Who qualifies for Iowa Finance Authority 2nd Loan Program?
Available to first-time and repeat buyers purchasing a primary residence in Iowa. Repayment is due at sale, refinance or payoff of the first mortgage.
| Detail | Program terms |
|---|---|
| Assistance | Up to 5% of the home's sale price or appraised value (whichever is lower), with no maximum |
| Type | Deferred-payment loan |
| Minimum credit | 640 |
| First-time buyer | Not required |
| Income limits | $171,360 |
How does Iowa Finance Authority 2nd Loan Program work with an FHA loan?
Iowa's 2026 FHA one-unit limits start at $541,287, which supports a price of about $560,000 with 3.5% down.
Where do I confirm current terms?
On the official page: https://opportunityiowa.gov/housing/homeownership-programs/down-payment-and-closing-costs-programs. Programs can pause when funds run out, so confirm availability with a participating lender.
“The 2nd Loan Program provides a loan of up to 5% of the home’s sale price or appraised value (whichever is lower), with no maximum.” — Iowa Finance Authority
Frequently asked questions
Sources
- Iowa Finance Authority — Iowa Finance Authority 2nd Loan Program (official page, verified October 23, 2026)
- HUD — 2026 FHA limits
Data last updated October 23, 2026.
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