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By Tyler Thompson · Licensed Real Estate Agent · Updated April 22, 2026

Homebuyer Programs in Davenport, IA (2026)

Population: 100,938 | Median home price: $205,000 | Est. closing costs: $4,000 - $6,000

Skyline of Davenport, IA

Davenport sits along the Mississippi River as the largest city in the Quad Cities region and the county seat of Scott County, with a population of roughly 100,938 and a median home price near $205,000. First-time buyers here can stack the City of Davenport Home Buyer Down Payment Grant Program (up to $10,000 toward down payment and closing costs) with Iowa Finance Authority's FirstHome Plus $2,500 grant and the IFA 2nd Loan Program (up to 5% of the purchase price with no maximum cap). The Davenport Urban Homestead Program offers city-rehabilitated homes to income-qualified buyers at affordable prices, while Mississippi Valley Neighborhood Housing Services provides HUD-approved counseling and CDFI lending products right in town. Combining a city grant, a state grant, and a state second loan, a qualified Davenport buyer can cover most or all of their out-of-pocket cash on a moderately priced home.

City Programs in Davenport

Davenport Home Buyer Down Payment Grant Program
Type:
Grant
Amount:
Up to $10,000
First-time only:
No
Davenport Urban Homestead Program
Type:
Government Property Sale Program
Amount:
Rehabilitated home sold at affordable price
First-time only:
No

State Programs in Iowa

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

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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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

Habitat for Humanity Quad Cities
Type:
Zero-Interest Loan
Amount:
Affordable home with 0% interest mortgage; no down payment required
First-time only:
No
Mississippi Valley NHS Homebuyer Lending & Counseling
Type:
Repayable Loan
Amount:
First and second mortgage loans, FACT loans, and grants (amounts vary by product)
First-time only:
No

How to Apply

Step 1:

Check your eligibility. Most Davenport and Iowa programs target low-to-moderate income buyers, generally at or below 80% of area median income, adjusted for household size.

Step 2:

Complete homebuyer education. Mississippi Valley Neighborhood Housing Services offers an 8-hour HUD-approved Realizing the American Dream course in English and Spanish at 710 Charlotte St in Davenport. Call 563-324-1556 to register.

Step 3:

Contact the City of Davenport Community & Economic Development office at 563-326-7765 to confirm availability of the Home Buyer Down Payment Grant and Urban Homestead Program and to request applications.

Step 4:

Get pre-approved with an Iowa Finance Authority participating lender to access the FirstHome, FirstHome Plus, and 2nd Loan Programs. IFA maintains a list of approved lenders.

Step 5:

Find a home within Davenport city limits that meets the program rules. The city grant requires the property be inside Davenport; state IFA programs follow purchase price limits by county.

Step 6:

Submit your city grant application through CPED. Review and approval typically runs 2 to 6 weeks, so build that into your purchase timeline.

Step 7:

Close with all three layers stacked. Your IFA lender will coordinate the state grant and second loan, and the City of Davenport will issue its grant at or before closing.

Frequently Asked Questions

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