Mortgage in Iowa
Iowa is a beautiful state. With plenty of farmland, ample housing to raise a family, and some fun outdoor attractions, Iowa has seen steady population growth in recent years. Iowa is also one of the more affordable states. With an average home value of about $155,000 , buying a home is much more straightforward in Iowa than in the coastal states. Use our Iowa mortgage calculator to see how much you'll pay for housing.
Iowa Mortgage Calculator: How Much Home Can You Afford?
The Hawkeye State has plenty of affordable homes. If you're moving to Iowa, there are three primary mortgage types from which you can choose.
- Iowa conventional mortgage: Given that the housing costs of Iowa are lower than in other states, many people buy properties that have a low enough dollar value to be a conforming, non-jumbo loan. These loans require as little as 3% down, a 620 credit score, and a debt-to-income ratio of 50% or lower.
- Iowa FHA mortgage: Many Iowans find an FHA mortgage to be perfect for them. It requires as little as 3.5% down as long as you have a 580 credit score. If you have a score between 500 and 579, you'll need 10% down. You must pay private mortgage insurance for the life of the loan.
- Iowa VA mortgage: Through the VA, veterans can access a fantastic mortgage program. This program offers loans with as little as 0% down and no mortgage insurance. The only catch is that you'll likely need a credit score of 660 or above for approval.
In addition to these mortgages, Iowa also has programs to help first-time homebuyers with their down payment.
First-Time Homebuyers in Iowa
The Iowa Finance Authority offers three programs to help Iowans with the cost of housing.
The FirstHome program provides one of two choices. Homebuyers can take a $2,500 grant to assist with closing costs and down payment. Or, buyers can get a second loan, which offers 5% of the sales price up to a maximum of $5,000. It's a deferred loan, so it only comes due on sale, refinance, or when the homeowner fully pays the first mortgage.
Eligibility Criteria: Income and purchase price limits apply. The home must be the borrower's primary residence. A credit score of 640 or above is necessary.
The Homes for Iowans program provides homebuyers with two choices: a $2,500 grant or a second loan of 5% of the purchase price up to a maximum of $5,000. Note you cannot combine Homes for Iowans and FirstHome grants and loans.
Eligibility Criteria: Income and purchase price limits apply to this program. The home must be the borrower's primary residence, and the borrower must have a credit score of at least 640.
Military Homeownership Assistance Program
The Military Homeownership Assistance Program provides an additional $5,000 grant to eligible service members and veterans for down payments and closing costs. Borrowers can use this program in conjunction with one of the two above.
Eligibility Criteria: The same criteria applies to this as the other two programs. You must also be a service member or veteran!
Iowa Mortgage Calculator: Homeownership Is Possible!
If you're looking to move to Iowa, you'll likely find housing to be pleasantly affordable. And, thanks to some generous programs offered by the state, coming up with a down payment might be easier than you think! Check out the programs and mortgage types to see what might work using our Iowa mortgage calculator.
