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Iowa FHA Home Loan

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2019 Iowa FHA Loan Requirements

Iowa FHA Loans | Requirements | Limits | Apply

Our goal is to provide you with all of the information and tools you need in order to determine if a FHA loan is right for you. On this page, you can view the 2019 Iowa FHA loan guidelines, view loan limits by county, and calculate your monthly payment.  These guidelines include the FHA requirements related to credit history, income, employment, and the type of property you want to purchase.  After reading the loan requirements and loan limits, you can use our detailed FHA calculator, which will allow you to see what your monthly payment, mortgage insurance, and monthly escrow will be.

One of the most common questions people ask is regarding where in Iowa FHA loans are available. They are available throughout every county of the state, both urban and rural.  You can view the max lending limits for your county below on this page.  FHA mortgages are especially popular in cities and larger towns, such as: Ames, Ankeny, Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Iowa City, Sioux City, and Waterloo. You can finance a home purchase with a FHA loan in any part of Iowa though, including rural areas.

Iowa FHA Loan Requirements

Keep in mind that each application is looked at individually, and FHA loans have a considerable amount of leniency in what is required for an approval. There are some concrete loan requirements set out by the FHA though, which dictates what loans they will insure. The following information is written in the context of buying a home with a FHA loan. If you already have a FHA loan, or if you wish to refinance into a FHA loan, please click here to learn about FHA refinancing.

The mandatory Iowa FHA loan requirements for a home purchase are as follows:

  • Down Payment – FHA loans require that you put at least 3.5% down.  If you are eligible for down payment assistance, you may receive up to 3% that can be used for your down payment.  The funds used for your down payment may also be borrowed or gifted.
  • Credit Score – To qualify for a 3.5% down payment, you must have a 580 credit score or higher. If your credit score is between a 500-579, you still may qualify for an FHA loan, but will be required to put 10% down.
  • Job History – Proof of employment for 2 years is required. It is acceptable if you have changed jobs, but you need to show consistency of income.
  • Income Documentation – You must provide 2 years worth of tax returns, as well as your 2 most recent bank statements.
  • Primary Residence – You must occupy the home that you intend to purchase and have it be your primary residence. The FHA does not insure investment properties. Multifamily homes are allowed, which can have up to 4 units, but you must occupy at least one of them for it to be eligible for a FHA home loan in Iowa.
  • DTI Ratio – Your monthly debts, including your new mortgage payment, must not exceed 43% of your bring home income.  What you want to do is calculate all of your current monthly debts (do not include anything that does not show on your credit report – only those that appear on a credit report are counted).  Then, take the total of your current debts, plus what your expected new mortgage payment, and get a total.  Let’s say your current monthly debts are $750 and your new mortgage payment will be $1,000/month.  Your total monthly debts would be $1,750.  Compare this amount to your monthly income to calculate your DTI ratio.  Your monthly debts compared to your monthly income shall not exceed 43% for you to qualify for a FHA loan.

You can calculate your new FHA payment below. Not sure what your FHA interest rate will be?  We can provide you with a free consultation and rate quote.

FHA Mortgage Calculator

%

Total Monthly Payment

$0

FHA base loan amount$0
FHA upfront MIP 1.75%$0
FHA total loan amount$0
Principal & interest$0
FHA MIP 0%$0
Monthly escrow$0
Down payment0%

  • Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
  • Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule.  This is the most common loan repayment schedule selected for FHA loans.  You can change it to 20 years, 15 years, or 10 years if you want a shorter loan amortization.
  • Interest Rate – The interest rate a borrower receives depends on their credit, income, and other qualifying factors.  To get an actual rate quote, you will need to speak with a licensed loan officer.  You can call 1-800-731-3560 to speak with a loan specialist and receive a rate quote.
  • Down Payment – FHA loans require a 3.5% down payment.  If you would like to put more down, add in more into the down payment field.  Please note that not everyone will qualify for a 3.5% down payment, and of course, not all applicants are approved for a loan at all.  The 3.5% is the amount that many FHA loan applicants will be allowed as a minimum down payment.
  • Property Taxes – Add the annual taxes for the home you want to buy.  To find out how much the annual property taxes are, check with the county assessor.  You can also ask a real estate agent to help you find out what the exact annual property taxes are for a home you are interested in.
  • Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.
  • Down Payment – This is the percentage that is calculated based upon the home purchase price and the down payment amount.

