See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 23, 2026

Homebuyer Programs in Ames, IA (2026)

Population: 69,026 | Median home price: $320,000 | Est. closing costs: $6,500 - $9,500

Ames is the home of Iowa State University and the largest city in Story County, with a median home price around $320,000. First-time buyers here can combine several layers of assistance. The Story County Housing Trust First-Time Homebuyer Grant offers a $5,000 grant for qualified Story County buyers, and the Iowa Finance Authority adds the FirstHome Plus $2,500 grant or the IFA 2nd Loan Program worth up to 5% of the purchase price. Habitat for Humanity of Central Iowa provides affordable, zero-interest mortgages for qualified households in Ames, and the Story County Community Housing Corporation Community Land Trust removes land cost from the purchase price to make homeownership attainable at or below 80% AMI. The City of Ames also operates a narrowly targeted CDBG Homebuyer Assistance Program for newly constructed homes in the Baker Housing Subdivision. Stacked on top of federal FHA, VA, and USDA options, these programs can sharply lower both down payment and monthly costs.

City Programs in Ames

Program Name	Type	Amount	First-Time Only	Details
City of Ames CDBG Homebuyer Assistance Program	Deferred Loan	Down payment and closing cost assistance; amount determined through the Habitat for Humanity of Central Iowa mortgage loan program on a case-by-case basis	Yes	View →

City of Ames CDBG Homebuyer Assistance Program

Type:: Deferred Loan
Amount:: Down payment and closing cost assistance; amount determined through the Habitat for Humanity of Central Iowa mortgage loan program on a case-by-case basis
First-time only:: Yes

County Programs in Story County

Program Name	Type	Amount	First-Time Only	Details
Story County Housing Trust First-Time Homebuyer Grant	Grant	$5,000 grant	Yes	View →

Story County Housing Trust First-Time Homebuyer Grant

Type:: Grant
Amount:: $5,000 grant
First-time only:: Yes

State Programs in Iowa

Program Name	Type	Amount	First-Time Only	Details
FirstHome Plus Grant	Grant	$2,500 grant	Yes	View →
FirstHome Program (Iowa)	Government-Insured Mortgage	Low-rate 30-year mortgage with 3% down	Yes	View →
Homes for Iowans Program	Government-Insured Mortgage	Low-rate 30-year mortgage available to first-time and repeat buyers	No	View →
IFA 2nd Loan Program	Deferred Loan	Up to 5% of purchase price or appraised value (whichever is lower), no maximum cap	Yes	View →
Iowa Mortgage Credit Certificate (MCC)	Tax Credit	Up to $2,000 federal tax credit per year (50% of annual mortgage interest paid)	Yes	View →
Military Homeownership Assistance Program	Grant	$5,000 grant	No	View →

FirstHome Plus Grant

Type:: Grant
Amount:: $2,500 grant
First-time only:: Yes

FirstHome Program (Iowa)

Type:: Government-Insured Mortgage
Amount:: Low-rate 30-year mortgage with 3% down
First-time only:: Yes

Homes for Iowans Program

Type:: Government-Insured Mortgage
Amount:: Low-rate 30-year mortgage available to first-time and repeat buyers
First-time only:: No

IFA 2nd Loan Program

Type:: Deferred Loan
Amount:: Up to 5% of purchase price or appraised value (whichever is lower), no maximum cap
First-time only:: Yes

Iowa Mortgage Credit Certificate (MCC)

Type:: Tax Credit
Amount:: Up to $2,000 federal tax credit per year (50% of annual mortgage interest paid)
First-time only:: Yes

Military Homeownership Assistance Program

Type:: Grant
Amount:: $5,000 grant
First-time only:: No

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
FHA Loans	Government-Insured Mortgage	Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)	No	View →
Good Neighbor Next Door (HUD)	Government Property Sale Program	50% discount off the list price of HUD-owned homes	Yes	View →
Home Possible Mortgage (Freddie Mac)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HomeReady Mortgage (Fannie Mae)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HUD $100 Down Program	FHA-Financed HUD REO Purchase	Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.	No	View →
USDA Rural Development Loans	Government-Guaranteed Mortgage	100% financing (no down payment required); loan amount up to appraised value	No	View →
VA Loans	Government-Guaranteed Mortgage	No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)	No	View →

FHA Loans

Type:: Government-Insured Mortgage
Amount:: Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:: No

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HomeReady Mortgage (Fannie Mae)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HUD $100 Down Program

Type:: FHA-Financed HUD REO Purchase
Amount:: Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:: No

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

Type:: Government-Guaranteed Mortgage
Amount:: No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:: No

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of Central Iowa Homeownership Program	Zero-Interest Loan	Affordable home with zero-interest mortgage; sweat equity serves as down payment	No	View →
Story County Community Housing Corporation Community Land Trust	Repayable Loan	Community Land Trust home sold at reduced price (land cost removed from purchase price)	No	View →

Habitat for Humanity of Central Iowa Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable home with zero-interest mortgage; sweat equity serves as down payment
First-time only:: No

Story County Community Housing Corporation Community Land Trust

Type:: Repayable Loan
Amount:: Community Land Trust home sold at reduced price (land cost removed from purchase price)
First-time only:: No

Free eligibility check

17 programs available in Ames. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. Most local programs are capped at 80% of the Story County Area Median Income. Iowa Finance Authority income limits range from $99,800 to $173,460 depending on household size and county, so most middle-income Ames buyers qualify for at least the state programs. Students are generally not eligible for the local Story County programs.

