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Down Payment Assistance Programs

Home Down Payment Assistance Programs

African American couple closing on a house

Throughout the Cedar Valley, several not-for-profit down payment assistance programs provide funds to qualified home buyers to help them with down payments and closing costs. Many of these programs do not require repayment if you meet their guidelines.


City of Waterloo Community Development

Down Payment Assistance Program

The Community Development Down Payment Assistance Program (CDDP) provides funds, not to exceed $5,000, to help first-time home buyers purchase affordable housing. This program is a collaborative effort between the City of Waterloo Community Development and numerous local lenders. Income eligible households must purchase an existing home in the Consolidated Urban Revitalization Area (CURA) of Waterloo. The assistance is given in the form of a five-year forgivable loan.

New Construction Down Payment Assistance Programs

Depending upon funding availability, Community Development offers down payment assistance for site specific new construction homes in targeted areas. The household must be income eligible, obtain a loan from a participating lender, and attend home buyer education classes. Assistance is given in the form of a forgivable loan that may range from 25-30% of the sales price. Guidelines may vary by program.

Please contact Community Development to check funding availability.

For more information on the programs offered by Community Development, including a list of participating lenders, call (319) 291-4429 or visit their website.

Waterloo Housing Authority Down Payment Assistance Program

This program has been in existence since 1997 and has provided opportunities for first time home buyers to receive down payment assistance grants. Grants are awarded based on income eligibility. Properties must be located within the city limits. A forgivable 2nd mortgage in the amount of the grant is required. Eligible participants are low to moderate income individuals and families who have been residents of Waterloo for at least one year. Funds are awarded based on availability of program funding.

For more information, call the Waterloo Housing Authority at (319) 233-0201 or visit their website.

Iowa Finance Authority

The Iowa Finance Authority (IFA) provides a range of housing assistance programs, including a single-family new construction loan program and a multifamily loan program. IFA also offers loan programs with flexible credit qualifications through qualified lenders to provide both first-time and repeat home buyers with below market interest rates, down payment and closing cost assistance.

  • FirstHome:
    Offers qualified first-time home buyers affordable mortgage financing with a low interest rate.
  • FirstHome Plus:
    Provides affordable mortgage financing to income-qualified first-time home buyers, plus cash assistance of $2,500 for down payment and closing.
  • Homes of Iowans:
    May assist both repeat and first-time Iowa home buyers who are not eligible for the FirstHome program.
  • Homes of Iowans Plus:
    Provides up to $2,500 in assistance to help eligible repeat and first-time home buyers with down payment, closing costs or minor repairs.
  • Military Service Member Home Ownership Assistance Program:
    The Military Service Member Home Ownership Assistance Program supports current and former military service members who are or have served 90 days active duty since 9/11/2001 (other than training) with purchasing their primary residence in the State of Iowa. The program provides $5,000 that may be used as a down payment on a qualified home. The Iowa Department of Veterans Affairs and the Iowa Finance Authority administer the program.
  • Mortgage Credit Certificate:
    Provides a federal tax credit to eligible borrowers based on the amount of mortgage interest paid.
For more information, please contact IFA at: (800) 432-7230 or online at their website.
Participating lenders that work with IFA's programs are listed on their website.
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