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Homes for Iowans 2nd Loan

Statewide, Iowa

Last verified
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Assistance

5%

Of the purchase price, as the program sets it

Income limit

$173,460

The household income limit the program publishes

Price cap

$665,000

Highest purchase price the program allows

Repayment

Deferred

No payments until the home is sold or refinanced

What is Homes for Iowans 2nd Loan?

Homes for Iowans 2nd Loan is a deferred second loan for homebuyers in Statewide, Iowa.

  • Homes for Iowans 2nd Loan is IFA's repeat-buyer-eligible DPA — a $5,000 deferred 0% interest non-forgivable 2nd mortgage paired with the HFI first mortgage (30-year fixed FHA/VA/USDA-RD/Conventional). NOT FTHB-restricted. Single statewide income ($173,460) and purchase-price ($665,000) tier.
  • Homes for Iowans (HFI) 2nd Loan provides up to $5,000 in down payment and closing cost assistance, structured as a 0% interest non-forgivable second mortgage with NO monthly payments. Balance is deferred until sale, refinance, payoff, or transfer of title (or end of first-mortgage term). Paired with the IFA Homes for Iowans 30-year fixed first mortgage. NO first-time-homebuyer requirement — open to repeat buyers as well as first-time buyers. Single statewide income/purchase-price tier (~$173,460 / $665,000).
  • Funding comes from State and HFA.

How much assistance does it provide?

Homes for Iowans 2nd Loan provides assistance worth 5% of the purchase price, as set by the program.

  • Buyer contribution: Borrower contribution per first-mortgage product overlays; no separate IFA contribution requirement.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Homes for Iowans 2nd Loan is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Repayment is triggered by Deferred for life of first mortgage and balance due on sale, refinance, payoff, transfer of title, or end of mortgage term.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Homes for Iowans 2nd Loan is open to buyers who will live in the home as their primary residence.

The program requires

  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO across all eligible loan products
  • A completed homebuyer education course, through IFA-approved homebuyer education through Framework, Money Smart, or HUD-approved housing counseling agency; required for all HFI borrowers prior to closing.
  • Residency: Property must be located in Iowa and used as borrower's primary residence
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays
  • NO first-time-homebuyer requirement (HFI is repeat-buyer eligible). Minimum 640 FICO. Maximum 50% DTI. Property must be primary residence. Household income at or below $173,460 (single statewide tier). Purchase price at or below $665,000. Must use IFA-approved Participating Lender. Homebuyer education required. Cannot be combined with FirstHome programs on the same transaction.

The program excludes

  • Purchases above the $665,000 price cap
  • Households above $173,460

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

Homes for Iowans 2nd Loan limits household income to $173,460.

  • The limit applies to total household income, not only the borrower’s.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Homes for Iowans 2nd Loan caps the purchase price at $665,000.

  • Eligible property types include Single-family detached, condominium, townhouse, PUD, manufactured home (per first-mortgage overlays), 1-2 unit.
  • New construction is eligible.
  • Manufactured homes are eligible.

Is there eligibility for specific groups?

Homes for Iowans 2nd Loan names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

Homes for Iowans 2nd Loan serves buyers purchasing in Statewide, Iowa.

How do you apply?

Applications for Homes for Iowans 2nd Loan go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through IFA-approved homebuyer education through Framework, Money Smart, or HUD-approved housing counseling agency; required for all HFI borrowers prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through IFA-approved lender reserves funds via IFA's Online Lender Portal at time of loan reservation; subject to program funding availability., and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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