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

Homebuyer Programs in Urbandale, IA (2026)

Population: 46,700 | Median home price: $356,000 | Est. closing costs: $7,000 - $10,500

Skyline of Urbandale, IA

Urbandale is a growing northwest suburb of Des Moines in Polk County with about 46,700 residents and a Zillow-reported median home value near $356,000 — well above the Iowa state average. Urbandale does not operate its own city-funded down payment assistance program, but buyers here have access to some of the most generous regional programs in the state. The Polk County Down Payment Assistance Program offers up to $30,000 as a 0% deferred loan for households at or below 80% AMI, and Neighborhood Finance Corporation (NFC) adds a $15,000 Neighborhood Reinvest deferred loan for qualifying Urbandale properties. Buyers can also stack the Financial Plus Credit Union $5,000 first-time homebuyer grant, Greater Des Moines Habitat for Humanity's Homeownership: Direct program (which combines DPA with a low-interest mortgage anywhere in Polk, Dallas, or Jasper County), and state programs from the Iowa Finance Authority — including the $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. Combined, a qualifying Urbandale buyer can access more than $45,000 in stacked assistance.

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
NFC Advantage Purchase Loan
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
NFC Neighborhood Reinvest Down Payment Assistance
Type:
Deferred Loan
Amount:
$15,000
First-time only:
No

How to Apply

Step 1:

Check your eligibility. The two largest programs (Polk County DPA and NFC Neighborhood Reinvest) require household income at or below 80% of area median income, plus first-time or non-owning status at closing. Many state programs cap income around 80% AMI as well, though Homes for Iowans and Dupaco HomeReady allow higher income levels.

Step 2:

Complete homebuyer education. HOME, Inc. is the only HUD-certified housing counseling agency in Central Iowa and delivers the required 8-hour course through eHome at your own pace. Register at homeincdsm.org or call 515-243-1277. Eight hours of education is required before Polk County DPA closing.

Step 3:

Confirm your property is in a qualifying area. NFC lending areas cover parts of Urbandale tied to low-to-moderate income census tracts — check the NFC lending map or call 515-246-0010 to confirm before making an offer. The Polk County DPA applies to owner-occupied primary residences countywide.

Step 4:

Get pre-approved with a participating lender. For the Polk County $30,000 DPA, use one of the 16 participating lenders (NFC administers the program). For Iowa Finance Authority programs, choose an IFA-approved lender so you can layer the FirstHome Program, IFA 2nd Loan, and FirstHome Plus grant.

Step 5:

Find a home within program limits. Urbandale's median home value of around $356,000 is above some state program purchase price caps — confirm current IFA purchase price limits with your lender. NFC and Polk County DPA do not publish hard purchase price caps but tie eligibility to income.

Step 6:

Submit your application and close. Plan on 45-60 days from application to closing. Polk County DPA and NFC Neighborhood Reinvest are deferred loans with no payments until sale, refinance, or the home is no longer your primary residence.

Step 7:

Claim ongoing benefits. If you took the Iowa Mortgage Credit Certificate, file it with your federal tax return each year you occupy the home. Keep records of all assistance — some programs have owner-occupancy requirements that apply for years after closing.

Frequently Asked Questions

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