One of the biggest misconceptions I hear from people thinking about buying their first home is that they need to have a huge amount of money saved up before they can even start looking.
I’ve talked to plenty of people who would love to own a home but assume they can’t afford it. Maybe they’re worried about their credit score, don’t have 20% saved for a down payment, or simply don’t know where to begin.
Here’s what I always tell them: before you decide homeownership is out of reach, talk to a local lender and your favorite Thrive Realty agent.
You might be surprised by what’s available.
There are actually quite a few programs designed to help people purchase homes, including low down payment loans, down payment assistance, grants, and financing options that many first-time buyers don’t even realize exist.
And here in Southeast Iowa, where we still have some relatively affordable housing opportunities, these programs can make a real difference.
One of the first programs I’d encourage buyers to ask about is the Iowa Finance Authority’s FirstHome program.
This program is designed to help qualifying first-time homebuyers purchase a home with affordable mortgage financing. Depending on eligibility, buyers may also qualify for assistance with their down payment and closing costs.
For example, Iowa’s FirstHome program currently offers a $2,500 down payment and closing cost grant for eligible buyers. There are also second-loan assistance options that can help reduce the amount of money you need upfront. Program options are changing in November 2026, so it’s important to review the latest details with your lender.
Another option is the Homes for Iowans program, which isn’t limited to first-time buyers. It offers mortgage financing and potential down payment assistance to qualifying Iowa homebuyers.
These are real programs that participating local lenders can help you explore.
And they’re not the only options.
FHA loans are another popular option for first-time buyers. These loans can allow qualifying buyers to purchase a home with as little as 3.5% down and may offer more flexibility for certain credit situations than some conventional loan programs.
There are also conventional mortgage programs that allow qualifying buyers to put as little as 3% down.
And here’s one that I’m personally a big believer in: USDA Rural Development loans.
I can actually speak from experience on this one because I used a USDA loan to purchase my very first home.
At the time, I was able to purchase that home with zero dollars down. It gave me the opportunity to become a homeowner without having to save up a large down payment, and looking back, that purchase was really the beginning of my own real estate journey.
It’s pretty amazing to think about how something as simple as having access to the right financing program can change your financial future.
That first home helped get me started in real estate, and today, as a real estate broker and investor, I understand just how valuable that opportunity was.
That’s one of the reasons I’m so passionate about making sure buyers know what options are out there.
Because we live in Southeast Iowa, with so many smaller communities and rural housing opportunities, USDA financing is especially worth exploring. For eligible buyers and properties, certain USDA loan programs offer the ability to purchase a home with no down payment.
That’s right. Zero down.
Now, that doesn’t mean buying a home is completely free. There may still be closing costs, inspections, insurance, and other expenses involved. And every program has its own qualifications.
But it does mean that the traditional idea of needing 20% down to buy a home simply isn’t true for everyone.
There are also special financing opportunities for qualifying veterans and military service members, including VA loans and Iowa’s Military Homeownership Assistance Program.
Something else that I really want to highlight is that we have some excellent resources right here in Southeast Iowa.
The Southeast Iowa Regional Planning Commission (SEIRPC), located in West Burlington, administers housing programs supported by state and federal funding. One of those resources is the Great River Housing Trust Fund, which works to improve access to affordable housing throughout Des Moines, Henry, Lee, and Louisa counties.
What many people may not realize is that these local programs can include down payment assistance for qualifying homebuyers, as well as assistance with improvements to existing homes.
And we’re not just talking about programs available somewhere else in the state. These are resources specifically intended to help people right here in our communities.
Grant funding and eligibility can vary based on household income, the property, and available funds, but I would strongly encourage buyers to explore these opportunities.
In fact, SEIRPC is one of the resources I would recommend contacting if you’re thinking about buying your first home in Southeast Iowa.
And this brings me to something I think is incredibly important: working with a knowledgeable local lender.
A good local lender isn’t just there to tell you whether you qualify for a mortgage.
They can help you explore different financing programs, identify grants and down payment assistance opportunities, calculate your expected monthly payment, and determine how much money you may actually need to bring to closing.
And sometimes, knowing about one additional financing or grant program can be the difference between someone continuing to rent and becoming a homeowner.
That’s why I encourage people to work with lenders who understand our local market and the resources available to Iowa buyers.
And that’s where we come in at Thrive.
Our job is to help you understand the local real estate market, connect you with knowledgeable local lending professionals, find properties that fit your budget and financing, and guide you through the entire buying process.
We’ll help you understand what to look for in a home, how to evaluate the condition of a property, what to expect during inspections, how to put together a competitive offer, and what happens between getting an accepted offer and closing day.
Buying your first home can feel intimidating, but it really doesn’t have to be.
I also think Southeast Iowa offers an advantage that we sometimes take for granted.
While buyers in many parts of the country are struggling to find entry-level homes at reasonable prices, we still have opportunities throughout Burlington, West Burlington, Fort Madison, Mount Pleasant, and surrounding communities at price points that can make homeownership more attainable.
Of course, the price of the home is only part of the equation. Property taxes, insurance, maintenance, utilities, and your overall monthly payment all matter.
I always encourage buyers to focus on a payment they’re comfortable with, not simply the maximum amount a bank might approve them for.
Owning a home should be something that helps you build a better financial future, not something that makes you feel stretched every month.
And while renting may be the right choice for some people, buying a home can provide an opportunity to build equity, establish roots in a community, and have a place that’s truly your own.
So if you’re currently renting, living with family, or have been thinking about buying your first home but don’t know where to start, here’s my advice.
Don’t spend the next six months assuming you can’t afford it.
Reach out to your favorite Thrive Realty agent and let’s have a conversation.
We can help connect you with a local lender who understands the programs available in Iowa, help you explore your financing options, and show you what homes might fit your budget.
We can also help point you toward local resources like SEIRPC and the Great River Housing Trust Fund to see what additional assistance may be available.
Even if you’re not quite ready to buy today, we can help you put together a plan to get there.
I know firsthand how much of a difference the right financing program can make. After all, that’s how my own homeownership journey started.
And who knows? Your first home might just be the beginning of something much bigger, too.
Don’t just live. Thrive.
John Mercer Broker/Owner, Thrive Realty
