The Cherries meet Manchester City on Sunday in the quarterfinals.
Iraola told BBC Sport: "The FA Cup is, for me, much more important than playing in Europe. It's a title.
"Sometimes they talk about the cup competitions as a way to get into Europe. I don't care about Europe.
"We are playing in a final, we are fighting for a title. For me, it's much more important."
"I think we can win it," he added. "Probably we are not the favourites, especially with the opposition we have in the quarter-finals but I think we have shown.
"We are three games away from winning it. With a good day from our players, we can beat all the teams. I think we have a chance, probably not as big as City or Aston Villa, but I think we have our chance."
On facing City manager Pep Guardiola, Iraola also said: "Pep Guardiola is the best manager I've known. I have no doubts.
"There is a structure, organisation, multiple options, but at the end of the day, I think what he tries to do is put the player in the best scenario to let him shine.
"With Pep, you have to analyse like, I don't know, nine or 10 different ways they can go.
"The last game we played against them, we prepared for a couple of main structures and straight away, in the third minute, we had to change everything.
"It's very challenging but it's the kind of challenge you are here for."