If you’ve been doom-scrolling housing content and waiting for a sign, this might be it.

Mortgage interest rates are projected to drop, which means first-time homebuyers, especially Gen Z and Millennials, may finally catch a break. And if you’re buying in Iowa? You’re already ahead of the game.

Iowa consistently ranks as one of the best states for young homebuyers, including buyers under 25. What does this mean for you? Homeownership here is actually attainable. That being said, lower interest rates usually bring more buyers into the market, which can mean more competition and fewer affordable homes. The key? Having a plan before you start scrolling through Zillow listings at 2 a.m.

Why Buy a Home Young? (Even if You’re Not ‘Rich’ Yet)

Let’s be real – most first-time homebuyers aren’t swimming in extra cash. And that’s okay.

Buying your first home isn’t about finding your dream house with the perfect backsplash. It’s about getting your foot in the door and building wealth over time. A starter home helps you:

  • Build equity instead of paying rent forever
  • Lock in housing costs instead of dealing with yearly rent hikes
  • Grow your net worth as your home’s value increases

You can upgrade later. Everyone starts somewhere.

First-Time Homebuyer Perks You Should Know About

Good news: you don’t need 20% down or millionaire parents to buy a home. There are legit programs designed to help first-time homebuyers get started.

Popular financing options include:

  • First Time Homebuyer Grants – Based on income and offered on a first-come/first serve basis, these grants can be used for downpayment and closing costs.
  • Fannie Mae Loans: Backed by the government and designed to keep housing affordable, some of these options require as little as 3% down.
  • Rural Development Loans: Buying in rural Iowa? You may qualify for 100% financing. That means no down payment.
  • VA Loans: If you’re a U.S. veteran, you may be eligible for 100% financing through a VA-backed loan.

Pro tip: A mortgage lender can help you figure out which options actually fit your situation.

How to Set Yourself Up for Success as a First-Time Homebuyer

Homebuying can feel overwhelming, but it’s way easier when you break it into steps.

Do This:

  • Make a realistic budget: Know what you can afford based on your income, debts, and credit score, not just what a calculator says you might qualify for.
  • Talk to a mortgage lender early: They’re not just there to crunch numbers. A lender helps you understand your options and avoid expensive mistakes.
  • Get pre-qualified: This is when a lender will evaluate your financial situation based on information you provide them related to your income, debts, and credit history. This gives you a clearer idea of your price range and shows sellers you’re serious.

What Not to Do While Buying a Home

Some moves can seriously slow down, or completely derail, your mortgage approval.

Avoid These:

  • Taking on new debt: Yes, that couch looks amazing. No, now is not the time. This includes car loans, credit cards, or ‘buy now, pay later’ purchases.
  • Changing jobs: Try to avoid switching jobs or income structures during the mortgage process if possible.
  • Making random large deposits: Gift money is allowed, but depositing it without talking to your lender first can cause delays and extra paperwork.

How Availa Bank Has Your Back

Buying your first home can feel like learning a new language. That’s where we come in.

At Availa Bank, our local mortgage lenders guide you every step of the way. No call centers, no getting ghosted, and no confusing jargon.

Our mortgage team can help you:

  • Get pre-approved
  • Compare loan options
  • Navigate the application process
  • Service your loan after closing
  • Support you if questions or issues pop up.

We believe real people deserve real support, especially when making one of the biggest purchases of their lives.

Ready to get started? Give us a call or stop by an Availa Bank branch today. Your homeownership era might be closer than you think.