Ames FHA Loans

AMES, IA

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 52 lenders originated 295 FHA loans during 2021. The total origination value was $52,375,000, with an average FHA loan value of $177,542.

Ames FHA Loans, 30 Year Fixed Rates

30 Year FHA mortgages in Ames averaged 5.3% for the week of 2022-05-13, compared to the national average (all FHA variants) of 5.361% for the same period.

The average rate for the prior week (2022-05-06) was 5.03% and one month ago for the week of 2022-04-08, the average rate was 4.89%.

The average rate one year ago was 3.2%.

For refis of the same type during the week of 2022-05-13, the average rate was 5.18%.

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 and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Ames level.

Name # of Loans 2021 Avg. 30yFix Rate 2021 Avg. Total Fees
QUICKEN LOANS, LLC 37 2.75% $5,206
INLANTA MORTGAGE, INC. 29 3.15% $6,147
GERSHMAN INVESTMENT CORP. 19 3.39% $4,996
FAIRWAY INDEPENDENT MORTGAGE CORPORATION 19 3.15% $5,378
LAND HOME FINANCIAL SERVICES, INC. 14 3.16% $6,803
AMERICAN PACIFIC MORTGAGE CORPORATION 13 2.87% $7,035
CARDINAL FINANCIAL COMPANY, LIMITED PARTNERSHIP 10 3.58% $7,803
FREEDOM MORTGAGE CORPORATION 10 2.91% $4,707
PENNYMAC LOAN SERVICES, LLC 9 3.04% $4,451
GUILD MORTGAGE COMPANY 8 3.00% $5,910
LAKEVIEW LOAN SERVICING, LLC 8 3.05% $4,058
Fidelity Bank 7 2.59% $5,661
Chickasaw Community Bank 6 3.19% $7,689
HOMESIDE FINANCIAL, LLC 6 3.25% $6,359
U.S. Bank 4 2.97% $4,848
AMCAP MORTGAGE, LTD. 4 3.03% $9,137
Bank of the West 3 3.71% $5,469
CALIBER HOME LOANS, INC. 3 2.54% $5,957
GUARANTEED RATE, INC. 3 3.08% $9,355
IOWA BANKERS MORTGAGE CORPORATION 3 3.08% $7,683
Lincoln Savings Bank 3 2.75% $5,012
Northwest Bank 3 2.75% $6,451
VILLAGE CAPITAL & INVESTMENT LLC 2 3.33% $1,877
HOMESERVICES LENDING, LLC 2 2.88% $5,544
AMERISAVE MORTGAGE CORPORATION 2 2.75% $9,189
PLANET HOME LENDING, LLC 2 2.75% $4,508
PLAZA HOME MORTGAGE, INC. 2 2.56% $5,200
Mr. Cooper ( Nationstar Mortgage ) 2 3.13% $3,753
AmeriHome Mortgage Company, LLC 2 3.13% $3,437
FINANCE OF AMERICA MORTGAGE LLC 2 3.50% $5,786
Carrington Mortgage Services, LLC 2 3.31% $7,069
MID AMERICA MORTGAGE, INC. 2 3.00% $2,277
First Guaranty Mortgage Corporation 2 2.81% $5,027
Great Western Bank 2 2.50% $6,752
NEWREZ LLC 1 2.75% $4,295
OPEN MORTGAGE, LLC 1 2.75% $3,818
PRIMELENDING, A PLAINSCAPITAL COMPANY 1 2.99% $6,011
Servion, Inc. 1 2.75% $4,175
Flagstar Bank, FSB 1 3.63% $6,521
First International Bank & Trust 1 3.63% $5,559
MUTUAL OF OMAHA MORTGAGE, INC. 1 3.25% $5,442
HOMEBRIDGE FINANCIAL SERVICES, INC. 1 3.00% $5,009
DAS Acquisition Company, LLC 1 3.25% $9,126
UNITED WHOLESALE MORTGAGE, LLC 1 3.00% $4,463
Lakeview Community Capital, LLC 1 2.75% $3,589
BROKER SOLUTIONS, INC. 1 3.99% $6,492
Bankers Trust Company 1 2.63% $6,404
AMERICAN FINANCING CORPORATION 1 3.00% $6,118
LOANDEPOT.COM, LLC 1 2.99% $4,732
MOVEMENT MORTGAGE, LLC 1 2.88% $6,451
SUCCESS MORTGAGE PARTNERS, INC. 1 2.88% $6,753
NATIONWIDE MORTGAGE BANKERS, INC. 1 3.13% $7,070

The top Ames FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 37 FHA loans originated. Their average total fees are $5,206, which is $941 lower than the next largest lender, INLANTA MORTGAGE, INC..

The lowest fee Ames FHA lenders (with over 10 loans originated) are FREEDOM MORTGAGE CORPORATION ($4,707), GERSHMAN INVESTMENT CORP. ($4,996), QUICKEN LOANS, LLC ($5,206), FAIRWAY INDEPENDENT MORTGAGE CORPORATION ($5,378) and INLANTA MORTGAGE, INC. ($6,147).

The lowest rate Ames FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (2.75%), AMERICAN PACIFIC MORTGAGE CORPORATION (2.87%), FREEDOM MORTGAGE CORPORATION (2.91%), FAIRWAY INDEPENDENT MORTGAGE CORPORATION (3.15%) and INLANTA MORTGAGE, INC. (3.15%).

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

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).