FHA Loan Calculator for Iowa

FHA Loans in Iowa

FHA loans require a minimum 3.5% down payment (10% if credit score is 580-619). On Iowa's median home of $210,000, that's a minimum down payment of $7,400.

FHA Loan Limits in Iowa

FHA loan limits vary by county and are tied to conforming limits. In most Iowa counties, the FHA floor limit is $498,257 (2024). High-cost areas like certain counties may qualify for higher limits up to $1,149,825. All Iowa counties are at the standard conforming limit.

FHA vs Conventional in Iowa

FHA MIP (Mortgage Insurance Premium) is required regardless of down payment. Conventional loans eliminate PMI at 20% equity. With Iowa's median home at $210,000, buyers who can put down $42,000 (20%) are better served by conventional financing. FHA makes sense for buyers with limited savings or credit scores below 740.

Closing Costs

Iowa closing costs average $2,600. Iowa charges a transfer tax of $1.60/$1,000 of value, which is modest. Overall closing costs are below national averages. Sellers can contribute up to 6% of the purchase price toward FHA buyer closing costs.

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