Cedar Rapids FHA Loan Rates, Closing Costs & Stats

CEDAR RAPIDS, 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.

    Cedar Rapids's 53 lenders originated 431 FHA loans during 2023. The total origination value was $84,465,000, with an average FHA loan value of $195,974.

    Cedar Rapids FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Cedar Rapids averaged 5.98% for the week of 2024-11-08, compared to the national average (all FHA variants) of 6.425% for the same period.

    Cedar Rapids's average FHA mortgage closing costs are $6,078.

    The average rate for the prior week (2024-11-01) was 6.26% and one month ago for the week of 2024-10-04, the average rate was 5.78%.

    The average rate one year ago was 7.22%.

    For refis of the same type during the week of 2024-11-08, the average rate was 6.36%.

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

    Cedar Rapids 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 Cedar Rapids level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    UNITED WHOLESALE MORTGAGE, LLC 46 6.89% $8,194
    GREENSTATE CREDIT UNION 45 6.09% $6,213
    BROKER SOLUTIONS, INC. 38 6.74% $7,583
    QUICKEN LOANS, LLC 34 6.18% $8,097
    OPEN MORTGAGE, LLC 33 6.95% $8,398
    RESIDENTIAL MORTGAGE NETWORK, INC. 22 6.41% $6,222
    TOWNE MORTGAGE COMPANY 19 6.47% $8,456
    FLAT BRANCH MORTGAGE, INC. 18 6.66% $6,818
    Servion, Inc. 10 6.04% $5,808
    PRIMARY RESIDENTIAL MORTGAGE, INC. 10 7.09% $10,994
    DHI MORTGAGE COMPANY, LTD. 10 5.49% $10,095
    Plains Commerce Bank 9 6.35% $5,813
    CARDINAL FINANCIAL 8 6.52% $12,333
    GUILD MORTGAGE COMPANY 8 6.50% $7,899
    Waterstone Mortgage Corporation 8 6.80% $7,920
    HOMESERVICES LENDING, LLC 7 6.29% $7,961
    FREEDOM MORTGAGE CORPORATION 7 6.82% $12,992
    U.S. Bank 6 6.23% $5,275
    PENNYMAC LOAN SERVICES, LLC 5 6.47% $7,404
    AMERICAN FINANCIAL NETWORK, INC. 5 7.38% $7,371
    AMERICAN PACIFIC MORTGAGE CORPORATION 4 6.56% $15,651
    AMERISAVE MORTGAGE CORPORATION 4 6.09% $9,645
    LOANDEPOT.COM, LLC 4 6.25% $13,176
    Carrington Mortgage Services, LLC 3 6.79% $8,581
    Lincoln Savings Bank 3 7.08% $6,486
    IOWA BANKERS MORTGAGE CORPORATION 3 7.25% $6,799
    POLARIS HOME FUNDING CORP. 2 6.56% $8,861
    BMO Harris Bank 2 7.25% $7,042
    EMM LOANS LLC 2 6.06% $10,463
    GENEVA FINANCIAL, LLC 2 6.69% $12,951
    Mortgage Research Center, LLC 2 7.12% $5,990
    Mr. Cooper ( Nationstar Mortgage ) 2 5.81% $7,475
    NEWREZ LLC 2 6.50% $6,995
    ROYAL UNITED MORTGAGE LLC 2 6.75% $7,104
    UNIVERSAL LENDING CORPORATION 2 6.50% $6,851
    Wells Fargo Bank 2 6.44% $7,903
    KELLER MORTGAGE, LLC 1 6.13% $8,066
    Ixonia Bank 1 6.25% $8,865
    HOMESIDE FINANCIAL, LLC 1 6.75% $7,287
    PLAZA HOME MORTGAGE, INC. 1 6.25% $6,832
    AMCAP MORTGAGE, LTD. 1 6.63% $7,400
    First Federal Bank 1 7.38% $8,742
    EVERETT FINANCIAL, INC. 1 6.63% $6,811
    CROSSCOUNTRY MORTGAGE, LLC 1 6.63% $5,721
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 7.63% $5,546
    CITY FIRST MORTGAGE SERVICES, L.L.C. 1 6.50% $8,217
    The Federal Savings Bank 1 7.25% $10,129
    LAKEVIEW LOAN SERVICING, LLC 1 6.99% $11,897
    CHURCHILL MORTGAGE CORPORATION 1 7.13% $10,857
    Century Mortgage Company DBA Century Lending Company 1 7.25% $4,988
    NATIONS RELIABLE LENDING, LLC 1 6.99% $4,848
    AmeriHome Mortgage Company, LLC 1 6.63% $12,259
    Northpointe Bank 1 5.75% $16,479

    The top Cedar Rapids FHA lender as defined by loan originations is UNITED WHOLESALE MORTGAGE, LLC, with 46 FHA loans originated. Their average total fees are $8,194, which is $1,981 higher than the next largest lender, GREENSTATE CREDIT UNION.

    The lowest fee Cedar Rapids FHA lenders (with over 10 loans originated) are Servion, Inc. ($5,808), GREENSTATE CREDIT UNION ($6,213), RESIDENTIAL MORTGAGE NETWORK, INC. ($6,222), FLAT BRANCH MORTGAGE, INC. ($6,818) and BROKER SOLUTIONS, INC. ($7,583).

    The lowest rate Cedar Rapids FHA lenders (with over 10 loans originated) are DHI MORTGAGE COMPANY, LTD. (5.49%), Servion, Inc. (6.04%), GREENSTATE CREDIT UNION (6.09%), QUICKEN LOANS, LLC (6.18%) and RESIDENTIAL MORTGAGE NETWORK, INC. (6.41%).

    Cedar Rapids FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    CEDAR RAPIDS, IA BENTON 2022 $420,680 $538,650 $651,050 $809,150
    CEDAR RAPIDS, IA JONES 2022 $420,680 $538,650 $651,050 $809,150
    CEDAR RAPIDS, IA LINN 2022 $420,680 $538,650 $651,050 $809,150
    CEDAR RAPIDS, IA BENTON 2023 $472,030 $604,400 $730,525 $907,900
    CEDAR RAPIDS, IA JONES 2023 $472,030 $604,400 $730,525 $907,900
    CEDAR RAPIDS, IA LINN 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).