Your first home, with realistic numbers.
What it costs to buy, what you'll pay each month, and the Iowa programs that help with the down payment. Read this first, then bring your questions to a call.
Every cost, estimated before you tour.
Most first-time buyers plan for the down payment and get surprised by everything else. Here is every line, in the order you'll pay it. On the call we fill in your numbers.
Iowa doesn't use private title insurance. An attorney reviews the property's abstract, and the state's Iowa Title Guaranty program backs the title. It's inexpensive, and it's why the abstract gets updated before closing.
Iowa property taxes are paid in arrears, in September and March. At closing the seller usually credits you for the taxes they owe up to that day, which lowers your cash to close.
Property taxes change by city and school district. The monthly payment you plan around should use the county's current bill for that address. See the local rates.
Estimates are for planning. Final figures come from your lender, title company and closing documents, and depend on the providers you choose.
Help with the down payment.
The Iowa Finance Authority (IFA) runs the state's homebuyer programs. You don't apply to IFA directly. You apply through a lender that's approved to offer them, and the lender checks whether you qualify.
You count as a first-time buyer if you haven't owned the home you lived in during the last 3 years. Eligible veterans and buyers in a targeted area qualify either way.
| Linn County, 2026 | Household of 1–2 | 3 or more |
|---|---|---|
| Income limit | $105,300 | $121,095 |
| Targeted area income limit | $126,360 | $147,420 |
Purchase price up to $566,000 ($692,000 in a targeted area). Minimum credit score 640, and your score doesn't change the rate. Works with FHA, VA, USDA and conventional loans. Homebuyer education is required, and you need to move in within 60 days of closing. In Linn County the only targeted area is census tract 19; your lender can check an address.
Reserved through Nov. 1, 2026: a $2,500 grant you don't repay, or a second loan of up to 5% of the price.
Reserved Nov. 2, 2026 or later: a second loan of 3% (up to $10,000) or 5% (up to $15,000). No grant.
The second loans have no monthly payment. You repay them when you sell, refinance or pay off the mortgage.
For first-time and repeat buyers. Household income up to $171,360 and purchase price up to $692,000. Down payment help comes as the second loan only. Same credit, education and move-in rules as FirstHome.
A $5,000 grant toward down payment and closing costs, and it can be added to FirstHome or Homes for Iowans. You need at least 90 days of active duty between Aug. 2, 1990 and Apr. 6, 1991, or from Sept. 11, 2001 on. Surviving spouses may qualify. It has to be approved before closing, and funding for the year is limited.
New single-family homes built for income-qualified buyers, with up to $35,000 in down payment assistance. 2025 income limits start at $59,000 for one person and $84,250 for four. Only a limited number of homes remain, so ask the city what's left: ROOTs@cedar-rapids.org or 319-286-5196.
Sources: Iowa Finance Authority, FirstHome, Homes for Iowans, Down Payment and Closing Costs and Military Homeownership Assistance pages, 2026 income and purchase price limits (effective June 9, 2026) and program update of Sept. 17, 2026; City of Cedar Rapids, ROOTs; KCRG, June 2026; Iowa Title Guaranty rate sheet. Programs and limits change, and your lender confirms eligibility. This is general information, not financial or legal advice.
Four steps to the keys.
Income, savings and monthly debts, roughly. Which programs you might fit, and what payment you're comfortable with.
Pre-approval with a lender that offers the IFA programs, and the homebuyer education course if you're using them.
Every home you like gets an estimated monthly payment and cash to close before you fall for it.
Offer, inspection, appraisal and closing, with each deadline on your calendar before it arrives.
What first-time buyers ask me.
I owned a home years ago. Am I still a first-time buyer?
For FirstHome, yes, if you haven't owned the home you lived in during the last three years. If you have, Homes for Iowans works for repeat buyers.
How much do I need to have saved?
It depends on the loan and the price. Down payments start at 3% on many loans and 0% on VA and USDA, and closing costs come on top. Iowa's assistance can cover part of it. Bring a rough savings number to the call and you'll leave with a working estimate.
Is the IFA second loan free money?
No. It has no monthly payment, but you pay it back when you sell, refinance or pay off the mortgage. The grant is the only part you don't repay, and it ends for loans reserved on or after Nov. 2, 2026.
Should I talk to a lender first or to you?
Either order works. If you start with me, I'll introduce you to lenders who offer the IFA programs so you're not guessing which ones do.
Start with your budget.
The first call is free, by phone or over coffee somewhere in the Cedar Rapids area. You'll leave knowing what you can afford and which programs to ask a lender about.