Iowa City FHA Loan Rates, Closing Costs & Stats

IOWA CITY, 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.

    Iowa City's 29 lenders originated 105 FHA loans during 2023. The total origination value was $24,565,000, with an average FHA loan value of $233,952.

    Iowa City FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Iowa City averaged 6.04% for the week of 2024-12-13, compared to the national average (all FHA variants) of 6.277% for the same period.

    Iowa City's average FHA mortgage closing costs are $6,908.

    The average rate for the prior week (2024-12-06) was 5.91% and one month ago for the week of 2024-11-08, the average rate was 5.87%.

    The average rate one year ago was 6.58%.

    For refis of the same type during the week of 2024-12-13, the average rate was 5.43%.

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

    Iowa City 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 Iowa City level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    RESIDENTIAL MORTGAGE NETWORK, INC. 27 6.42% $6,732
    GREENSTATE CREDIT UNION 20 6.14% $6,880
    QUICKEN LOANS, LLC 17 6.31% $8,669
    DHI MORTGAGE COMPANY, LTD. 3 5.54% $13,522
    CARDINAL FINANCIAL 2 6.00% $20,211
    Carrington Mortgage Services, LLC 2 6.25% $9,059
    OPEN MORTGAGE, LLC 2 6.69% $7,985
    BROKER SOLUTIONS, INC. 2 6.75% $8,561
    RUHL MORTGAGE, LLC 2 6.50% $8,647
    AMERISAVE MORTGAGE CORPORATION 2 6.13% $7,604
    UNITED WHOLESALE MORTGAGE, LLC 2 7.06% $10,206
    Mr. Cooper ( Nationstar Mortgage ) 2 5.31% $14,331
    CROSSCOUNTRY MORTGAGE, LLC 2 6.13% $9,857
    The Federal Savings Bank 1 6.50% $16,333
    UNIVERSAL LENDING CORPORATION 1 6.75% $9,182
    AMCAP MORTGAGE, LTD. 1 6.75% $16,174
    ZILLOW HOME LOANS, LLC 1 5.75% $10,349
    AMERICAN FINANCIAL NETWORK, INC. 1 6.25% $11,038
    CHURCHILL MORTGAGE CORPORATION 1 6.75% $6,844
    EMM LOANS LLC 1 6.50% $24,504
    Fortress Bank 1 6.75% $9,687
    GUILD MORTGAGE COMPANY 1 5.75% $11,900
    Ixonia Bank 1 5.50% $10,195
    M&T Bank 1 7.25% $6,982
    MUTUAL OF OMAHA MORTGAGE, INC. 1 6.63% $30,043
    NATIONWIDE MORTGAGE BANKERS, INC. 1 7.25% $6,740
    PENNYMAC LOAN SERVICES, LLC 1 5.00% $12,883
    PLAZA HOME MORTGAGE, INC. 1 6.49% $2,957
    PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.75% $10,741

    The top Iowa City FHA lender as defined by loan originations is RESIDENTIAL MORTGAGE NETWORK, INC., with 27 FHA loans originated. Their average total fees are $6,732, which is $149 lower than the next largest lender, GREENSTATE CREDIT UNION.

    The lowest fee Iowa City FHA lenders (with over 10 loans originated) are RESIDENTIAL MORTGAGE NETWORK, INC. ($6,732), GREENSTATE CREDIT UNION ($6,880), QUICKEN LOANS, LLC ($8,669), .

    The lowest rate Iowa City FHA lenders (with over 10 loans originated) are GREENSTATE CREDIT UNION (6.14%), QUICKEN LOANS, LLC (6.31%), RESIDENTIAL MORTGAGE NETWORK, INC. (6.42%), .

