Median Sale Price
$253,549
Iowa statewide median — well below the national $417,700 median
+2.4% YoYIowa · FHA LoansFHA Loans in Iowa:
FHA Loans in Iowa:
Requirements, Limits & Assistance Programs
3.5%Min. down payment
580Min. credit score
$541,287FHA loan limit — every Iowa county
43%Max debt-to-income ratio
The short version
FHA in Iowa at a Glance
FHA loans are government-backed mortgages that let Iowa buyers put as little as 3.5% down with a credit score of 580 or higher.
3.5%
Min. down payment (580+ score)
10%
Down payment if score 500–579
1.75%
Upfront mortgage insurance premium (MIP)
FHA loans are insured by the Federal Housing Administration and originated by FHA-approved lenders like Intra-Mortgage. Iowa is one of the most affordable states in the country, so FHA is especially powerful here: with a statewide median around $254,000 — far below the FHA loan limit — the limit is almost never the constraint. Your credit, down payment, and debt-to-income ratio are what decide the deal.
Iowa-specific note: Every Iowa county uses the 2026 FHA one-unit limit of $541,287 — Iowa has no high-cost counties, so the same figure applies statewide, from Polk (Des Moines) to Linn (Cedar Rapids) to Scott (Davenport). With a statewide median near $254,000, most buyers have wide headroom under the limit, and much of rural Iowa also qualifies for 0%-down USDA financing.
Iowa housing market
Market Snapshot
Iowa is among the most affordable markets in the country — a strong backdrop for FHA buyers stretching a down payment.
Days on Market
38 days
Statewide average — steady, buyer-accessible pace
StableHomes Sold
3,383
Statewide, May 2026 — a smaller but stable market
StableFHA Share (National)
17%
Of U.S. purchase loans are FHA — the flexible-credit path many IA buyers use
National avgIowa's low prices mean many buyers can qualify for an FHA loan with a down payment under $10,000. The Des Moines metro — especially fast-growing suburbs like Ankeny and West Des Moines — is the most competitive part of the state, while rural Iowa opens the door to 0%-down USDA financing alongside FHA.
Down payment help
Iowa First-Time Buyer Programs
These Iowa Finance Authority (IFA) programs and other assistance can be layered on top of an FHA loan to reduce your out-of-pocket costs at closing.
IFA FirstHome / Homes for Iowans 2nd Loan
Iowa Finance Authority
- Benefit
- Up to 5% of the sale price or appraised value, whichever is lower, with no dollar cap
- Structure
- Second loan with no monthly payment. Repayable at sale, refinance, or when the first mortgage is paid in full. Subordination is not permitted. Cannot be combined with the FirstHome $2,500 grant in the same transaction. Must be paired with an IFA FirstHome or Homes for Iowans first mortgage.
Source: Iowa Finance Authority · Verified Sep 8, 2026
IFA FirstHome Grant
Iowa Finance Authority
- Benefit
- $2,500
- Structure
- Non-repayable grant toward down payment or closing costs. FirstHome buyers choose the grant or the 2nd loan, not both. Cannot be combined with Homes for Iowans DPA options.
Source: Iowa Finance Authority · Verified Sep 8, 2026
IFA Military Homeownership Assistance
Iowa Finance Authority
- Benefit
- $5,000 grant
- Structure
- Grant for eligible service members and veterans. May be layered with FirstHome or Homes for Iowans down payment options.
Source: Iowa Finance Authority · Verified Sep 8, 2026
Stack these programs. IFA assistance is designed to sit on top of an IFA FirstHome or Homes for Iowans first mortgage from a participating lender. FirstHome buyers choose a $2,500 grant or a second loan of up to 5% of the sale price or appraised value — not both. Against Iowa's low prices, even a few thousand dollars covers a meaningful share of the 3.5% FHA down payment. Much of rural Iowa also qualifies for 0%-down USDA — worth comparing against FHA before you decide.
Real scenarios
Iowa FHA Borrower Profiles
Common buyer combinations we see in Iowa — and how FHA works for each.
Profile A
First-time buyer, Des Moines
Buying a $245,000 home in the Des Moines metro. W-2 income at $56,000/year, credit 654, minimal debt. May qualify for IFA assistance layered on an IFA first mortgage. Comfortably under the FHA limit; total cash needed at closing is modest.
3.5% downIFA eligible~35 day close
Profile B
Rural buyer weighing USDA vs FHA
Buying a $210,000 home in a small town outside Cedar Rapids. The property is USDA-eligible, so 0% down is on the table — but FHA at 3.5% may fit better depending on income limits and mortgage insurance. We model both side by side before recommending one.
USDA-eligible areaCompare USDA vs FHA35–45 day close
Profile C
Self-employed buyer, Iowa City
2-year self-employed history, Schedule C income averaging $68,000/year after write-downs, credit 661. FHA accepts a 2-year average. Needs 2 years of complete tax returns, a year-to-date P&L, and business bank statements. Down payment: 3.5% (~$8,050 on a $230K home).
2-yr tax returns needed+7–10 day underwriting40–52 day close
Profile D
Credit-rebuilding buyer, Davenport
Credit score 585 after a resolved collection. FHA allows 580 with 3.5% down, so this buyer qualifies — though likely not yet for IFA assistance if it requires a higher score. Buying a $175,000 home; down payment 3.5% ($6,125). A short stretch of credit work could open more doors next time.
Score 580–619 tierCheck IFA score minimums36–45 day close
Run the numbers
Iowa FHA Payment Estimator
Estimate your monthly payment including MIP — the piece most calculators leave out.
Iowa median: $253,549 · FHA limit: $541,287
Rates vary by credit score and lender
Monthly P&I
$1,615
Principal & interest
Monthly MIP
$112
Mortgage insurance premium (MIP)
Total Monthly
Talk to a loan officer$1,727
Before tax & insurance
Estimates only. Does not include property tax, homeowner's insurance, or HOA dues. MIP rate assumes LTV > 90% for loans ≥ 30 years. Not a commitment to lend.
Answers to real questions
Iowa FHA Loan FAQs
From the field
Our Take on FHA in Iowa
"Iowa is one of the easiest states to buy in with FHA — prices are low enough that the loan limit is a non-issue, so it comes down to credit and debt-to-income. The one call worth making early is USDA versus FHA, because so much of the state is USDA-eligible and 0% down can beat 3.5%. We run both so buyers actually see the difference."
Intra-Mortgage Content Team
Mortgage Education & ContentOur team helps Iowa buyers weigh USDA against FHA early and layer IFA assistance where it fits, so the path with the lowest cash-to-close is clear before they shop.
What to watch for on Iowa FHA files:
- USDA-eligible properties where 0% down may beat FHA — worth modeling both
- IFA program score and income minimums for layering assistance
- Property-condition flags on older river-town and rural homes
Sources & references
Where these figures come from
- 2026 FHA loan limits by county (every Iowa county at the $541,287 floor; no high-cost counties)U.S. Dept. of HUD
- 2026 conforming loan limit baseline ($832,750), which sets the FHA floorFederal Housing Finance Agency
- Iowa Finance Authority FirstHome and Homes for Iowans assistance termsIowa Finance Authority
- IFA FirstHome / Homes for Iowans 2nd LoanIowa Finance Authority
IFA-Participating Lender
Access to Iowa's DPA programs
5.0 Google Rating
Verified borrower reviews
NMLS #2620605
Equal Housing Lender
Licensed in Iowa
Mortgage guidance
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Talk to an Iowa FHA specialist
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