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Home buyer help · Iowa

Buying a home in Iowa: the help you may qualify for.

Down payment assistance, property tax exemptions and veteran benefits in Iowa, gathered from official state sources and explained in plain English. Every program has its own rules, so check with the agency before you count on it.

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Last checked November 11, 2026Sources state agencies

Down payment and closing cost help

From the Iowa Finance Authority.

  • FirstHome and Homes for Iowans assistance

    3% (up to $10,000) or 5% (up to $15,000)

    A second mortgage repaid when you sell, refinance or pay off the first mortgage (new limits from November 2, 2026).

  • Military Homeownership Assistance Military and heroes

    A $5,000 grant

    For service members and veterans, usable with FirstHome or Homes for Iowans. Veterans generally count as first-time buyers.

    Limited funding each fiscal year; get approval before closing.

    Military Homeownership Assistance details

Who qualifies: Income limits ($102,100 to $171,360) and a price limit of $566,000 (higher in targeted areas), through a participating lender.

Property tax exemptions and credits

Exemptions lower your home’s taxable value or your bill. Most aren’t automatic: you apply with your city or county assessor. Iowa’s official exemptions information.

For homeowners who live in the home

  • Homestead exemption

    10% of your home's taxable value ($5,500 to $20,000)

    A 2026 law replaced the old homestead credit with this exemption, starting with the 2026 assessment (taxes paid in 2027 and 2028).

    How to apply: With your city or county assessor. (2026 Iowa Acts, SF 2472)

For homeowners 65 and older

  • Age 65 or older exemption

    Another $6,500 of taxable value

    You must be 65 by January 1 of the year you apply.

    How to apply: With your assessor. (Iowa Department of Revenue)

For veterans

  • Disabled veteran homestead credit

    Can cover the full tax on your home

    For veterans with a permanent 100% service-connected rating, or individual unemployability paid at 100%. Ask your assessor about current rules.

    How to apply: With your assessor. (Iowa Code chapter 425)

Want to see which ones fit you? Answer a few questions in the property tax exemptions checker.

If you serve or served

  • VA home loan: available in every state, often with no down payment and no monthly mortgage insurance. You’ll need a Certificate of Eligibility. See VA home loans.
  • Military Homeownership Assistance: A $5,000 grant. For service members and veterans, usable with FirstHome or Homes for Iowans. Veterans generally count as first-time buyers.
  • Property tax: veterans in Iowa may qualify for Disabled veteran homestead credit. See the details above.

Your next steps

  1. Work out a monthly cost you’re comfortable with in the home cost calculator. It also lists Iowa’s programs with the loans you may qualify for.
  2. Talk with a free or low-cost HUD-approved housing counselor. Find one near you.
  3. Ask each lender which of these programs they work with, and compare Loan Estimates from at least three.
  4. Follow the step-by-step home buyer’s guide from budget to keys.

Common questions

Does Iowa have down payment help for home buyers?

Yes. Programs from the Iowa Finance Authority include FirstHome and Homes for Iowans assistance, Military Homeownership Assistance. Income limits ($102,100 to $171,360) and a price limit of $566,000 (higher in targeted areas), through a participating lender. Funding and rules change often, so check with the agency or a participating lender.

Does Iowa have a homestead or property tax exemption for homeowners?

Yes. Homeowners who live in the home may qualify for: Homestead exemption. Apply with your city or county assessor; most exemptions aren't automatic.

Is there help for veterans buying a home in Iowa?

VA home loans are available in every state, often with no down payment. Iowa also has a program with benefits for military, veterans or other public servants: Military Homeownership Assistance. Veterans may also qualify for property tax benefits such as Disabled veteran homestead credit.

Sources: Iowa Finance Authority and Iowa’s property tax office, linked above. Last checked November 11, 2026. Programs, amounts, income limits and funding change often, sometimes every year. Know Before You Own doesn’t recommend lenders or take referral fees. This page is general education, not legal, tax or lending advice. See other states.