After submitting information into these fields, it will calculate how much the FHA mortgage payment will be based upon what is entered.  The next set of data presented on the right side and shows under the total monthly payment is as follows:

  • FHA Base Loan Amount -This is the amount of your loan after subtracting your down payment from the total, but prior to adding in the FHA upfront mortgage insurance premium (UPMIP).
  • FHA Upfront MIP – All FHA loans require a 1.75% upfront mortgage insurance premium to be paid. This is calculated from the base loan amount. This 1.75% is the same for any borrower and on any type of FHA loan. It does not vary from one FHA lender to another.
  • FHA Total Loan Amount – This is the combined total of your FHA base loan amount (after subtracting the down payment), along with the FHA UPMIP. You have the option to pay the FHA UPMIP amount out of pocket, or you can wrap it into the loan amount.  Most decide to include it in the loan amount, so we have it automatically added on the calculator.
  • Principle and Interest – This is the amount of your mortgage payment before adding mortgage insurance, and property taxes, and property insurance.
  • FHA MIP – This is the monthly mortgage insurance premiums required on all FHA loans.   The amount depends on the type of loan, how many years the repayment schedule is (such as 15 years or 30 years), and the loan-to-value (LTV) ratio.  A 15 year loan with a LTV less than 90%, the monthly MIP will be 0.45%.  A 15 year loan with a LTV greater than 90%, the monthly MIP will be 0.70%.  For a 30 year loan with a LTV less than 95% the monthly MIP is 0.80%.  For a 30 year loan with a LTV greater than 95%, the monthly MIP is 0.85%.
  • Monthly Escrow – This is how much your property taxes and property insurance is after taking the annual amounts and dividing them by 12 monthly payments.

Would you like to receive more information or apply for a FHA loan?

2019 Iowa FHA Loan Limits

The FHA loan limits were increased in 2019 for every county in Iowa.  You may view the maximum loan amount allowed based on the number of units and your county.

 

