What to know about buying a house in Iowa
As an Iowa first–time home buyer, you’ll find things less challenging than in most other states. Home prices are low and are rising more slowly than elsewhere.
You may also be in line for home buying help. The Hawkeye state has special mortgages with low rates and worthwhile down payment assistance programs that can make your purchase more affordable.
Here’s what you should know to get started.
Verify your home buying eligibility in Iowa. Start here (Feb 11th, 2022)
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Iowa home buyer overview
In December 2021, the Iowa Association of Realtors reported: “Median Sales Price increased 5.6 percent to $190,000 for Single–Family Detached homes and 10.6 percent to $201,000 for Townhouse–Condo homes.” For our calculations, we’ll split the difference and say the average home price was $195,500 that month.
The good news for every Iowa first–time home buyer is that median price is way lower than the national average, which was $375,000 the same month.
And at 5.6% year–over–year, home prices in Iowa are rising much more slowly than they are nationwide. Across the country, home values climbed 17.4% from October 2020 to October 2021.
| Iowa Home Buyer Overview | |
| Average Home Sale Price in Iowa | $195,500 |
| Minimum Down Payment in Iowa (3%) | $5,865 |
| 20% Down Payment in Iowa | $39,100 |
| Average Credit Score in Iowa1 | 726 |
| Maximum Iowa Home Buyer Grant2 | Up to $14,999 as a forgivable loan in Cedar Rapids |
Down payment amounts are based on the state’s most recently available average home sale price. “Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620.
If you’re eligible for a VA loan (backed by the Department of Veterans Affairs) or a USDA loan (backed by the US Department of Agriculture), you may not need any down payment at all.
Verify your home buying eligibility in Iowa. Start here (Feb 11th, 2022)
First–time home buyer loans in Iowa
If you’re a first–time home buyer in Iowa with a 20% down payment, you can get a conventional loan with a low interest rate. And you never have to pay for private mortgage insurance (PMI).
Of course, few first–time buyers have saved enough for 20 percent down. But the good news is, you don’t need …….
Source: https://themortgagereports.com/88536/iowa-first-time-home-buyer-programs-grants