    Iowa City FHA Loan Limits

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

    Market Conditions (Median, Average Prices & Listing Count)

    Realtor.com - Iowa City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Price (YoY Change) Average Listing Price (YoY) MSA/US Median Price Ratio Active Listings
    2018-01-01 $297,620 (6.7%) $330,694 (9.4%) 1.10 698
    2018-02-01 $287,738 (2.8%) $325,822 (6.4%) 1.04 814
    2018-03-01 $300,000 (10.7%) $348,102 (15.3%) 1.05 730
    2018-04-01 $316,425 (19.5%) $358,478 (20.2%) 1.07 729
    2018-05-01 $304,950 (12.1%) $350,856 (17.0%) 1.02 780
    2018-06-01 $299,900 (8.1%) $343,284 (12.2%) 1.00 786
    2018-07-01 $288,400 (1.0%) $338,663 (7.4%) 0.96 783
    2018-08-01 $281,900 (-4.4%) $328,975 (1.5%) 0.94 813
    2018-09-01 $281,900 (-5.7%) $348,303 (7.1%) 0.95 854
    2018-10-01 $279,925 (-4.4%) $325,506 (1.2%) 0.95 845
    2018-11-01 $274,675 (-6.9%) $322,036 (-1.6%) 0.93 804
    2018-12-01 $274,900 (-6.3%) $326,923 (-0.2%) 0.95 740
    2019-01-01 $279,450 (-6.1%) $321,034 (-2.9%) 0.97 716
    2019-02-01 $283,400 (-1.5%) $325,837 (0.0%) 0.96 777
    2019-03-01 $278,514 (-7.2%) $327,556 (-5.9%) 0.91 976
    2019-04-01 $271,064 (-14.3%) $320,835 (-10.5%) 0.86 1,199
    2019-05-01 $273,950 (-10.2%) $312,813 (-10.8%) 0.86 1,239
    2019-06-01 $279,000 (-7.0%) $320,811 (-6.6%) 0.87 1,180
    2019-07-01 $279,450 (-3.1%) $319,734 (-5.6%) 0.87 1,103
    2019-08-01 $278,564 (-1.2%) $321,295 (-2.3%) 0.88 1,046
    2019-09-01 $276,559 (-1.9%) $320,082 (-8.1%) 0.89 1,024
    2019-10-01 $274,950 (-1.8%) $317,923 (-2.3%) 0.89 1,001
    2019-11-01 $274,900 (0.1%) $318,401 (-1.1%) 0.90 919
    2019-12-01 $274,900 (0.0%) $315,746 (-3.4%) 0.92 804
    2020-01-01 $274,900 (-1.6%) $309,201 (-3.7%) 0.92 794
    2020-02-01 $274,900 (-3.0%) $308,424 (-5.3%) 0.90 952
    2020-03-01 $269,950 (-3.1%) $306,590 (-6.4%) 0.85 1,207
    2020-04-01 $272,450 (0.5%) $309,717 (-3.5%) 0.85 1,214
    2020-05-01 $275,000 (0.4%) $317,757 (1.6%) 0.84 1,207
    2020-06-01 $278,400 (-0.2%) $326,791 (1.9%) 0.82 1,180
    2020-07-01 $279,700 (0.1%) $326,716 (2.2%) 0.81 1,087
    2020-08-01 $279,900 (0.5%) $328,923 (2.4%) 0.80 997
    2020-09-01 $271,725 (-1.8%) $324,557 (1.4%) 0.78 989
    2020-10-01 $274,900 (0.0%) $324,917 (2.2%) 0.79 936
    2020-11-01 $273,450 (-0.5%) $327,140 (2.7%) 0.80 825
    2020-12-01 $270,100 (-1.8%) $327,863 (3.8%) 0.80 724
    2021-01-01 $279,900 (1.8%) $329,954 (6.7%) 0.84 607
    2021-02-01 $280,491 (2.0%) $336,764 (9.2%) 0.82 739
    2021-03-01 $278,925 (3.3%) $330,589 (7.8%) 0.79 850
    2021-04-01 $280,950 (3.1%) $331,393 (7.0%) 0.76 932
