Iowa City FHA Loan Rates, Closing Costs & Stats

IOWA CITY, 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.

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 6.36% for the week of 2024-06-07, compared to the national average (all FHA variants) of 6.692% for the same period.

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

The average rate for the prior week (2024-05-31) was 6.64% and one month ago for the week of 2024-05-03, the average rate was 6.64%.

The average rate one year ago was 6.41%.

For refis of the same type during the week of 2024-06-07, the average rate was 6.04%.

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
Iowa City's median listing price for 2024-05-01 was $357,450, a difference of $-11,045 (-3.0%) versus the prior year and $12,475 versus the prior month.

Iowa City's median listing price comes in at 81% of the national average.

Iowa City's average listing price for 2024-05-01 was $429,395, a difference of $-16,938 (-3.8%) versus the prior year and $13,432 versus the prior month.

For the 2024-05-01 period, Iowa City had 740 MLS listings, a difference of -3 listings (0%) versus the prior month and -14 listings (-2%) 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
Iowa City's median listing age (time on market) for 2024-05-01 was 43 days. This is -2% shorter than the same period one year ago.

Iowa City's median square footage for active listings during the 2024-05-01 period was 2,130 sqft. One year prior, the average listing was 2,186 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).