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Additional IDA Funds Available for First-Time Homebuyers — 

Additional IDA Funds Available for First-Time Homebuyers
Iowans who qualify and want to purchase a first home can access new matching funds
for an Individual Development Account (IDA)

Four Iowa credit unions (Alliant Credit Union, Dubuque; Community 1st Credit Union, Ottumwa; Greater Iowa Credit Union, Ames; and Linn Area Credit Union, Cedar Rapids) received funds from Federal Home Loan Bank (FHLB) of Des Moines. These funds are only available to first-time homebuyers or those who have not owned a home or had their name on a mortgage for the past 36 months.

Like the IDA program, there are income restrictions on the FHLB funds. Click here to view the current income limits for Iowa. 

FHLB, as well as other sources, indicates the income limits will be updated within the next 90 days (between June 1 and August 1.) The 2011 amounts will be posted on the Iowa Credit Union Foundation's website when they are released.

When comparing these standards to the IDA income limits, the IDA standards are less than 50 percent of the MRB limits and less than "Very Low Income" on the HUD limits.

Simply put, if a person qualifies for an IDA, they will qualify for the FHLB funds. Individuals can receive up to $5,000 in FHLB funds to be used for down payment and closing costs. (IDA limits are $2,000 for an individual and $4,000 for a household.) Therefore, a person could have the following combinations of funds:


IDA Match

FHLB Funds


$2,000 savings


$5,000 (maximum)




IDA Match

FHLB Funds


$4,000 savings


$5,000 (maximum)


These FHLB funds are targeted to urban areas. The target communities are:

  • Ames Metropolitan Service Area (MSA)
  • Cedar Rapids MSA
  • Davenport MSA
  • Des Moines
  • Dubuque
  • Iowa City
  • Council Bluffs
  • Sioux City
  • Cedar Falls/Waterloo

There are some contiguous counties included in these MSA’s so please review the MRB chart. You can also compare these communities to the fields of membership for Alliant, Community 1st, Greater Iowa and Linn Area credit unions.

As with the current IDA program, a saver will need to meet the terms of membership for the credit union in addition to making deposits to their IDA account from their earnings for a minimum of six months. They’ll also need to complete financial education and homebuyer education.

Unlike the IDA funds, the FHLB money is considered a grant to the purchaser. That means if the purchaser sells the home within five years, they may need to repay a proportion of the grant based on how long the purchaser lives in the home.

If you work with individuals or families who you think may qualify, please refer them to one of the credit union contacts below:

Alliant Credit Union, Dubuque
Joe Gonalez: 563.585.3733
Brooke Holven: 319.362.3008

Community 1st Credit Union, Ottumwa
Anne Hagen: 641.683.6415
Sonia Sancho: 641.683.6416

Greater Iowa Credit Union, Ames
Linda Gibbs: 515.232.8943

Linn Area Credit Union, Cedar Rapids
Sandra Cleppe: 319.378.0101

Iowa Credit Union Foundation | 7745 Office Plaza Drive N Suite 170 | West Des Moines, Iowa 50266 | P 800.860.6180 | info@iowacreditunionfoundation.org