Iowa Finance Authority Mortgage Programs
IFA loans can help eligible Iowa homebuyers access affordable mortgage options, down payment assistance, and closing cost support through participating lenders. FSB can help you compare FirstHome, Homes for Iowans, and other mortgage programs based on your homebuying plans.1
Lower Rate Options
IFA program rates may be below market, and credit score does not affect the program interest rate.1
Assistance Available
Eligible buyers may qualify for down payment or closing cost assistance through IFA.2
Iowa Homebuyers
Programs are available for qualifying Iowa buyers purchasing a primary residence.1
Local Help
Work with FSB mortgage lenders who can help explain the program and next steps.
What Are IFA Loans?
IFA loans are mortgage grant programs offered through the Iowa Finance Authority and participating lenders. They are designed to help qualified homebuyers purchase a primary residence in Iowa with affordable mortgage terms and possible help for upfront costs.1
First-Time Buyers
FirstHome Program
FirstHome is designed for first-time homebuyers, qualifying military buyers, and buyers purchasing in eligible targeted areas.1
First-Time or Repeat Buyers
Homes for Iowans
Homes for Iowans may be available to first-time and repeat homebuyers purchasing a primary residence in Iowa.1
Upfront Cost Help
Down Payment Assistance
IFA offers assistance options that may help with down payment and closing costs when used with an IFA mortgage program.2
Compare FirstHome and Homes for Iowans
The right IFA program depends on your homebuying history, income, purchase price, and whether the property will be your primary residence.1
| Program Detail | FirstHome | Homes for Iowans |
|---|---|---|
| Buyer type | First-time buyers, eligible military buyers, or targeted-area buyers | First-time and repeat buyers |
| Property use | Primary residence | Primary residence |
| Occupancy timeline | Within 60 days of closing | Within 60 days of closing |
| Minimum credit score | 640 | 640 |
| Debt-to-income ratio | Maximum 50% with approve/eligible, while manual underwriting remains at 45%1 | Maximum 50% with approve/eligible, while manual underwriting remains at 45%1 |
| 2026 purchase price limit | $566,000, or up to $692,000 in targeted areas1 | $692,0001 |
| 2026 income limit | Varies by county and household size and ranges from $102,100 to $171,3601 | $171,360 statewide1 |
| Homebuyer education | Required for all borrowers | Required for all borrowers |
| Refinance eligible | No | No |
2026 IFA Income and Purchase Price Limits
IFA updates program limits, so the numbers below should be confirmed before you apply. These figures reflect IFA-published 2026 program limits reviewed July 3, 2026.1
FirstHome Income Limits
For 2026, FirstHome household income limits vary by county and household size and range from $102,100 to $171,360.1
- Limits vary by county
- Household size may affect eligibility
- Targeted area rules may affect purchase limits
FirstHome Purchase Limits
For 2026, the FirstHome purchase price limit is $566,000 and may be up to $692,000 in targeted areas.1
- Targeted area status should be confirmed before applying
- Eligible targeted areas are determined by IFA tools
- Program rules may change
Homes for Iowans Limits
For 2026, Homes for Iowans lists a household income limit of $171,360 and a home purchase limit of $692,000.1
- Available to first-time and repeat buyers
- Primary residence required
- New purchase only
How to Get Started With an IFA Loan
You do not apply directly through IFA. You work with a participating lender who can help review your eligibility, loan options, and next steps.1
1
Talk with an FSB mortgage lender about your homebuying goals, income, credit, and purchase timeline.
2
Review whether FirstHome, Homes for Iowans, down payment assistance, or another mortgage option is the better fit.
3
Complete your application, provide documentation, and work with your lender through eligibility review, underwriting, and closing.
Mortgage Calculators for Iowa Homebuyers
Estimate payments, compare options, and plan your next step before you apply.
Frequently Asked Questions About IFA Loans in Iowa
Find answers to common questions about Iowa Finance Authority mortgage programs, down payment assistance, and eligibility.
What is an IFA loan?
+An IFA loan is a mortgage program offered through the Iowa Finance Authority and participating lenders. These programs can help eligible Iowa buyers access affordable mortgage options and may include down payment or closing cost assistance.1
Who qualifies for the IFA FirstHome Program?
+The FirstHome Program is generally for first-time homebuyers, which means you have not owned your primary residence in the last three years. You may also qualify if you are an eligible military buyer or if you are purchasing a home in a targeted area.1
Who qualifies for Homes for Iowans?
