First-Time Home Buyer Iowa 2026
Your complete guide to buying your first home in Iowa. 2+ down payment assistance programs, FHA loans from 5.88%, and step-by-step guidance.
What First-Time Buyer Programs Are Available in Iowa?
Iowa offers 2 major first-time home buyer assistance programs. These include IFA FirstHome Plus, Iowa Military Homeownership. Programs provide up to $2,500 in down payment assistance through grants, forgivable loans, and below-market interest rates.
How Much Do I Need to Buy in Iowa?
You can buy a home in Iowa with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$6,825), and conventional loans start at 3% ($$5,850) on the median price of $195,000.
| Loan Type | Down Payment | $ Amount | Monthly P&I | Min Credit |
|---|---|---|---|---|
| VA Loan | 0% | $0 | $1,148 | 620 |
| USDA Loan | 0% | $0 | $1,179 | 640 |
| Conventional 3% | 3% | $5,850 | $1,144 | 620 |
| FHA Loan | 3.5% | $6,825 | $1,114 | 580 |
| Conventional 20% | 20% | $39,000 | $943 | 620 |
Iowa Down Payment Assistance Programs
IFA FirstHome Plus
DPA grant for first-time buyers
Iowa Military Homeownership
Special program for military members
5 Steps to Buy Your First Home in Iowa
To buy your first home in Iowa, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.
Check Your Credit & Finances
Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Iowa, you may need as little as $6,825 for an FHA down payment.
Get Pre-Approved
Compare rates from at least 3 lenders. Current Iowa rates: 6.08% (30-year), 5.88% (FHA). Pre-approval shows sellers you're serious and locks your rate.
Apply for Iowa DPA Programs
Iowa has 2+ DPA programs. The IFA FirstHome Plus offers up to $2,500. Apply early—funding can be limited.
House Hunt & Make an Offer
Popular cities in Iowa: Des Moines, Cedar Rapids, Davenport, Sioux City, Iowa City. Median price is $195,000 (+5.8% YoY). Work with a local real estate agent who knows the market.
Close on Your New Home
Closing costs in Iowa typically run 2-5% of the purchase price ($5,850-$9,750). Some DPA programs also cover closing costs.
Start Your Iowa Home Buying Journey
Get pre-approved in minutes and see what you qualify for.
Get Pre-Approved NowIowa First-Time Buyer FAQ
What first-time home buyer programs are available in Iowa?
Iowa offers 2 major programs: IFA FirstHome Plus, Iowa Military Homeownership. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.
How much down payment do I need in Iowa?
As little as $0 (VA/USDA), $$5,850 (3% conventional), or $$6,825 (3.5% FHA) on the median price of $195,000.
What income do I need to buy in Iowa?
Using the 28% rule, you'd need approximately $$47,731/year. The median household income in Iowa is $63,481.
What is the FHA loan limit in Iowa?
The 2026 FHA loan limit in Iowa is $472,030. The conforming loan limit is $766,550.