FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in Iowa

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In 2023, the FHA loan limit for single-family homes in Iowa is $472,030. There are no “high-cost” areas in the state, which means the limit is the same regardless of what county you’re buying in with an FHA loan.

Iowa FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ADAIR$472,030$604,400$730,525$907,900$95,000
ADAMS$472,030$604,400$730,525$907,900$80,000
ALLAMAKEE$472,030$604,400$730,525$907,900$115,000
APPANOOSE$472,030$604,400$730,525$907,900$83,000
AUDUBON$472,030$604,400$730,525$907,900$75,000
BENTON$472,030$604,400$730,525$907,900$183,000
BLACK HAWK$472,030$604,400$730,525$907,900$175,000
BOONE$472,030$604,400$730,525$907,900$239,000
BREMER$472,030$604,400$730,525$907,900$175,000
BUCHANAN$472,030$604,400$730,525$907,900$150,000
BUENA VISTA$472,030$604,400$730,525$907,900$137,000
BUTLER$472,030$604,400$730,525$907,900$130,000
CALHOUN$472,030$604,400$730,525$907,900$77,000
CARROLL$472,030$604,400$730,525$907,900$141,000
CASS$472,030$604,400$730,525$907,900$85,000
CEDAR$472,030$604,400$730,525$907,900$172,000
CERRO GORDO$472,030$604,400$730,525$907,900$136,000
CHEROKEE$472,030$604,400$730,525$907,900$100,000
CHICKASAW$472,030$604,400$730,525$907,900$105,000
CLARKE$472,030$604,400$730,525$907,900$110,000
CLAY$472,030$604,400$730,525$907,900$140,000
CLAYTON$472,030$604,400$730,525$907,900$110,000
CLINTON$472,030$604,400$730,525$907,900$121,000
CRAWFORD$472,030$604,400$730,525$907,900$95,000
DALLAS$472,030$604,400$730,525$907,900$326,000
DAVIS$472,030$604,400$730,525$907,900$88,000
DECATUR$472,030$604,400$730,525$907,900$65,000
DELAWARE$472,030$604,400$730,525$907,900$159,000
DES MOINES$472,030$604,400$730,525$907,900$189,000
DICKINSON$472,030$604,400$730,525$907,900$270,000
DUBUQUE$472,030$604,400$730,525$907,900$195,000
EMMET$472,030$604,400$730,525$907,900$88,000
FAYETTE$472,030$604,400$730,525$907,900$75,000
FLOYD$472,030$604,400$730,525$907,900$99,000
FRANKLIN$472,030$604,400$730,525$907,900$86,000
FREMONT$472,030$604,400$730,525$907,900$80,000
GREENE$472,030$604,400$730,525$907,900$80,000
GRUNDY$472,030$604,400$730,525$907,900$175,000
GUTHRIE$472,030$604,400$730,525$907,900$326,000
HAMILTON$472,030$604,400$730,525$907,900$111,000
HANCOCK$472,030$604,400$730,525$907,900$107,000
HARDIN$472,030$604,400$730,525$907,900$89,000
HARRISON$472,030$604,400$730,525$907,900$289,000
HENRY$472,030$604,400$730,525$907,900$135,000
HOWARD$472,030$604,400$730,525$907,900$108,000
HUMBOLDT$472,030$604,400$730,525$907,900$125,000
IDA$472,030$604,400$730,525$907,900$84,000
IOWA$472,030$604,400$730,525$907,900$149,000
JACKSON$472,030$604,400$730,525$907,900$130,000
JASPER$472,030$604,400$730,525$907,900$326,000
JEFFERSON$472,030$604,400$730,525$907,900$126,000
JOHNSON$472,030$604,400$730,525$907,900$290,000
JONES$472,030$604,400$730,525$907,900$183,000
KEOKUK$472,030$604,400$730,525$907,900$78,000
KOSSUTH$472,030$604,400$730,525$907,900$102,000
LEE$472,030$604,400$730,525$907,900$112,000
LINN$472,030$604,400$730,525$907,900$183,000
LOUISA$472,030$604,400$730,525$907,900$90,000
LUCAS$472,030$604,400$730,525$907,900$105,000
LYON$472,030$604,400$730,525$907,900$165,000
MADISON$472,030$604,400$730,525$907,900$326,000
MAHASKA$472,030$604,400$730,525$907,900$138,000
MARION$472,030$604,400$730,525$907,900$175,000
MARSHALL$472,030$604,400$730,525$907,900$120,000
MILLS$472,030$604,400$730,525$907,900$289,000
MITCHELL$472,030$604,400$730,525$907,900$130,000
MONONA$472,030$604,400$730,525$907,900$85,000
MONROE$472,030$604,400$730,525$907,900$82,000
MONTGOMERY$472,030$604,400$730,525$907,900$95,000
MUSCATINE$472,030$604,400$730,525$907,900$150,000
O'BRIEN$472,030$604,400$730,525$907,900$116,000
OSCEOLA$472,030$604,400$730,525$907,900$99,000
PAGE$472,030$604,400$730,525$907,900$83,000
PALO ALTO$472,030$604,400$730,525$907,900$92,000
PLYMOUTH$472,030$604,400$730,525$907,900$193,000
POCAHONTAS$472,030$604,400$730,525$907,900$64,000
POLK$472,030$604,400$730,525$907,900$326,000
POTTAWATTAMIE$472,030$604,400$730,525$907,900$289,000
POWESHIEK$472,030$604,400$730,525$907,900$150,000
RINGGOLD$472,030$604,400$730,525$907,900$60,000
SAC$472,030$604,400$730,525$907,900$85,000
SCOTT$472,030$604,400$730,525$907,900$194,000
SHELBY$472,030$604,400$730,525$907,900$130,000
SIOUX$472,030$604,400$730,525$907,900$185,000
STORY$472,030$604,400$730,525$907,900$239,000
TAMA$472,030$604,400$730,525$907,900$88,000
TAYLOR$472,030$604,400$730,525$907,900$62,000
UNION$472,030$604,400$730,525$907,900$89,000
VAN BUREN$472,030$604,400$730,525$907,900$75,000
WAPELLO$472,030$604,400$730,525$907,900$75,000
WARREN$472,030$604,400$730,525$907,900$326,000
WASHINGTON$472,030$604,400$730,525$907,900$290,000
WAYNE$472,030$604,400$730,525$907,900$74,000
WEBSTER$472,030$604,400$730,525$907,900$100,000
WINNEBAGO$472,030$604,400$730,525$907,900$105,000
WINNESHIEK$472,030$604,400$730,525$907,900$183,000
WOODBURY$472,030$604,400$730,525$907,900$280,000
WORTH$472,030$604,400$730,525$907,900$136,000
WRIGHT$472,030$604,400$730,525$907,900$80,000