+Homes for Iowans is available to first-time and repeat homebuyers who are purchasing a primary residence in Iowa. The 2026 program limits list a household income limit of $171,360 and a home purchase limit of $692,000.1
Can I use IFA for down payment assistance?
+Yes. The FirstHome Program may offer either a $2,500 grant or a second loan option, but not both. The Homes for Iowans Program offers the second loan down payment and closing cost assistance option. The second loan may provide up to 5% of the home’s sale price or appraised value, whichever is lower.2
Does the IFA second loan have monthly payments?
+No monthly payments are required on the IFA second loan. Repayment is due at the time of sale, refinance, or when the first mortgage is paid in full. Subordination is not permitted.2
Do I have to be a first-time homebuyer to use an IFA loan?
+Not always. FirstHome is mainly for first-time buyers, eligible military buyers, or buyers purchasing in targeted areas. Homes for Iowans is available to first-time and repeat buyers who meet program requirements.1
What credit score do I need for an IFA loan?
+IFA lists a minimum credit score of 640 for FirstHome and Homes for Iowans. Borrowers with no credit score may be able to use non-traditional credit documentation if allowed under the agency guidelines for the loan type.1
Can I use an IFA loan to refinance?
+No. IFA’s FirstHome and Homes for Iowans programs are for new home purchases only and are not for refinances. IFA lists 25- or 30-year term options for these programs.1
Do I have to live in the home?
+Yes. The home must be your primary residence, and IFA states that the buyer must occupy the home within 60 days of closing.1
Is homebuyer education required?
+Yes. IFA states that homebuyer education is required for all borrowers using FirstHome or Homes for Iowans.1
Is there help for eligible military buyers?
+Yes. The Military Homeownership Assistance Program provides a $5,000 grant to eligible service members and veterans for down payment and closing costs on qualifying homes. Funds may be used with FirstHome and Homes for Iowans, and the program is limited to funding availability.3
How do I apply for an IFA loan with FSB?
+Start by contacting an FSB mortgage lender. Your lender can help review your eligibility, compare IFA options with other mortgage programs, collect documentation, and guide you through application, underwriting, and closing.1
See If an IFA Loan Could Fit Your Plans
Contact FSB's Mortgage department at 319-730-6990 or fill out the form below to talk with a local lender about IFA loan options in Iowa.
Disclosures
1 Iowa Finance Authority program information is based on current IFA-published FirstHome and Homes for Iowans program details reviewed July 3, 2026. FirstHome 2026 household income limits vary by county and household size and range from $102,100 to $171,360. FirstHome 2026 home purchase limit is $566,000 and may be up to $692,000 in targeted areas. Homes for Iowans 2026 household income limit is $171,360, and the 2026 home purchase limit is $692,000. FirstHome and Homes for Iowans are for new purchases only, not refinances, and list 25- or 30-year term options. The home must be occupied by the buyer as a primary residence within 60 days of closing. IFA lists a minimum 640 credit score. IFA lists a minimum 640 credit score. IFA lists the maximum debt-to-income(DTI) ratio as 50% with approve/eligible (manual underwriting required at over 45% DTI). Homebuyer education is required for all borrowers. Loans may require only 3% down payment depending on loan type. Program availability, rates, limits, terms, and eligibility guidelines are subject to change.
2 FirstHome down payment and closing cost assistance may be available as either a $2,500 grant or a second loan program loan, not both. The second loan program may provide up to 5% of the home’s sale price or appraised value, whichever is lower, with no maximum. Repayment is due at the time of sale, refinance, or when the first mortgage is paid in full. No monthly payments are required. Subordination is not permitted. Homes for Iowans offers the second loan down payment and closing cost assistance option. FirstHome and Homes for Iowans down payment and closing cost options cannot be combined with each other.
3 The Military Homeownership Assistance Program provides a $5,000 grant to eligible service members and veterans for down payment and closing costs on qualifying homes. Funds may be used with FirstHome and Homes for Iowans. Program is limited to funding availability and requires prior approval before closing on a qualified home.
All loans are subject to credit approval, program eligibility, property eligibility, and underwriting requirements. Other restrictions may apply. Contact Farmers State Bank for current program details. Farmers State Bank NMLS ID: 408469. Member FDIC. Equal Housing Lender.
