See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 22, 2026
Homebuyer Programs in Cedar Rapids, IA (2026)
Cedar Rapids homebuyers have access to one of Iowa's most generous city-run first-time homebuyer programs, plus several nonprofit and lender-based options that can be combined with state and federal assistance. The City of Cedar Rapids offers forgivable down payment and closing cost assistance of up to $14,999 through its First Time Home Buyer Program, which is fully forgiven after five years of owner-occupancy. For buyers willing to purchase in designated reinvestment neighborhoods, the Cedar Rapids ROOTs Program provides up to $35,000 in forgivable assistance — one of the largest local DPA awards anywhere in Iowa.
Cedar Rapids sits in Linn County and has a median home price near $190,000, well below the national median, which means buyers often need less cash to close than in larger metros. Typical closing costs for a Cedar Rapids purchase run between $3,500 and $5,500. When you layer city assistance on top of the Iowa Finance Authority (IFA) FirstHome Program, the FirstHome Plus $2,500 grant, or the IFA 2nd Loan, many first-time buyers can close on a home with very little out of pocket.
Beyond government programs, Cedar Rapids has a strong nonprofit ecosystem. Neighborhood Finance Corporation (NFC) serves Linn County with its Neighborhood Reinvest DPA ($15,000 deferred loan) and Journey to Homeownership (J2H) program. Cedar Valley Habitat for Humanity builds and sells homes to households earning 30% to 60% of area median income. Cedar Rapids Bank & Trust offers the FHLB Des Moines Home$tart grant of up to $15,000 for income-eligible first-time buyers. Free HUD-approved housing counseling is available through Horizons, A Family Service Alliance, which is required for many of these programs.
All buyers in Cedar Rapids also have access to federal programs including FHA, VA, USDA Rural Development (available in surrounding rural Linn County areas), Good Neighbor Next Door, HUD Homes, HomeReady, and Home Possible. The key is stacking the right programs — for example, many buyers combine an IFA FirstHome FHA loan with the FirstHome Plus $2,500 grant and the City of Cedar Rapids $14,999 forgivable DPA for a nearly no-out-of-pocket purchase.
City Programs in Cedar Rapids
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Cedar Rapids First Time Home Buyer Program | Forgivable Loan | Up to $14,999 | Yes | View → |
| Cedar Rapids ROOTs Program | Forgivable Loan | Up to $35,000 | Yes | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to $14,999
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $35,000
- 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 ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Cedar Rapids Bank & Trust Home$tart Grant | Grant | Up to $15,000 | Yes | View → |
| Cedar Valley Habitat for Humanity Homeownership Program | Zero-Interest Loan | Full home purchase — zero-interest mortgage | No | View → |
| NFC Advantage Purchase Loan | Forgivable Loan | First mortgage up to $250,000, second mortgage up to 15% LTV, plus forgivable renovation loan up to $10,000 | No | View → |
| NFC Journey to Homeownership (J2H) | Deferred Loan | $10,500 or $15,000 | No | View → |
| NFC Neighborhood Reinvest Down Payment Assistance | Deferred Loan | $15,000 | No | View → |
- Type:
- Grant
- Amount:
- Up to $15,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Full home purchase — zero-interest mortgage
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- First mortgage up to $250,000, second mortgage up to 15% LTV, plus forgivable renovation loan up to $10,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- $10,500 or $15,000
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- $15,000
- First-time only:
- No
How to Apply
Start with a HUD-approved housing counselor. Cedar Rapids buyers should contact Horizons, A Family Service Alliance (319-398-3943), which provides free first-time homebuyer education and one-on-one counseling. Most city, state, and nonprofit DPA programs require counseling certification before closing.
Get pre-approved with an IFA-participating lender. Iowa Finance Authority programs (FirstHome, FirstHome Plus, IFA 2nd Loan, Homes for Iowans) must be originated through an approved lender. Ask your lender to pull quotes with and without IFA layering so you can compare.
Contact the City of Cedar Rapids First Time Home Buyer Program. The program is administered by the City's Community Development department. Call Jennifer Barten at 319-286-5872 or visit cedar-rapids.org to request the application packet. Applications are accepted year-round but funding is limited and typically first-come, first-served.
Check whether the home is in a ROOTs-designated neighborhood. If yes, ask about the Cedar Rapids ROOTs Program instead of (or in addition to) the standard FTHB Program. ROOTs provides up to $35,000 in forgivable assistance for homes priced at or below $175,000 in designated reinvestment areas.
Apply for nonprofit and lender grants. Neighborhood Finance Corporation (515-246-0010) takes applications for the $15,000 Neighborhood Reinvest DPA and the Journey to Homeownership (J2H) program. Cedar Rapids Bank & Trust accepts Home$tart grant applications on a first-come basis each year — funds typically run out in the first few months.
Explore Habitat for Humanity if you are below 60% AMI. Cedar Valley Habitat for Humanity (319-366-4485) serves Linn and Benton counties and offers a zero-interest mortgage to qualifying partner families who complete sweat-equity hours.
Layer federal programs. FHA, VA, USDA, and HomeReady/Home Possible loans can all be combined with IFA state programs and local DPA. Your lender should run side-by-side scenarios.