FirstHome & FirstHome Plus

Information for Lenders & Real Estate Agents

FirstHome Program
The Iowa Finance Authority's FirstHome program offers first-time home buyers state-sponsored, affordable, fixed rate mortgages and the convenience of working with a local lender. Eligible first-time home buyers purchasing their home in a federally declared Targeted Area may also use FirstHome.

FirstHome Plus Program
The Iowa Finance Authority's FirstHome Plus program can provide cash assistance of up to to help eligible borrowers with closing costs, down payment or minor repairs. The grant must be used in conjunction with the FirstHome program and the same income limits apply.

Benefits

• The interest rate for FirstHome and FirstHome Plus loans is typically 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’ 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.

Eligibility
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:  

• Program income limits vary by county. Use this eligibility tool to determine if the borrower may be eligible. A full listing of income limits is also available here.
• The home you’re purchasing must cost no more than $289,000 if located in a Targeted Area or $247,000 if located in a Non-Targeted Area. The home must be located in Iowa.
• The buyer must occupy the home as their primary residence within 60 days of closing.
• The buyer must demonstrate an ability to repay the loan.
• The buyer must have an acceptable credit history.

Exceptions

• Eligible repeat home buyers purchasing their home in a federally-declared Targeted Area may use FirstHome
• If the buyer is a veteran who has owned a home previously, they make take advantage of FirstHome and FirstHome Plus if they apply for financing within 25 years of their final date of active duty. In order to qualify, the buyer must NOT have used a mortgage revenue bond program such as FirstHome or FirstHome Plus to finance a previous home purchase.

Resources

• QUICK CHECK: Eligibility Tool
• Homeownership program flyer
• Participating lender listing
• In some specific and rare instances, home buyers who use FirstHome or FirstHome Plus may be subject to recapture tax, in which case, the Iowa Finance Authority will reimburse the home buyer. Learn more here.
• Recapture tax documents
• Get instant notifications about IFA homeownership programs! We'll send you rate changes and much more right to your phone! Sign up for the notifications now! Text HOMEINFO to 30644.

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