County Single Family 2 Family 3 Family 4 Family
 ADAIR $314,827 $403,125 $487,250 $605,525
 ADAMS $314,827 $403,125 $487,250 $605,525
 ALLAMAKEE $314,827 $403,125 $487,250 $605,525
 APPANOOSE $314,827 $403,125 $487,250 $605,525
 ADUBON $314,827 $403,125 $487,250 $605,525
 BENTON $314,827 $403,125 $487,250 $605,525
 BLACK HAWK $314,827 $403,125 $487,250 $605,525
 BOONE $314,827 $403,125 $487,250 $605,525
 BREMER $314,827 $403,125 $487,250 $605,525
 BUCHANAN $314,827 $403,125 $487,250 $605,525
 BUENA VISTA $314,827 $403,125 $487,250 $605,525
 BUTLER $314,827 $403,125 $487,250 $605,525
 CALHOUN $314,827 $403,125 $487,250 $605,525
 CARROLL $314,827 $403,125 $487,250 $605,525
 CASS $314,827 $403,125 $487,250 $605,525
 CEDAR $314,827 $403,125 $487,250 $605,525
 CERRO GORDO $314,827 $403,125 $487,250 $605,525
 CHEROKEE $314,827 $403,125 $487,250 $605,525
 CHICKASAW $314,827 $403,125 $487,250 $605,525
 CLARKE $314,827 $403,125 $487,250 $605,525
 CLAY $314,827 $403,125 $487,250 $605,525
 CLAYTON $314,827 $403,125 $487,250 $605,525
 CLINTON $314,827 $403,125 $487,250 $605,525
 CRAWFORD $314,827 $403,125 $487,250 $605,525
 DALLAS $314,827 $403,125 $487,250 $605,525
 DAVIS $314,827 $403,125 $487,250 $605,525
 DECATUR $314,827 $403,125 $487,250 $605,525
 DELAWARE $314,827 $403,125 $487,250 $605,525
 DES MOINES $314,827 $403,125 $487,250 $605,525
 DICKINSON $314,827 $403,125 $487,250 $605,525
 DUBUQUE $314,827 $403,125 $487,250 $605,525
 EMMET $314,827 $403,125 $487,250 $605,525
 FAYETTE $314,827 $403,125 $487,250 $605,525
 FLOYD $314,827 $403,125 $487,250 $605,525
 FRANKLIN $314,827 $403,125 $487,250 $605,525
 FREMONT $314,827 $403,125 $487,250 $605,525
 GREENE $314,827 $403,125 $487,250 $605,525
 GRUNDY $314,827 $403,125 $487,250 $605,525
 GUTHRIE $314,827 $403,125 $487,250 $605,525
 HAMILTON $314,827 $403,125 $487,250 $605,525
 HANCOCK $314,827 $403,125 $487,250 $605,525
 HARDIN $314,827 $403,125 $487,250 $605,525
 HARRISON $314,827 $403,125 $487,250 $605,525
 HENRY $314,827 $403,125 $487,250 $605,525
 HOWARD $314,827 $403,125 $487,250 $605,525
 HUMBOLDT $314,827 $403,125 $487,250 $605,525
 IDA $314,827 $403,125 $487,250 $605,525
 IOWA $314,827 $403,125 $487,250 $605,525
 JACKSON $314,827 $403,125 $487,250 $605,525
 JASPER $314,827 $403,125 $487,250 $605,525
 JEFFERSON $314,827 $403,125 $487,250 $605,525
 JOHNSON $314,827 $403,125 $487,250 $605,525
 JONES $314,827 $403,125 $487,250 $605,525
 KEOKUK $314,827 $403,125 $487,250 $605,525
 KOSSUTH $314,827 $403,125 $487,250 $605,525
 LEE $314,827 $403,125 $487,250 $605,525
 LINN $314,827 $403,125 $487,250 $605,525
 LOUISA $314,827 $403,125 $487,250 $605,525
 LUCAS $314,827 $403,125 $487,250 $605,525
 LYON $314,827 $403,125 $487,250 $605,525
 MADISON $314,827 $403,125 $487,250 $605,525
 MAHASKA $314,827 $403,125 $487,250 $605,525
 MARION $314,827 $403,125 $487,250 $605,525
 MARSHALL $314,827 $403,125 $487,250 $605,525
 MILLS $314,827 $403,125 $487,250 $605,525
 MITCHELL $314,827 $403,125 $487,250 $605,525
 MONONA $314,827 $403,125 $487,250 $605,525
 MONROE $314,827 $403,125 $487,250 $605,525
 MONTGOMERY $314,827 $403,125 $487,250 $605,525
 MUSCATINE $314,827 $403,125 $487,250 $605,525
 O’BRIEN $314,827 $403,125 $487,250 $605,525
 OSCEOLA $314,827 $403,125 $487,250 $605,525
 PAGE $314,827 $403,125 $487,250 $605,525
 PALO ALTO $314,827 $403,125 $487,250 $605,525
 PLYMOUTH $314,827 $403,125 $487,250 $605,525
 POCAHONTAS $314,827 $403,125 $487,250 $605,525
 POLK $314,827 $403,125 $487,250 $605,525
 POTTAWATTAMIE $314,827 $403,125 $487,250 $605,525
 POWESHIEK $314,827 $403,125 $487,250 $605,525
 RINGGOLD $314,827 $403,125 $487,250 $605,525
 SAC $314,827 $403,125 $487,250 $605,525
 SCOTT $314,827 $403,125 $487,250 $605,525
 SHELBY $314,827 $403,125 $487,250 $605,525
 SIOUX $314,827 $403,125 $487,250 $605,525
 STORY $314,827 $403,125 $487,250 $605,525
 TAMA $314,827 $403,125 $487,250 $605,525
 TAYLOR $314,827 $403,125 $487,250 $605,525
 UNION $314,827 $403,125 $487,250 $605,525
 VAN BUREN $314,827 $403,125 $487,250 $605,525
 WAPELLO $314,827 $403,125 $487,250 $605,525
 WARREN $314,827 $403,125 $487,250 $605,525
 WASHINGTON $314,827 $403,125 $487,250 $605,525
 WAYNE $314,827 $403,125 $487,250 $605,525
 WEBSTER $314,827 $403,125 $487,250 $605,525
 WINNGEBAGO $314,827 $403,125 $487,250 $605,525
 WINNESHIEK $314,827 $403,125 $487,250 $605,525
 WOODBURY $314,827 $403,125 $487,250 $605,525
 WORTH $314,827 $403,125 $487,250 $605,525
 WRIGHT $314,827 $403,125 $487,250 $605,525

 

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