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Iowa DPA changes Nov. 2: new 3% option, caps, Plus grant ends

Published · Homebuyer update · By the DPA Finder editorial team

Starting November 2, 2026, Iowa Finance Authority's 2nd Loan offers two choices for new reservations: up to 3% of the price (max $10,000) or up to 5% (max $15,000). IFA's Plus grant ends for new reservations the same day.

The Iowa Finance Authority (IFA) is changing its down payment and closing cost help for loan reservations made on or after Monday, November 2, 2026. IFA's 2nd Loan, which pairs with its FirstHome and Homes for Iowans first mortgages, will offer two options: a new 3% second mortgage worth up to 3% of the purchase price, capped at $10,000, and an updated 5% second mortgage worth up to 5% of the price, capped at $15,000. The amount is based on the lower of the purchase price or appraised value.

Both options are deferred loans, not grants. There are no monthly payments, but the full amount is due when you sell, refinance or pay off the first mortgage, and IFA does not allow the second mortgage to be subordinated. In a post announcing the change, IFA also said its Plus grant will be discontinued for new reservations beginning November 2. If you were counting on that grant, ask your lender whether your loan can be reserved before the switch.

The rest of the program rules stay as listed on IFA's page. FirstHome is for first-time buyers (no owned primary residence in the last three years), eligible veterans and military members, or buyers in targeted areas, with 2026 household income limits from $102,100 to $171,360 depending on county and household size and a $566,000 price limit ($692,000 in targeted areas). Homes for Iowans is open to first-time and repeat buyers with an income limit of $171,360 and a $692,000 price limit. Both require a minimum 640 credit score, and you can't combine the FirstHome and Homes for Iowans assistance options.

Eligible service members and veterans can still layer IFA's $5,000 Military Homeownership Assistance grant on top of the 2nd Loan. See our Iowa page for other programs, or read how deferred down payment loans work before you choose between the 3% and 5% options.

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