With builders offering incentives on most new homes and resale sellers more open to concessions, agents have more tools than ever to get buyers to the closing table. The trick is putting them together in a way the loan program allows.

Know the three money sources

  • Builder incentives: rate buydowns, closing cost credits, upgrades or price cuts.
  • Seller concessions: on resale homes, the seller pays part of the buyer's closing costs or a buydown.
  • Down payment assistance: Iowa Finance Authority grants, Key Mortgage Group's internal first-time buyer grant, or other programs.

The rules that matter

Interested-party contribution limits

Conventional, FHA, VA and USDA loans each cap how much the seller or builder can contribute, typically as a percentage of the price or value. Contributions over the cap can't be used. If the buyer only needs $6,000, asking for $12,000 doesn't help and can complicate things.

Preferred lender requirements

Many builder incentives are tied to the builder's preferred lender. That might be the best deal, or it might not once rate and fees are compared. Find out before the buyer signs a purchase agreement.

Grants usually don't stack

Iowa grant programs generally can't be combined with each other. Choosing the right one depends on income, price and loan type. Here's the 2026 program rundown.

Funds have to be used correctly

Concessions usually go toward closing costs, prepaids and buydowns, not the down payment itself. Grant funds often can go toward the down payment.

A simple workflow

  1. Get the buyer fully pre-approved with DPA eligibility already checked.
  2. Before writing, call the lender with the price and any expected concession or incentive.
  3. The lender confirms the maximum usable contribution and shows the buyer's cash to close and payment.
  4. Write the offer with the right number.

I'm happy to run these scenarios for any agent, any time, including on listings where you want to show buyers what a concession or buydown would do to their payment. Reach out and let's build a playbook for your buyers.