Iowa FirstHome Plus Program Guide

Guide to the Iowa FirstHome Plus Program

The Iowa FirstHome Plus Program is designed to assist first-time homebuyers in Iowa by offering financial support to help with down payments and closing costs. This program makes it easier for homebuyers to achieve homeownership by reducing the financial burden of purchasing a home. In 2025, the program continues to provide updated eligibility criteria and benefits to make homeownership more attainable. Below is a comprehensive guide to the program, including the benefits, eligibility requirements, and application process.

1. Program Overview:

• Purpose: The Iowa FirstHome Plus Program helps first-time homebuyers by providing down payment and closing cost assistance. This program is designed to make homeownership more accessible for individuals who may not have sufficient savings to cover the initial costs of buying a home.
• Assistance Amount: Eligible applicants can receive up to $6,500 in down payment and closing cost assistance, helping reduce the upfront costs of purchasing a home.
• Loan Structure: The assistance is offered as a deferred second mortgage, meaning that there are no monthly payments required. The loan is repaid when the home is sold, refinanced, or paid off, making it easier for homebuyers to manage their finances.

2. Eligibility Requirements for 2025:

To qualify for the Iowa FirstHome Plus Program, applicants must meet the following criteria:

• First-Time Homebuyer: The program is primarily intended for first-time homebuyers, defined as individuals who have not owned a home in the past three years. There may be exceptions for certain individuals, such as veterans or those purchasing in designated target areas.
• Income Limits: Applicants must meet income limits that vary depending on the county and household size. These limits are based on the area median income (AMI) and are adjusted annually to reflect current housing market conditions.
• Credit Score: A minimum credit score of 640 is required to qualify for the program. Lenders may consider other factors, such as debt-to-income ratio, in determining eligibility.
• Property Requirements: The property must be located in Iowa and must serve as the applicant's primary residence. The home must also meet certain price limits to ensure it remains affordable for the applicant.
• Homebuyer Education: Applicants must complete an approved homebuyer education course. This course helps homebuyers understand the responsibilities of homeownership and prepare them for managing their mortgage and finances.

3. How to Apply:

To apply for the Iowa FirstHome Plus Program, follow these steps:

• Assigned Loan Officer: After expressing interest in the program, a dedicated loan officer will be assigned to assist you. The loan officer will guide you through the application process, verify your eligibility, and help you gather the necessary documents.
• Required Documentation: Be prepared to provide documentation such as proof of income, tax returns, credit history, and a certificate of completion for the homebuyer education course.
• Submit Your Application: Once all the necessary documents are gathered, submit your application to your loan officer. The loan officer will review your materials, confirm eligibility, and assist with the next steps of the process.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. The course provides important information about managing mortgage payments, budgeting, and the long-term responsibilities of owning a home.
• Course Options: The course is available both online and in-person, allowing flexibility for applicants. Upon completion, you will receive a certificate, which is required for your application to be processed.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The Iowa FirstHome Plus Program offers up to $6,500 in down payment and closing cost assistance, helping to reduce the initial financial burden of buying a home.
• Deferred Loan Terms: The assistance is provided as a deferred loan. This means there are no monthly payments required, and the loan is due when the home is sold, refinanced, or paid off. This feature makes the program more manageable for homebuyers.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will help you review and sign the necessary documents. They will guide you through the final steps of the process, preparing you for the closing.
• Closing Costs: While the Iowa FirstHome Plus Program helps cover down payment and closing costs, you may still be responsible for other costs associated with the home purchase. Your loan officer will clarify which costs are covered by the program and which you will need to cover on your own.

Our dedicated loan officers are here to help you every step of the way. From the application process to closing, they will provide guidance, answer your questions, and ensure you make the most of the Iowa FirstHome Plus Program. With their support, you can confidently take the next step toward homeownership and achieve your dream of owning a home in Iowa.