    2021-05-01 $289,900 (5.4%) $337,754 (6.3%) 0.77 939
    2021-06-01 $299,660 (7.6%) $358,097 (9.6%) 0.79 868
    2021-07-01 $289,900 (3.7%) $360,155 (10.2%) 0.76 813
    2021-08-01 $298,450 (6.6%) $369,300 (12.3%) 0.80 731
    2021-09-01 $300,475 (10.6%) $379,646 (17.0%) 0.80 657
    2021-10-01 $298,900 (8.7%) $371,244 (14.3%) 0.80 632
    2021-11-01 $299,900 (9.7%) $374,472 (14.5%) 0.80 619
    2021-12-01 $294,925 (9.2%) $373,611 (14.0%) 0.80 588
    2022-01-01 $310,000 (10.8%) $372,698 (13.0%) 0.84 540
    2022-02-01 $315,950 (12.6%) $372,607 (10.6%) 0.82 603
    2022-03-01 $309,500 (11.0%) $369,964 (11.9%) 0.77 704
    2022-04-01 $315,000 (12.1%) $385,107 (16.2%) 0.75 830
    2022-05-01 $323,725 (11.7%) $393,573 (16.5%) 0.74 822
    2022-06-01 $333,000 (11.1%) $405,526 (13.2%) 0.74 793
    2022-07-01 $339,900 (17.3%) $408,053 (13.3%) 0.77 733
    2022-08-01 $339,900 (13.9%) $403,939 (9.4%) 0.79 660
    2022-09-01 $337,000 (12.2%) $397,801 (4.8%) 0.79 652
    2022-10-01 $339,900 (13.7%) $400,248 (7.8%) 0.80 612
    2022-11-01 $343,000 (14.4%) $410,327 (9.6%) 0.82 597
    2022-12-01 $349,900 (18.6%) $415,590 (11.2%) 0.86 550
    2023-01-01 $359,900 (16.1%) $419,046 (12.4%) 0.89 553
    2023-02-01 $357,450 (13.1%) $422,099 (13.3%) 0.86 611
    2023-03-01 $357,450 (15.5%) $425,499 (15.0%) 0.84 688
    2023-04-01 $354,900 (12.7%) $430,604 (11.8%) 0.83 755
    2023-05-01 $368,495 (13.8%) $446,333 (13.4%) 0.84 754
    2023-06-01 $365,873 (9.9%) $442,838 (9.2%) 0.82 749
    2023-07-01 $365,000 (7.4%) $443,131 (8.6%) 0.83 697
    2023-08-01 $364,900 (7.4%) $440,324 (9.0%) 0.84 680
    2023-09-01 $362,500 (7.6%) $439,491 (10.5%) 0.84 668
    2023-10-01 $349,675 (2.9%) $673,077 (68.2%) 0.82 576
    2023-11-01 $347,500 (1.3%) $432,255 (5.3%) 0.83 563
    2023-12-01 $360,000 (2.9%) $441,369 (6.2%) 0.88 517
    2024-01-01 $362,448 (0.7%) $447,710 (6.8%) 0.89 496
    2024-02-01 $350,000 (-2.1%) $436,306 (3.4%) 0.84 541
    2024-03-01 $349,900 (-2.1%) $424,105 (-0.3%) 0.82 668
    2024-04-01 $344,975 (-2.8%) $415,963 (-3.4%) 0.80 743
    2024-05-01 $357,450 (-3.0%) $429,395 (-3.8%) 0.81 740
    2024-06-01 $365,900 (0.0%) $435,496 (-1.7%) 0.82 759
    2024-07-01 $370,470 (1.5%) $440,384 (-0.6%) 0.85 711
    2024-08-01 $365,000 (0.0%) $440,752 (0.1%) 0.85 664
    2024-09-01 $355,345 (-2.0%) $431,271 (-1.9%) 0.84 680
    2024-10-01 $359,950 (2.9%) $436,931 (-35.1%) 0.85 673
    2024-11-01 $360,000 (3.6%) $447,251 (3.5%) 0.86 651
    Iowa City's median listing price for 2024-11-01 was $360,000, a difference of $12,500 (3.6%) versus the prior year and $50 versus the prior month.

