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

Homebuyer Programs in Johnston, IA (2026)

Population: 24,384 | Median home price: $340,000 | Est. closing costs: $7,000 - $10,000

Skyline of Johnston, IA

Johnston is a fast-growing northwestern suburb of Des Moines in Polk County, with a population of roughly 24,400 and a median home price in the mid-$300,000s — well above the Iowa statewide median. Despite higher prices, buyers here have access to one of the strongest county-level down payment programs in the state: the Polk County Down Payment Assistance Program, which offers a $30,000 deferred 0% interest loan to buyers at or below 80% of area median income. Layer that with Iowa Finance Authority programs (the $2,500 FirstHome Plus Grant, the IFA 2nd Loan Program up to 5% of purchase price, and the Iowa Mortgage Credit Certificate worth up to $2,000 per year in federal tax credits), plus Greater Des Moines Habitat for Humanity's homeownership program and the Financial Plus Credit Union $5,000 first-time buyer grant, and Johnston buyers can stack tens of thousands of dollars in assistance. With closing costs typically $7,000–$10,000 on a median-priced home, combining county, state, and credit union assistance with federal FHA, VA, or USDA financing can substantially reduce your cash to close.

County Programs in Polk County

Polk County Down Payment Assistance Program
Type:
Deferred Loan
Amount:
$30,000
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

Financial Plus Credit Union First-Time Homebuyer Grant
Type:
Grant
Amount:
$5,000 grant
First-time only:
Yes
Greater Des Moines Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with below-market interest rate
First-time only:
No

How to Apply

Step 1:

Check your eligibility. The Polk County DPA requires household income at or below 80% AMI; Iowa Finance Authority programs have their own county-specific income limits (FirstHome at 80% AMI; Homes for Iowans allows higher). Minimum credit score for IFA programs is 640.

Step 2:

Complete homebuyer education. Iowa Finance Authority programs require a HUD-approved homebuyer education course. The Polk County DPA specifically requires 8 hours of homebuyer education completed prior to closing. Your IFA-participating lender can point you to an approved online course.

Step 3:

Contact a local housing partner. For Polk County DPA questions, apply through a participating first-mortgage lender (the fund is administered by Neighborhood Finance Corporation). For Greater Des Moines Habitat for Humanity, call 515-471-8686. For Financial Plus Credit Union, call the loan hotline at 515-669-3380.

Step 4:

Get pre-approved for a mortgage. Work with a Polk County DPA participating lender who can package the $30,000 county deferred loan alongside your IFA first mortgage. Ask the lender to confirm how all assistance layers stack at closing.

Step 5:

Find a home within program limits. The 2026 IFA purchase price cap is $544,000 (up to $665,000 in targeted areas), which is above Johnston's median of roughly $340,000. The Polk County DPA requires the home be owner-occupied as a principal residence.

Step 6:

Submit your applications. Your lender submits Polk County DPA and IFA paperwork; Habitat applicants work through a separate partner-family selection process with Greater Des Moines Habitat for Humanity.

Step 7:

Close on your home. All grants and deferred loans are applied at closing. The Polk County DPA loan is deferred until sale, refinance, or the home ceases to be your primary residence.

Frequently Asked Questions

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