FirstHome & FirstHome Plus

Information for Lenders & Real Estate Agents

FirstHome Program
Home buyers may now take advantage of IFA’s FirstHome program even if they'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.

Benefits

• The interest rate for FirstHome and FirstHome Plus loans usually cost less than the market rate mortgage and have a  fixed interest rate 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’ 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.

Qualification
Each year thousands of Iowans use the Iowa Finance Authority’s homeownership programs to purchase the home of their dreams. Your borrowers can take advantage of the FirstHome or FirstHome Plus program too, if they meet these requirements:  

• The household income is within these income limits for their area. 
• The home costs no more than $289,000 and be located in Iowa.
• The buyer must occupy the home as their primary residence within sixty days of closing.
• Must demonstrate an ability to repay the loan.
• Must have an acceptable credit history.

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. A borrower's annual household income must not exceed $49,600.

Application Process
Home buyers should follow these easy steps when working with participating lenders:

• Contact an IFA Participating Lender for loan pre-approval
• Determine whether household income meets the income requirements
• Find a home that meets your needs. To qualify, the purchase price must be no more than $289,000 and be located in Iowa 
• Get a signed purchase agreement for the home
• Apply for a mortgage with an IFA Participating Lender

More Information
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. 

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800.432.7230