Current mortgage rates · week of July 2, 2026
| Week | 30-yr / 15-yr fixed |
| July 2, 2026 | 6.43% / 5.79% |
| June 25, 2026 | 6.49% / 5.84% |
| June 18, 2026 | 6.47% / 5.81% |
| June 11, 2026 | 6.52% / 5.84% |
| June 4, 2026 | 6.48% / 5.79% |
| May 28, 2026 | 6.53% / 5.87% |
| May 21, 2026 | 6.51% / 5.85% |
| May 14, 2026 | 6.36% / 5.71% |
U.S. weekly averages — Freddie Mac Primary Mortgage Market Survey via FRED.
Iowa Mortgage Overview
Iowa is a beautiful state with little traffic and low crime rates, something completely opposite of many states with larger cities. Iowa is a beautiful state that's perfect for people of all ages, likes, and dislikes.
The average home price in Iowa is $250,000 and over 70 percent of the homes in Iowa are owner-occupied. Whether you want to live the city life or out in the open where it's quieter, there is something for everyone in Iowa.
Here are the top mortgage programs available for Iowa residents.
Iowa FHA loans
If you are just starting in life, you may not have great credit. You may not even have any credit. FHA loans are a great option for this situation. You need just a 580 credit score and a 3.5 percent down payment. FHA lenders have flexible guidelines and low costs. You'll pay mortgage insurance for the loan's term for the flexibility, but for first-time buyers, it's a great opportunity.
Iowa VA loans
Veterans of the military enjoy VA loans because they offer 100 percent financing and low closing costs. Veterans need just a 620 credit score and average debt ratios. If you can prove you can cover the loan, your current debts, and the daily cost of living, you're on your way to a VA loan and owning your first home.
Iowa USDA loans
Iowa is a great place to live the rural life and USDA loans make it easy to buy a home there. With 100 percent financing, low to moderate-income families can have a great opportunity for a loan if they have at least a 640 credit score.
Iowa conventional loans
If you have great credit and a low amount of debt, the Iowa conventional loan is a great option. You need just 3 percent down, decent credit, and low debt ratios. If you put less than 20 percent down, you'll pay PMI, but you can cancel it once you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Iowa
FirstHome
The Iowa Finance Authority offers two down payment assistance options - a $2,500 grant you don't have to repay or a second mortgage worth up to 5 percent of the sales price or $5,000 whichever is less. The second mortgage is repayable when you refinance the loan or sell the home. For either option, you need a 640 credit score, max 45 percent debt ratio, and proof you'll occupy the property as your primary residence.
Military Home Ownership Assistance Program
This is a $5,000 grant to veterans to help with down payment and/or closing costs.
Iowa mortgage FAQ
- What kinds of home loans can you get in Iowa?
- Iowa offers FHA loans with just a 580 credit score and 3.5 percent down, VA loans with 100 percent financing and low closing costs for veterans with a 620 score, USDA loans with 100 percent financing for low to moderate income families with a 640 score, and conventional loans with 3 percent down where PMI can be canceled once you owe under 80 percent of the home value.
- What assistance does Iowa give first-time homebuyers?
- The Iowa Finance Authority FirstHome program offers two down payment options, a grant you never repay or a second mortgage worth up to 5 percent of the sales price that is repaid when you sell or refinance. You need a 640 credit score, a debt ratio of 45 percent or less, and must live in the home. Veterans can also get the Military Home Ownership Assistance Program grant.
- What credit score do Iowa lenders look for?
- FHA loans set the lowest bar at a 580 credit score with 3.5 percent down, making them popular with buyers who are just starting out. VA loans require a 620 score, while USDA loans and the FirstHome assistance program both look for at least 640. Conventional loans need decent credit and low debt ratios to secure the best terms.