FirstHome & FirstHome Plus

 FirstHome Program
You may now take advantage of IFA’s FirstHome program even if you've owned a home previously! This change paired with IFA’s affordable, fixed interest rate makes FirstHome the choice for more Iowa home buyers than ever before. IFA works with a network of hundreds of Participating Lenders around the state to make the home purchase process convenient for you. Contact a participating lender near you today!

Benefits

• Affordable, fixed interest rate
• FirstHome Plus grant of up to $2,500
• A participating lender near you

Qualification

• Household income must meet these eligibility limits
• The home you’re purchasing must cost no more than $289,000 and must be located in Iowa
• Occupy the home as your primary residence within sixty days of closing
• Must demonstrate an ability to repay the loan
• Must have an acceptable credit history
• If you are a veteran, even if you have owned a home previously, you may take advantage of FirstHome and FirstHome Plus if you apply for financing within 25 years of your final date of active duty. In order to qualify, you may NOT have  used a mortgage revenue bond program such as FirstHome or FirstHome Plus to finance a previous home purchase.

FirstHome Plus Grant
IFA’s FirstHome Plus grant may provide cash assistance of up to $2,500 to help eligible borrowers with closing costs, down payment or minor repairs. The grant must be used in conjunction with the FirstHome program. Qualified borrowers may have an annual household income of up to $49,600.

Application Process
If you’re ready to become a homeowner, follow these easy steps to making your dream a reality with IFA’s homeownership programs.

• Contact an IFA Participating Lender in your area 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. To qualify, the purchase price must be no more than $289,000.
• Get a signed purchase agreement for the home
• Apply for a mortgage with an IFA Participating Lender

More Information
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.
IFA recommends that a homeowner consult his/her tax preparer for guidance on Recapture Tax. However, a Recapture Tax summary information sheet is provided for more information. 

Contact Us
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 (Guidance on home purchase options)