See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 23, 2026
Homebuyer Programs in Marion, IA (2026)
Marion is one of Iowa's fastest-growing communities — a northeast suburb of Cedar Rapids in Linn County with about 43,000 residents and a median sale price around $285,000 (Feb 2026 Redfin data). Marion does not currently operate its own city-funded down payment assistance program, but buyers here can stack regional and state help. Cedar Valley Habitat for Humanity serves Linn and Benton Counties with a zero-interest mortgage and sweat-equity path to ownership. Cedar Rapids Bank & Trust, which has a Marion branch, participates in the FHLB Des Moines Home$tart grant offering up to $15,000 in forgivable down payment and closing cost assistance. Iowa Finance Authority layers in a $2,500 FirstHome Plus grant, the IFA 2nd Loan Program for up to 5% of purchase price, and the Iowa Mortgage Credit Certificate worth up to $2,000 per year in federal tax savings. Buyers open to purchasing just over the city line in targeted Cedar Rapids neighborhoods may also access NFC programs and Cedar Rapids' $14,999 First Time Home Buyer and $35,000 ROOTs programs.
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 → |
| 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:
- 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 → |
- 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
How to Apply
Step 1: Check your eligibility. Most of the biggest programs cap income at 80% of area median income. For a family of four in Linn County, that threshold is roughly $75,700. State programs like Homes for Iowans allow higher income (up to about $139,580), and Dupaco HomeReady is available to repeat buyers.
Step 2: Complete homebuyer education. HOME, Inc. is the only HUD-certified housing counseling agency in central and eastern Iowa and delivers the required 8-hour eHome course online at your own pace. Call 515-243-1277 to register. The FHLB Home$tart grant and most state programs require a completed HUD-approved course.
Step 3: Contact the right local partner. For Cedar Valley Habitat for Humanity (Linn and Benton Counties), call 319-366-4485 or visit cvhabitat.org. For the CRBT Home$tart Grant, call Cedar Rapids Bank & Trust's mortgage department — they have a Marion branch. For Iowa Finance Authority programs, use any IFA-approved lender.
Step 4: Get pre-approved with an IFA participating lender. Layering the FirstHome Program, IFA 2nd Loan, and FirstHome Plus grant requires all three to be originated through the same IFA-approved lender. Ask about the Iowa Mortgage Credit Certificate at the same time — it is claimed on your federal tax return every year you occupy the home.
Step 5: Find a home within program limits. Marion's median of $285,000 is generally within IFA purchase price caps, but confirm current limits with your lender before making an offer. Habitat home purchases go through the Habitat process, not the open market.
Step 6: Submit your application and close. Plan on 45-60 days from application to closing. The Home$tart grant carries a 5-year deed restriction requiring pro-rata repayment if you sell early, so plan to stay at least five years.
Step 7: Consider adjacent Cedar Rapids neighborhoods. If you are flexible on location, NFC lending areas and the Cedar Rapids First Time Home Buyer Program ($14,999) and ROOTs Program ($35,000) unlock substantially more assistance for targeted Cedar Rapids properties. Those programs do not apply to Marion addresses.
Frequently Asked Questions
How much down payment assistance can I get in Marion, IA?+−
Does Marion have its own city down payment assistance program?+−
Do Cedar Rapids homebuyer programs apply to Marion addresses?+−
Is Marion in Cedar Valley Habitat's service area?+−
What is the maximum home price in Marion?+−
What homebuyer education is required in Marion?+−
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