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FirstHome & FirstHome Plus

Information for Lenders & Real Estate Agents

SPECIAL UPDATES: Recent changes to the FirstHome and FirstHome Plus programs mean even more Iowans can take advantage of them. The programs’ Targeted Areas now include the 86 counties that have been declared federal disaster areas after this summer’s storms and floods. Learn more here. If you are a veteran who has owned a home previously you may also take advantage of FirstHome or FirstHome Plus if you apply for financing before 25 years has passed since the last date of  active duty. Also, you may not have used a mortgage revenue bond program such as FirstHome or FirstHome Plus to finance a previous home purchase. The Housing and Economic Recovery Act of 2008 (H.R. 3221) prohibits the use of the new, $7,500 First-Time Homebuyer Credit in conjuntion with tax-exempt Mortgage Revenue Bonds. Because IFA's FirstHome and FirstHome Plus programs are financed with tax-exempt Mortgage Revenue Bonds, homeowners who use these programs are not eligible for the credit. Please talk with your tax preparer. You can also learn more here.

FirstHome & FirstHome Plus Program Brochure

FirstHome Program
The FirstHome program offers qualified first-time home buyers affordable mortgage financing with a low, fixed interest rate. See the special update above to learn how your borrowers can take advantage of the program even if they've owned a home previously.

FirstHome Application Process

FirstHome Plus Program
Many first-time home buyers have a hard time coming up with cash to buy their first home. IFA’s FirstHome Plus program provides cash assistance of up to $2,500 to help with closing costs, down payment or minor repairs. Qualified home buyers may have an annual household income of up to $46,800.

FirstHome Plus Application Process and Settlement Statement Information

Who qualifies for FirstHome and FirstHome Plus?
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 certain limits.
• The home costs no more than the eligible purchase price.

Benefits of choosing FirstHome or FirstHome Plus

• The interest rate for FirstHome and FirstHome Plus loans is usually lower than the market rate and is fixed 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’ low 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.

Targeted Areas
Borrowers who purchase a home in a Targeted Area do not need to be first-time homebuyers to take advantage of FirstHome or FirstHome Plus. Additionally, annual household income limits and home purchase prices are higher in Targeted Areas.

In response to storms and floods in 2008, the FirstHome and FirstHome Plus programs’ Targeted Areas now include the 86 counties that have been declared federal disaster areas. (Selected parts of the city of Sioux City are also Targeted Areas.)

The following borrower eligibility requirements apply in Targeted Areas:

• If you are using the FirstHome Program, your annual household income must fall within IFA's Maximum Household Income Limits. If you are using FirstHome Plus, your annual household income may not exceed $46,800.
• The home you want to purchase may cost no more than $289,000.
• As the homeowner, you must occupy the home.
• You must demonstrate an ability to repay the loan.
• You must have an acceptable credit history.

See a list of the counties that make up Targeted Areas and income limits that apply in each.

Non-targeted Areas
Borrowers who purchase a home in a Non-targeted Area must be first-time home buyers to take advantage of FirstHome or FirstHome Plus. However, qualified veterans who have owned a home previously may use the program.

The following borrower eligibility requirements apply for home buyers who are purchasing a home in a Non-targeted Area:

• You must be a first-time home buyer, meaning you have not owned a home in the last three years, unless you are a qualified veteran.
• If you are using the FirstHome Program, your annual household income must fall within IFA's Maximum Household Income Limits. If you are using FirstHome Plus, your annual household income may not exceed $46,800.
• The home you want to purchase may cost no more than $237,000.
• As the homeowner, you must occupy the home.
• You must demonstrate an ability to repay the loan.
• You must have an acceptable credit history.

See a list of the counties that make up Non-targeted Areas and income limits that apply in each.

In some specific and rare instances, home buyers who use FirstHome or FirstHome Plus are subject to recapture tax. Contact the Iowa Finance Authority to learn more.