Down Payment Assistance
Every year, down payment assistance goes unused because buyers don’t know it exists. Minnesota Housing offers deferred loans and monthly-payment loans that can cover down payment and closing costs for eligible buyers — stackable with FHA, VA, USDA, and conventional first mortgages. Across the river, WHEDA (the Wisconsin Housing and Economic Development Authority) runs its own Easy Close and Capital Access assistance alongside WHEDA first mortgages. And in Iowa, the Iowa Finance Authority’s FirstHome and Homes for Iowans programs offer a grant or a deferred second loan toward down payment and closing costs for eligible buyers.
Is this you?
- First-time buyers (and some repeat buyers in targeted areas)
- Households within Minnesota Housing, WHEDA or Iowa Finance Authority income limits
- Buyers who qualify on income but are short on savings
- Anyone told “come back when you’ve saved more”
Ashland · Branch Sales Manager & Loan OfficerQuestions friends actually ask
How does down payment assistance work in Minnesota, Wisconsin and Iowa?
Minnesota Housing offers assistance as a second loan alongside your mortgage — some versions defer repayment until you sell or refinance, others carry a small monthly payment. In Wisconsin, WHEDA pairs its own assistance second loans with a WHEDA first mortgage. In Iowa, the Iowa Finance Authority offers a grant or a deferred second loan — no monthly payment, repaid when you sell, refinance or pay off the first mortgage. Ashland handles the pairing for you in all three states.
Do I have to be a first-time buyer to get assistance?
Minnesota Housing’s Start Up program is for first-time buyers (defined as not owning in the last three years), but other programs serve repeat buyers too, WHEDA has first-time and repeat-buyer options on the Wisconsin side, and Iowa’s FirstHome program is for first-time buyers while Homes for Iowans serves repeat buyers too. Income and purchase price limits apply and vary by county.
Is down payment assistance a grant or a loan?
It’s typically a loan — but often a deferred one with no monthly payment, repaid only when you sell, refinance, or pay off the first mortgage. Iowa’s FirstHome program also offers a smaller outright grant option. Ashland will walk you through exactly what your version costs, in plain English, before you commit.
Is there down payment assistance for first-time home buyers in Iowa?
Yes. The Iowa Finance Authority’s FirstHome program (first-time buyers, certain military buyers, and buyers in targeted areas) and Homes for Iowans (first-time and repeat buyers) both offer down payment and closing cost help — a grant or a deferred second loan — alongside an IFA first mortgage. Income and purchase-price limits apply and change periodically; Ashland checks your eligibility and runs the numbers before you commit.
Keep exploring
Conventional Loans
The workhorse of home financing — flexible terms, competitive costs, and down payments as low as 3% for first-time buyers.
Learn more →FHA Loans
The first-time buyer favorite — 3.5% down, friendlier credit requirements, and forgiving guidelines for real-life finances.
Learn more →VA Loans
For those who served — $0 down, no monthly mortgage insurance, and some of the strongest terms in all of lending.
Learn more →Not sure yet?
That is literally what Ashland is for. One conversation, all your options side by side, zero pressure to move forward.
Applications happen on Fairway's secure site — never here.