Ames FHA Loan Rates, Closing Costs & Stats

AMES, IA

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Ames's 51 lenders originated 177 FHA loans during 2023. The total origination value was $34,385,000, with an average FHA loan value of $194,266.

    Ames FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Ames averaged 6.52% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Ames's average FHA mortgage closing costs are $6,231.

    The average rate for the prior week (2024-11-01) was 6.1% and one month ago for the week of 2024-10-04, the average rate was 5.72%.

    The average rate one year ago was 7.36%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.53%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Ames FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Ames level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    GUILD MORTGAGE COMPANY 31 6.94% $7,882
    LAND HOME FINANCIAL SERVICES, INC. 11 6.43% $7,827
    QUICKEN LOANS, LLC 10 6.63% $9,730
    AMERICAN PACIFIC MORTGAGE CORPORATION 7 6.98% $9,935
    PENNYMAC LOAN SERVICES, LLC 6 6.06% $9,196
    CARDINAL FINANCIAL 5 6.55% $9,965
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 5 7.33% $8,468
    GREENSTATE CREDIT UNION 5 6.02% $6,279
    NEWREZ LLC 4 6.13% $7,439
    BROKER SOLUTIONS, INC. 4 6.50% $7,391
    Flagstar Bank, FSB 4 6.61% $6,118
    HOMESIDE FINANCIAL, LLC 4 7.00% $6,404
    Barrington Bank & Trust Company, N.A. 4 7.03% $8,293
    UNITED WHOLESALE MORTGAGE, LLC 4 6.24% $8,162
    LOANDEPOT.COM, LLC 3 6.41% $7,337
    ENVOY MORTGAGE, LTD 3 7.29% $9,765
    FRONTIER FINANCIAL, INC. 3 6.63% $5,572
    The Central Trust Bank 3 6.33% $7,900
    Carrington Mortgage Services, LLC 3 6.13% $8,541
    HOMESERVICES LENDING, LLC 3 6.71% $7,698
    Paramount Residential Mortgage Group, Inc. 2 7.19% $5,808
    GUARANTEED RATE, INC. 2 6.19% $11,625
    ENDEAVOR CAPITAL, LLC. 2 6.94% $9,030
    Lincoln Savings Bank 2 6.38% $5,866
    Mortgage Research Center, LLC 2 7.62% $3,870
    IOWA BANKERS MORTGAGE CORPORATION 2 7.63% $6,542
    MID AMERICA MORTGAGE, INC. 2 6.94% $5,243
    POLARIS HOME FUNDING CORP. 2 6.88% $9,223
    Wells Fargo Bank 1 6.38% $7,603
    American Mortgage & Equity Consultants, Inc. 1 6.38% $8,792
    AMERISAVE MORTGAGE CORPORATION 1 6.25% $9,803
    CALCON MUTUAL MORTGAGE LLC 1 6.63% $19,537
    CMG MORTGAGE, INC. 1 7.13% $6,815
    First Interstate Bank 1 5.50% $8,355
    Fortress Bank 1 6.63% $6,601
    FREEDOM MORTGAGE CORPORATION 1 7.25% $20,775
    GERSHMAN INVESTMENT CORP. 1 7.38% $5,157
    GREATER IOWA CREDIT UNION 1 7.13% $2,565
    MOVEMENT MORTGAGE, LLC 1 5.75% $15,091
    NEW DAY FINANCIAL, LLC 1 7.25% $3,220
    Northwest Bank 1 5.75% $10,897
    Plains Commerce Bank 1 7.13% $12,657
    PLAZA HOME MORTGAGE, INC. 1 5.25% $8,962
    RUHL MORTGAGE, LLC 1 5.75% $6,282
    Servion, Inc. 1 7.00% $4,672
    SUN WEST MORTGAGE COMPANY, INC. 1 5.84% $5,020
    The Federal Savings Bank 1 6.13% $15,161
    TOP FLITE FINANCIAL, INC. 1 6.75% $14,613
    Truist 1 6.20% $5,442
    U.S. Bank 1 7.00% $5,288
    AMERICAN FINANCIAL NETWORK, INC. 1 6.75% $16,681

    The top Ames FHA lender as defined by loan originations is GUILD MORTGAGE COMPANY, with 31 FHA loans originated. Their average total fees are $7,882, which is $55 higher than the next largest lender, LAND HOME FINANCIAL SERVICES, INC..

    The lowest fee Ames FHA lenders (with over 10 loans originated) are LAND HOME FINANCIAL SERVICES, INC. ($7,827), GUILD MORTGAGE COMPANY ($7,882), QUICKEN LOANS, LLC ($9,730), .

    The lowest rate Ames FHA lenders (with over 10 loans originated) are LAND HOME FINANCIAL SERVICES, INC. (6.43%), QUICKEN LOANS, LLC (6.63%), GUILD MORTGAGE COMPANY (6.94%), .

    Ames FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    AMES, IA BOONE 2022 $420,680 $538,650 $651,050 $809,150
    AMES, IA STORY 2022 $420,680 $538,650 $651,050 $809,150
    AMES, IA BOONE 2023 $472,030 $604,400 $730,525 $907,900
    AMES, IA STORY 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).