the property’s title, even after the home is sold. What’s more, if a title defect is identified, Title Guaranty becomes the borrower’s free legal defense.

Targeted Areas
Borrowers who purchase a home in a Targeted Area do not need to be first-time homebuyers to take advantage of FirstHome or FirstHome Plus. Additionally, annual household income limits and home purchase prices are higher in Targeted Areas.

In response to storms and floods in 2008, the FirstHome and FirstHome Plus programs’ Targeted Areas now include the 86 counties that have been declared federal disaster areas. (Selected parts of the city of Sioux City are also Targeted Areas.)

The following borrower eligibility requirements apply in Targeted Areas:

• If you are using the FirstHome Program, your annual household income must fall within IFA's Maximum Household Income Limits. If you are using FirstHome Plus, your annual household income may not exceed $49,600.
• The home you want to purchase may cost no more than $289,000.
• As the homeowner, you must occupy the home.
• You must demonstrate an ability to repay the loan.
• You must have an acceptable credit history.

See a list of the counties that make up Targeted Areas and income limits that apply in each.

Non-targeted Areas
Borrowers who purchase a home in a Non-targeted Area must be first-time homebuyers to take advantage of FirstHome or FirstHome Plus. However, qualified veterans who have owned a home previously may use the program.

The following borrower eligibility requirements apply for home buyers who are purchasing a home in a Non-targeted Area:

• You must be a first-time home buyer, meaning you have not owned a home in the last three years, unless you are a qualified veteran.
• If you are using the FirstHome Program, your annual household income must fall within IFA's Maximum Household Income Limits. If you are using FirstHome Plus, your annual household income may not exceed $49,600.
• The home you want to purchase may cost no more than $237,000.
• As the homeowner, you must occupy the home.
• You must demonstrate an ability to repay the loan.
• You must have an acceptable credit history.

See a list of the counties that make up Non-targeted Areas and income limits that apply in each.

How to apply
If you’re ready to become a homeowner, follow these easy steps to making your dream a reality with FirstHome or FirstHome Plus.

• Contact an IFA Participating Lender for loan pre-approval. The amount for which you’re pre-approved will help you know how much money you can borrow and the price of home you can afford.
• Determine whether your household income meets the programs’ income requirements.
• Find a home that meets your needs.
• Determine if the price of the home meets the FirstHome and FirstHome Plus programs’ purchase price requirements.
• Get a signed purchase agreement for the home.
• Apply for a mortgage with an IFA Participating Lender.

Have questions?
If you have questions about credit, budgeting or other topics related to buying your first home, contact:

• The Iowa Finance Authority
• An IFA Participating Lender
• Your real estate agent
• The Iowa Home Ownership Education Project (Help with pre-purchase home buyer education)

Recapture Tax
In some specific and rare instances, home buyers who use FirstHome or FirstHome Plus are subject to recapture tax.

Recapture is applicable only if all three of the following applies:

1. The homeowner sells his/her home within nine years of the FirstHome mortgage closing date,
2. The homeowner’s household income exceeds these limits per year of move,  and
3. The homeowner receives a capital gain on the sale of the home.