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