The Iowa Finance Authority has unveiled a new mortgage program for first-time and repeat homebuyers that provides a down payment wrapped in a 0% loan for up to 5% of the sale price or $5,000, whichever is less, and is repayable upon refinance or sale of the home.

The $5,000 second loan program requires no monthly payments and must be used in conjunction with one of IFA’s mortgage programs. Eligible homebuyers may have a household income of up to $121,800 and may purchase a home for up to $331,000. Additional homebuyer assistance programs offered by IFA include a $2,500 nonrepayable down payment assistance grant as well as a mortgage credit certificate, which may provide up to a $2,000 federal tax credit every year for the life of the mortgage.

More details and a list of lenders offering the programs are available at IowaFinanceAuthority.gov.