Iowa City VA Loan Rates, Closing Costs & Stats

IOWA CITY, IA

A VA loan is a mortgage loan that’s backed by the Department of Veterans Affairs (VA) for those who have served or are presently serving in the U.S. military. The VA does not directly lend, it guarantees the loans made by private lenders to veterans, active military personnel, and qualifying military spouses.

The most obvious benefit of VA loans is that no downpayment is necessary to purchase a home. They will also typically have significantly lower fees-- meaning that if you're eligible to receive a VA loan, it will likely be the most favorable option. VA loans come in 3 varities: purchase, refinance and cash out refis.

For additional benefits of VA loans, click here.

Iowa City's 24 lenders originated 91 VA loans during 2023. The total origination value was $27,975,000, with an average VA loan value of $307,418.

Iowa City VA Loans, 30 Year Fixed Rates

30 Year VA mortgages in Iowa City averaged 5.98% for the week of 2024-07-19, compared to the national average (all VA variants) of 6.303% for the same period.

Iowa City's average VA mortgage closing costs are $4,635.

The average rate for the prior week (2024-07-12) was 6.22% and one month ago for the week of 2024-06-14, the average rate was 6.28%.

The average rate one year ago was 6.66%.

For refis of the same type during the week of 2024-07-19, the average rate was 5.67%.

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

Iowa City VA Loan Lenders by Rates & Fees

The below table looks at the average fees/closing costs and rates for VA 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. 32 6.25% $3,505
Mortgage Research Center, LLC 15 6.80% $6,262
GREENSTATE CREDIT UNION 11 5.78% $4,435
PENNYMAC LOAN SERVICES, LLC 3 5.13% $5,460
NEWREZ LLC 3 6.38% $16,781
U.S. Bank 2 6.62% $12,279
VERIDIAN CREDIT UNION 2 5.25% $13,221
PLANET HOME LENDING, LLC 2 6.94% $5,919
MOVEMENT MORTGAGE, LLC 2 6.00% $5,434
NAVY FEDERAL CREDIT UNION 2 5.50% $14,340
RUHL MORTGAGE, LLC 2 6.00% $12,673
QUICKEN LOANS, LLC 1 6.99% $6,529
USAA Federal Savings Bank 1 7.25% $2,166
NEW DAY FINANCIAL, LLC 1 7.49% $7,057
BankIowa of Cedar Rapids 1 6.38% $6,422
BROKER SOLUTIONS, INC. 1 7.25% $17,307
FLAT BRANCH MORTGAGE, INC. 1 5.75% $5,728
FREEDOM MORTGAGE CORPORATION 1 6.75% $21,049
GUILD MORTGAGE COMPANY 1 7.13% $8,539
LOANDEPOT.COM, LLC 1 5.99% $8,618
Magnolia Bank 1 6.88% $8,977
AMERICAN PACIFIC MORTGAGE CORPORATION 1 7.63% $11,488
Plains Commerce Bank 1 7.13% $6,664
PRIMARY RESIDENTIAL MORTGAGE, INC. 1 6.50% $15,786

The top Iowa City VA lender as defined by loan originations is RESIDENTIAL MORTGAGE NETWORK, INC., with 32 VA loans originated. Their average total fees are $3,505, which is $2,757 lower than the next largest lender, Mortgage Research Center, LLC.

The lowest fee Iowa City VA lenders (with over 10 loans originated) are RESIDENTIAL MORTGAGE NETWORK, INC. ($3,505), GREENSTATE CREDIT UNION ($4,435), Mortgage Research Center, LLC ($6,262), .

The lowest rate Iowa City VA lenders (with over 10 loans originated) are GREENSTATE CREDIT UNION (5.78%), RESIDENTIAL MORTGAGE NETWORK, INC. (6.25%), Mortgage Research Center, LLC (6.80%), .

VA Loan Features

  • No down payment required
  • Negotiable and competitive interest rate.
  • Ability to finance the VA funding fee (plus reduced funding fees with a down payment of at least 5 percent and exemption for veterans receiving VA compensation).
  • VA rules limit the amount you can be charged for closing costs.
  • Closing costs are comparable with other financing types (and may be lower).
  • Closing costs may be paid by the seller.
  • No private mortgage insurance premiums are required.
  • An assumable mortgage.
  • Right to prepay your mortgage without penalty.
  • For homes inspected by VA during construction, a warranty from builder and assistance from VA to obtain cooperation of builder.
  • VA assistance to veteran borrowers in default due to temporary financial difficulty.