See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 23, 2026
Homebuyer Programs in Ames, IA (2026)
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 → |
- 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 → |
- 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 → |
- Type:
- Grant
- Amount:
- $2,500 grant
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Low-rate 30-year mortgage with 3% down
- First-time only:
- Yes
- Type:
- Government-Insured Mortgage
- Amount:
- Low-rate 30-year mortgage available to first-time and repeat buyers
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to 5% of purchase price or appraised value (whichever is lower), no maximum cap
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Up to $2,000 federal tax credit per year (50% of annual mortgage interest paid)
- First-time only:
- Yes
- 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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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 → |
- 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
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- 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
- 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
- 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
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- 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 → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable home with zero-interest mortgage; sweat equity serves as down payment
- First-time only:
- No
- Type:
- Repayable Loan
- Amount:
- Community Land Trust home sold at reduced price (land cost removed from purchase price)
- First-time only:
- No
How to Apply
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.
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.
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.
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.
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.
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.
Submit applications with your lender. Your lender coordinates the SCHT grant, IFA second loan, and any other sources so all funds arrive at closing.