The Truth About Down Payment Assistance in Iowa
Molly Maguire helps first-time buyers access thousands in down payment assistance regularly. Here’s what most people don’t know about these programs.
It’s Not a Loan You Repay
Iowa Finance Authority assistance doesn’t require monthly payments in most programs. It’s forgivable assistance that disappears after you’ve lived in the home for a certain period (often 5-10 years). Stay in the home, and you never repay it.
You Can Stack Multiple Programs
Combine IFA assistance with FHA’s low down payment, add in seller-paid closing costs, and suddenly you’re buying a home with $2,000-$3,000 total out of pocket. Molly structures these combinations regularly.
Income Limits Are Higher Than You Think
Most IFA programs allow household income up to $100,000-$120,000. If you assumed you make too much, check again. Limits vary by county and family size.
It Doesn’t Just Cover Down Payment
Assistance can pay for closing costs too—title insurance, appraisal, origination fees. This matters because saving $15,000 feels impossible, but saving $3,000 is doable for most working families.
Your Credit Doesn’t Have to Be Perfect
Most programs accept 620+ credit scores, with some going lower. If you’ve got decent credit and steady income, you likely qualify for something.
The Application Process Is Straightforward
You’ll need to complete a homebuyer education course (6-8 hours online), provide standard mortgage documentation, and work with an approved lender like Molly. The education course is actually useful—budgeting, maintenance, avoiding foreclosure.
These Programs Won’t Last Forever
Down payment assistance programs have limited funding each year. When funds run out, you’re on a waiting list. If you’re thinking about buying in the next 6-12 months, Molly recommends starting the pre-approval process now.
Molly Maguire, NMLS #34702
Midwest Family Lending | Urbandale, Iowa
All loans subject to approval. Equal Housing Lender.
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