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SF 505IOWASession 2025-2026State Billin committee

Iowa codifies Firsthome program offering grants, loans, and title certificates to first-time homebuyers

Original title: A bill for an act codifying a firsthome program administered by the Iowa finance authority.

Last action · March 11, 2025: Subcommittee: Rozenboom, Schultz, and Staed. S.J. 491 .Sponsors: Matt Blake and 13 others

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Introduced

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Floor Vote

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What This Bill Would Do

Senate File 505 codifies the Firsthome program administered by the Iowa Finance Authority, providing eligible first-time homebuyers with down payment and closing cost grants up to $10,000, s, and free title guaranty owner's certificates.

Why it matters

Establishes permanent statutory backing for state housing assistance, setting specific financial, credit, and occupancy criteria for residents seeking down payment and closing cost support.

Background

The Iowa Finance Authority is a state agency established to finance and support affordable housing and community infrastructure in Iowa. context

Who It Would Affect

Groups the bill's text would affect if enacted, as described in the record. Being affected is not a position for or against it.

Directly affected

first-time homebuyers

Eligible individuals gain access to down payment grants up to $10,000, second loans, and title certificates subject to credit, income, and occupancy requirements.

Directly affected

military members

Qualifying service members and surviving spouses receive specific exemptions from the three-year non-ownership rule when applying as first-time homebuyers.

Directly affected

Iowa Finance Authority

The authority is statutorily required to administer the Firsthome program and adopt implementing rules under chapter 17A.

Key Facts

The Firsthome program provides down payment and closing cost grants, second loans, and free Iowa title guaranty owner's certificates to eligible first-time homebuyers.
Grants provided to an individual under the program shall not exceed $10,000.
A first-time homebuyer is defined as an individual who has not owned a primary residence in the last three consecutive years, certain military members, or individuals purchasing in a targeted area.
Applicants must occupy the purchased home as a primary residence within sixty days of closing.

Show all 9 facts

Applicants must have a minimum credit score of 640 or submit nontraditional credit documentation.
The applicant's debt-to-income ratio must be no greater than 45 percent.
Conventional loan applicants must complete homebuyer education established by authority rule.
Applicants must contact an Iowa Finance Authority participating lender.
A second loan under the program must be repaid when the home is sold, refinanced, or the first mortgage is satisfied.

Frequently Asked Questions

Who qualifies as a first-time homebuyer under this bill?

An individual who has not owned a primary residence in the last three consecutive years, a qualifying military member who has not previously used a mortgage revenue bond program, or someone purchasing a home in a targeted area.

What is the maximum grant amount available?

Assistance provided in the form of a grant to an individual under the Firsthome program shall not exceed $10,000.

What are the credit and financial requirements to qualify?

Applicants must have a minimum credit score of 640 (or approved nontraditional credit) and a no greater than 45 percent.

What else do you want to know?

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Where This Stands

Currently in committee. The next step in the legislative lifecycle is Floor Vote.

Procedural history

2 actions

Mar 11, 2025Senate
Subcommittee: Rozenboom, Schultz, and Staed. S.J. 491 .
Mar 4, 2025SenateIntroduced
Introduced, referred to State Government. S.J. 402 .

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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