    Iowa City's median listing price comes in at 86% of the national average.

    Iowa City's average listing price for 2024-11-01 was $447,251, a difference of $14,996 (3.5%) versus the prior year and $10,320 versus the prior month.

    For the 2024-11-01 period, Iowa City had 651 MLS listings, a difference of -22 listings (-3%) versus the prior month and 88 listings (16%) versus the prior year.

    Median Listing Time on Market & Square Footage

    Realtor.com - Iowa City (CBSA) retrieved from FRED, Federal Reserve Bank of St. Louis
    Date Median Listing Time on Market Median Square Footage
    2018-01-01 45 days 2,137 sqft
    2018-02-01 40 days 2,131 sqft
    2018-03-01 50 days 2,190 sqft
    2018-04-01 54 days 2,202 sqft
    2018-05-01 60 days 2,179 sqft
    2018-06-01 63 days 2,176 sqft
    2018-07-01 62 days 2,130 sqft
    2018-08-01 65 days 2,106 sqft
    2018-09-01 64 days 2,099 sqft
    2018-10-01 69 days 2,093 sqft
    2018-11-01 77 days 2,060 sqft
    2018-12-01 95 days 2,089 sqft
    2019-01-01 50 days 2,092 sqft
    2019-02-01 42 days 2,090 sqft
    2019-03-01 47 days 2,087 sqft
    2019-04-01 49 days 2,047 sqft
    2019-05-01 55 days 2,046 sqft
    2019-06-01 60 days 2,080 sqft
    2019-07-01 61 days 2,098 sqft
    2019-08-01 61 days 2,088 sqft
    2019-09-01 63 days 2,057 sqft
    2019-10-01 65 days 2,030 sqft
    2019-11-01 79 days 2,030 sqft
    2019-12-01 98 days 2,021 sqft
    2020-01-01 62 days 1,972 sqft
    2020-02-01 40 days 1,941 sqft
    2020-03-01 51 days 1,966 sqft
    2020-04-01 58 days 1,984 sqft
    2020-05-01 68 days 1,998 sqft
    2020-06-01 73 days 2,008 sqft
    2020-07-01 71 days 1,992 sqft
    2020-08-01 70 days 1,988 sqft
    2020-09-01 67 days 1,939 sqft
    2020-10-01 68 days 1,920 sqft
    2020-11-01 76 days 1,950 sqft
    2020-12-01 83 days 1,891 sqft
    2021-01-01 53 days 1,888 sqft
    2021-02-01 39 days 1,846 sqft
    2021-03-01 42 days 1,828 sqft
    2021-04-01 40 days 1,842 sqft
    2021-05-01 47 days 1,852 sqft
    2021-06-01 49 days 1,907 sqft
    2021-07-01 50 days 1,906 sqft
    2021-08-01 50 days 1,868 sqft
    2021-09-01 58 days 1,898 sqft
    2021-10-01 53 days 1,856 sqft
    2021-11-01 51 days 1,845 sqft
    2021-12-01 61 days 1,809 sqft
    2022-01-01 50 days 1,868 sqft
    2022-02-01 47 days 1,876 sqft
    2022-03-01 36 days 1,873 sqft
    2022-04-01 34 days 1,870 sqft
    2022-05-01 44 days 1,935 sqft
    2022-06-01 48 days 1,972 sqft
    2022-07-01 51 days 1,971 sqft
    2022-08-01 56 days 2,005 sqft
    2022-09-01 53 days 2,025 sqft
    2022-10-01 59 days 2,022 sqft
    2022-11-01 68 days 2,096 sqft
    2022-12-01 82 days 2,093 sqft
    2023-01-01 56 days 2,120 sqft
    2023-02-01 40 days 2,112 sqft
    2023-03-01 46 days 2,118 sqft
    2023-04-01 43 days 2,108 sqft
    2023-05-01 44 days 2,186 sqft
    2023-06-01 50 days 2,179 sqft
    2023-07-01 52 days 2,182 sqft
    2023-08-01 52 days 2,177 sqft
    2023-09-01 49 days 2,146 sqft
    2023-10-01 54 days 2,136 sqft
    2023-11-01 58 days 2,119 sqft
    2023-12-01 71 days 2,131 sqft
    2024-01-01 59 days 2,131 sqft
    2024-02-01 46 days 2,119 sqft
    2024-03-01 41 days 2,102 sqft
    2024-04-01 39 days 2,063 sqft
    2024-05-01 43 days 2,130 sqft
    2024-06-01 45 days 2,130 sqft
    2024-07-01 51 days 2,159 sqft
    2024-08-01 57 days 2,146 sqft
    2024-09-01 52 days 2,058 sqft
    2024-10-01 53 days 2,062 sqft
    2024-11-01 61 days 2,042 sqft
    Iowa City's median listing age (time on market) for 2024-11-01 was 61 days. This is 6% longer than the same period one year ago.

    Iowa City's median square footage for active listings during the 2024-11-01 period was 2,042 sqft. One year prior, the average listing was 2,119 sqft.

    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).