Iowa FirstHome Program Guide

Guide to the Iowa FirstHome Program

The Iowa FirstHome Program is designed to help first-time homebuyers in Iowa purchase a home by providing financial assistance for down payments and closing costs. This program makes homeownership more accessible by offering affordable mortgage options and financial support for qualifying buyers. For 2025, the program continues to provide significant benefits to first-time homebuyers in Iowa. Below is an updated guide to the program, outlining eligibility, benefits, and how to apply.

1. Program Overview:

• Purpose: The Iowa FirstHome Program aims to assist first-time homebuyers by offering down payment and closing cost assistance, making homeownership more affordable.
• Assistance Amount: Eligible buyers can receive up to $5,000 in down payment and closing cost assistance, which can significantly reduce the upfront costs of purchasing a home.
• Loan Terms: The assistance is provided in the form of a deferred loan, meaning there are no monthly payments required. The loan is due when the home is sold, refinanced, or paid off.

2. Eligibility Requirements for 2025:

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

• First-Time Homebuyer: The program is intended for first-time homebuyers, generally defined as individuals who have not owned a home in the past three years. Exceptions may apply for veterans and those purchasing in designated target areas.
• Income Limits: Applicants must meet the income limits established by the program. These limits vary by county and household size, ensuring that the program benefits low to moderate-income buyers.
• Credit Score: A minimum credit score of 640 is required to qualify for the program. Some flexibility may be available depending on other factors such as debt-to-income ratio.
• Property Requirements: The home must be located in Iowa and be used as the applicant’s primary residence. The home must also meet certain price limits to ensure it remains affordable for eligible buyers.
• Homebuyer Education: Applicants are required to complete an approved homebuyer education course. This ensures that homebuyers are informed about the responsibilities of owning a home and the financial aspects of mortgage management.

3. How to Apply:

Applying for the Iowa FirstHome Program involves several simple steps:

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

4. Homebuyer Education Course:

• Mandatory Requirement: A homebuyer education course is required for all applicants. The course will provide you with valuable information about budgeting, managing mortgage payments, and maintaining your home.
• Course Availability: The course is available both online and in-person, offering flexibility to suit your schedule. Upon completion, you will receive a certificate, which is required for your loan application.

5. Down Payment and Closing Cost Assistance:

• Assistance Amount: The program provides up to $5,000 in assistance, which can help cover the down payment and closing costs associated with purchasing a home.
• Deferred Loan Terms: The assistance is provided as a deferred loan, meaning there are no monthly payments required. The loan is due when the home is sold, refinanced, or paid off, allowing you to manage your finances without added pressure.

6. Finalizing the Loan:

• Approval Process: Once your application is approved, your loan officer will help you review and sign the necessary loan documents. You will then proceed with the home purchase process and prepare for closing.
• Closing Costs: While the program helps with down payment and closing cost assistance, you may still be responsible for some costs associated with closing. Your loan officer will explain all the costs involved and clarify which are covered by the program.

Our dedicated loan officers are here to help you throughout the entire process. From initial application to closing, they will guide you every step of the way, ensuring you understand all the benefits and requirements of the Iowa FirstHome Program. With their support, you can make homeownership a reality and take advantage of this valuable program to start your homeownership journey.