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Last updated: Jun 20, 2024
  • Minimum 620 credit score needed to prequalify
  • 0% down USDA loan for rural homebuyers
  • 97% of borrowers would recommend to friends or family
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  • 2024 FHA Loan tools and resources
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  • Easy to qualify, no obligation
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Data provided by Icanbuy, LLC. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.

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 $147,000 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


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.

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