How are FHA loan limits determined?

Each year, the U.S. Department of Housing and Urban Development (HUD) determines FHA loan limits based on a percentage of conforming loan limits published by the Federal Housing Finance Agency. The “floor” is set at 65% of the conforming loan limit, which is $472,030 for all counties in the state of Iowa.

You may also hear about the FHA “ceiling” which allows for loan amounts to be increased up to 150% of conforming limits so borrowers can purchase homes in high-cost parts of the country, up to a maximum of $1,089,300 for a one-unit home. The loan limits vary based on home sales in the prior year, and in Iowa, price increases weren’t high enough to hit the “high-cost” loan threshold.

How to qualify for an FHA loan in Iowa

FHA loans are particularly attractive to home owners due to their more lenient credit score requirements. With median home prices in Iowa only rising to $326,000 the past year, you ‘ve got plenty of FHA borrowing power with limits up to $472,030 for single-family homes.

Besides keeping your loan below the FHA loan limits in Iowa, you’ll need to meet the following, FHA loan requirements:

Credit score and down payment. To make the minimum FHA down payment of 3.5%, you’ll need at least a 580 credit score. FHA-approved lenders may approve you for a score as low as 500 if you can come up with a 10% down payment.

Debt-to-income (DTI) ratio. Lenders prefer that your total monthly debt is less than 43% of your monthly income. This measure is called your DTI ratio, and there is some wiggle room if you have strong credit scores and cash reserves.

Mortgage insurance. You’ll pay two types of mortgage insurance. The annual mortgage insurance premium (MIP), which runs 0.45% to 1.05% of the loan amount is divided by 12 and added to your monthly payment. The upfront mortgage insurance premium (UFMIP), which costs 1.75% of the mortgage amount, is typically added to your loan amount.

Occupancy. You must live in a home financed with an FHA loan at least 12 months after you purchase it.

FHA home appraisal. You’ll need an FHA appraisal to confirm the value and condition of the home you want to purchase.

Buying a multifamily property with an FHA loan

It’s possible to buy a multifamily home (up to four separate units) with an FHA loan and only make a 3.5% down payment, as long as you live in one of the units for at least a year. An added perk: You may be able to use the rents on the other units to help you qualify, and the FHA loan limits are higher for each additional unit up to four total.

The FHA loan limits for multifamily homes in Iowa for 2023 are below:

Number of units2023 FHA loan limits in Iowa
Two$604,400
Three$730,525
Four$907,900

FHA lenders in Iowa

Lender nameLT ratingMinimum FHA credit score
Caliber Home Loans3 stars620
Fairway Independent Mortgage3 stars580
Homebridge Financial Services3 starsNot published
Truist Mortgage4 stars580
PennyMac Mortgage5 stars580

 

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