Step 2: Complete homebuyer education. Iowa State University Extension offers the approved 'A Place of Your Own' online homebuyer education course for $45. Habitat for Humanity of Central Iowa can also direct you to an accepted education provider for their program.

Step 3: Contact Story County Housing Trust to confirm the current grant cycle. Reach SCHT Administrator Lucas Young at lyoung@midiowaplanning.org or 515-304-3524 before making an application plan — grant funding is seasonal and the window may be closed.

Step 4: Get pre-approved with an Iowa Finance Authority participating lender. For the Story County Housing Trust grant, you must use a First National Bank lender. IFA programs (FirstHome, FirstHome Plus, Homes for Iowans, IFA 2nd Loan, Mortgage Credit Certificate) work only through IFA-approved lenders.

Step 5: If you are interested in a Habitat or Community Land Trust home, apply separately. Call Habitat for Humanity of Central Iowa at 515-232-8815 for the Habitat homeownership program, or Story County Community Housing Corporation at 515-292-3676 for a Community Land Trust home in Ames.

Step 6: Find a home that meets program rules. SCHT, Habitat, and SCCHC homes must be in Story County. The City of Ames CDBG Homebuyer Assistance Program only applies to new construction in the Baker Housing Subdivision.

Step 7: Submit applications with your lender. Your lender coordinates the SCHT grant, IFA second loan, and any other sources so all funds arrive at closing.

Frequently Asked Questions

How much down payment assistance can I get in Ames?+

A qualified Ames buyer can stack the Story County Housing Trust First-Time Homebuyer Grant ($5,000), the Iowa Finance Authority FirstHome Plus Grant ($2,500), and the IFA 2nd Loan Program (up to 5% of purchase price). Buyers working with Habitat for Humanity of Central Iowa or the Story County Community Housing Corporation Community Land Trust can access dramatically reduced home prices through those nonprofit homeownership models instead. Combined with federal FHA, VA, or USDA low-down-payment loans, most Ames buyers under 80% AMI can close with very little of their own cash.

Do I have to be a first-time homebuyer?+

Several programs require it. The Story County Housing Trust Grant, the City of Ames CDBG Homebuyer Assistance Program, the IFA FirstHome Program, and the FirstHome Plus Grant all require first-time buyer status (no home ownership in the past three years). The Homes for Iowans Program and the IFA 2nd Loan Program are open to both first-time and repeat buyers. Habitat for Humanity and the Community Land Trust focus on need and income rather than first-time buyer status.

What is the maximum home price in Ames for these programs?+

The Story County Housing Trust Grant does not publish a fixed maximum purchase price but requires a standard lender pre-approval. IFA programs apply their own purchase price limits (typically well above the Ames $320,000 median, so most homes qualify). The City of Ames CDBG Homebuyer Assistance Program is tightly scoped to newly constructed homes in the Baker Housing Subdivision. Habitat and Community Land Trust homes are priced on their own affordability formulas rather than open-market prices.

What homebuyer education is required?+

Most programs in Ames require HUD-approved homebuyer education. Iowa State University Extension offers the online 'A Place of Your Own' course for $45, which is widely accepted. Habitat for Humanity of Central Iowa requires coursework as part of its homeownership partnership. IFA products typically require an approved homebuyer education course as well.

How does the Story County Community Housing Corporation Community Land Trust work?+

SCCHC is a nonprofit Community Land Trust that owns the land under its homes and leases it to homeowners. Because the land cost is removed from the purchase price, the home itself is substantially cheaper than a comparable open-market house. When a CLT owner sells, the home is resold under a formula that keeps it affordable for the next buyer. Households at or below 80% of Story County AMI (excluding students) can apply through Martin Property Management with no application fee.

Does the City of Ames offer homebuyer assistance outside the Baker Housing Subdivision?+

The current City of Ames CDBG Homebuyer Assistance Program is specifically limited to newly constructed homes in the Baker Housing Subdivision in partnership with Habitat for Humanity of Central Iowa. For Ames buyers looking elsewhere in the city, the Story County Housing Trust Grant, Iowa Finance Authority programs, and Habitat or SCCHC homeownership tracks are the primary options.