Iowa Down Payment Assistance Is Changing: What First-Time Buyers Need to Know

Q: How is Iowa down payment assistance changing November 2?

IFA's official announcement adds a 3% assistance loan, up to $10,000, caps the 5% assistance loan at $15,000, and ends the Plus grant for new reservations beginning that date. The percentages describe the amount of assistance—not your mortgage interest rate or your required down payment. Assistance is calculated using the purchase price or appraised value, whichever is lower. For example, if a home costs $250,000 and appraises for at least that amount, 3% is $7,500 and 5% is $12,500. These are separate options, not amounts to add together. Your lender can explain which option fits your situation.

Q: Is this free money?

The new assistance options are loans secured by your home, separate from your main mortgage. They require no monthly payments, but must be repaid when you sell, refinance, or pay off your first mortgage. IFA also says these loans cannot be moved behind a new mortgage through a process called subordination. If you hope to refinance later, ask your lender how you would repay the assistance.

Dallas Wood

Oct 5

2 min read

Buying your first home in Des Moines or Central Iowa? Iowa down payment assistance through the Iowa Finance Authority (IFA) may help with your upfront costs. Some options are changing for new loan reservations on or after November 2, 2026.

Iowa down payment assistance changes starting November 2, 2026, with an autumn home and Dallas Wood branding.

What does down payment assistance mean?

Your down payment is the portion of the home's price you pay upfront. Closing costs are separate expenses involved in completing the purchase.

IFA assistance can help eligible buyers pay these costs when used with an IFA mortgage program. It does not automatically cover everything you need to bring to closing.

How is Iowa down payment assistance changing November 2?

IFA's official announcement adds a 3% assistance loan, up to $10,000, caps the 5% assistance loan at $15,000, and ends the Plus grant for new reservations beginning that date.

The percentages describe the amount of assistance—not your mortgage interest rate or your required down payment. Assistance is calculated using the purchase price or appraised value, whichever is lower.

For example, if a home costs $250,000 and appraises for at least that amount, 3% is $7,500 and 5% is $12,500. These are separate options, not amounts to add together. Your lender can explain which option fits your situation.

Is this free money?

The new assistance options are loans secured by your home, separate from your main mortgage. They require no monthly payments, but must be repaid when you sell, refinance, or pay off your first mortgage.

IFA also says these loans cannot be moved behind a new mortgage through a process called subordination. If you hope to refinance later, ask your lender how you would repay the assistance.

Who may qualify?

IFA's FirstHome program generally considers you a first-time buyer if you have not owned your primary residence in the past three years. Some exceptions apply.

Income, purchase-price, credit and other lending requirements also apply. FirstHome requires homebuyer education. A participating lender checks your eligibility and explains your full financing costs.

What should you do next?

Ask an IFA participating lender to compare your options and explain the reservation deadline. November 2 refers to when the lender reserves the loan with IFA—not simply your closing date.

You can review IFA's down payment and closing cost programs for official details.

If you are unsure where to start, visit my first-time homebuyer resources for Des Moines and Central Iowa. I can help you understand the buying process and connect you with a lender.

Dallas L. Wood, REALTOR® | Realty ONE Group Impact Licensed to buy and sell real estate in Iowa.

Updated October 5, 2026. Based on IFA's September 17 announcement; final eligibility and available options must be confirmed by your lender.