FHA Loans in Iowa
The FHA loan limit in Iowa is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
The FHA baseline loan limit easily covers Iowa's housing market, where median home prices fall well below the limit statewide. FHA loans are a practical choice throughout Iowa, particularly in Des Moines suburbs and college towns like Iowa City and Ames where younger buyers are entering the market. Iowa's well-maintained housing stock and moderate climate (no major natural disaster risks beyond occasional flooding) mean FHA appraisals generally proceed smoothly.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,690
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $484 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,690 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Iowa's average rate of 1.23%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Iowa
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Iowa) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
