FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Iowa

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In 2022, the FHA loan limit for single-family homes in Iowa is $420,680. It doesn’t matter whether you’re buying in Ames or Zearing — the FHA loan limit is the same statewide for a single-family home.

Iowa FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ADAIR$420,680$538,650$651,050$809,150$123,000
ADAMS$420,680$538,650$651,050$809,150$103,000
ALLAMAKEE$420,680$538,650$651,050$809,150$88,000
APPANOOSE$420,680$538,650$651,050$809,150$67,000
AUDUBON$420,680$538,650$651,050$809,150$93,000
BENTON$420,680$538,650$651,050$809,150$175,000
BLACK HAWK$420,680$538,650$651,050$809,150$152,000
BOONE$420,680$538,650$651,050$809,150$215,000
BREMER$420,680$538,650$651,050$809,150$152,000
BUCHANAN$420,680$538,650$651,050$809,150$130,000
BUENA VISTA$420,680$538,650$651,050$809,150$144,000
BUTLER$420,680$538,650$651,050$809,150$95,000
CALHOUN$420,680$538,650$651,050$809,150$66,000
CARROLL$420,680$538,650$651,050$809,150$130,000
CASS$420,680$538,650$651,050$809,150$85,000
CEDAR$420,680$538,650$651,050$809,150$160,000
CERRO GORDO$420,680$538,650$651,050$809,150$122,000
CHEROKEE$420,680$538,650$651,050$809,150$87,000
CHICKASAW$420,680$538,650$651,050$809,150$129,000
CLARKE$420,680$538,650$651,050$809,150$129,000
CLAY$420,680$538,650$651,050$809,150$130,000
CLAYTON$420,680$538,650$651,050$809,150$111,000
CLINTON$420,680$538,650$651,050$809,150$94,000
CRAWFORD$420,680$538,650$651,050$809,150$81,000
DALLAS$420,680$538,650$651,050$809,150$269,000
DAVIS$420,680$538,650$651,050$809,150$135,000
DECATUR$420,680$538,650$651,050$809,150$80,000
DELAWARE$420,680$538,650$651,050$809,150$125,000
DES MOINES$420,680$538,650$651,050$809,150$98,000
DICKINSON$420,680$538,650$651,050$809,150$213,000
DUBUQUE$420,680$538,650$651,050$809,150$181,000
EMMET$420,680$538,650$651,050$809,150$67,000
FAYETTE$420,680$538,650$651,050$809,150$74,000
FLOYD$420,680$538,650$651,050$809,150$90,000
FRANKLIN$420,680$538,650$651,050$809,150$82,000
FREMONT$420,680$538,650$651,050$809,150$128,000
GREENE$420,680$538,650$651,050$809,150$75,000
GRUNDY$420,680$538,650$651,050$809,150$152,000
GUTHRIE$420,680$538,650$651,050$809,150$269,000
HAMILTON$420,680$538,650$651,050$809,150$155,000
HANCOCK$420,680$538,650$651,050$809,150$95,000
HARDIN$420,680$538,650$651,050$809,150$86,000
HARRISON$420,680$538,650$651,050$809,150$249,000
HENRY$420,680$538,650$651,050$809,150$120,000
HOWARD$420,680$538,650$651,050$809,150$98,000
HUMBOLDT$420,680$538,650$651,050$809,150$119,000
IDA$420,680$538,650$651,050$809,150$113,000
IOWA$420,680$538,650$651,050$809,150$135,000
JACKSON$420,680$538,650$651,050$809,150$110,000
JASPER$420,680$538,650$651,050$809,150$269,000
JEFFERSON$420,680$538,650$651,050$809,150$125,000
JOHNSON$420,680$538,650$651,050$809,150$271,000
JONES$420,680$538,650$651,050$809,150$175,000
KEOKUK$420,680$538,650$651,050$809,150$70,000
KOSSUTH$420,680$538,650$651,050$809,150$75,000
LEE$420,680$538,650$651,050$809,150$95,000
LINN$420,680$538,650$651,050$809,150$175,000
LOUISA$420,680$538,650$651,050$809,150$79,000
LUCAS$420,680$538,650$651,050$809,150$117,000
LYON$420,680$538,650$651,050$809,150$130,000
MADISON$420,680$538,650$651,050$809,150$269,000
MAHASKA$420,680$538,650$651,050$809,150$124,000
MARION$420,680$538,650$651,050$809,150$175,000
MARSHALL$420,680$538,650$651,050$809,150$98,000
MILLS$420,680$538,650$651,050$809,150$249,000
MITCHELL$420,680$538,650$651,050$809,150$89,000
MONONA$420,680$538,650$651,050$809,150$58,000
MONROE$420,680$538,650$651,050$809,150$99,000
MONTGOMERY$420,680$538,650$651,050$809,150$100,000
MUSCATINE$420,680$538,650$651,050$809,150$125,000
O'BRIEN$420,680$538,650$651,050$809,150$117,000
OSCEOLA$420,680$538,650$651,050$809,150$110,000
PAGE$420,680$538,650$651,050$809,150$70,000
PALO ALTO$420,680$538,650$651,050$809,150$65,000
PLYMOUTH$420,680$538,650$651,050$809,150$163,000
POCAHONTAS$420,680$538,650$651,050$809,150$32,000
POLK$420,680$538,650$651,050$809,150$269,000
POTTAWATTAMIE$420,680$538,650$651,050$809,150$249,000
POWESHIEK$420,680$538,650$651,050$809,150$126,000
RINGGOLD$420,680$538,650$651,050$809,150$45,000
SAC$420,680$538,650$651,050$809,150$80,000
SCOTT$420,680$538,650$651,050$809,150$180,000
SHELBY$420,680$538,650$651,050$809,150$115,000
SIOUX$420,680$538,650$651,050$809,150$167,000
STORY$420,680$538,650$651,050$809,150$215,000
TAMA$420,680$538,650$651,050$809,150$95,000
TAYLOR$420,680$538,650$651,050$809,150$55,000
UNION$420,680$538,650$651,050$809,150$73,000
VAN BUREN$420,680$538,650$651,050$809,150$65,000
WAPELLO$420,680$538,650$651,050$809,150$72,000
WARREN$420,680$538,650$651,050$809,150$269,000
WASHINGTON$420,680$538,650$651,050$809,150$271,000
WAYNE$420,680$538,650$651,050$809,150$100,000
WEBSTER$420,680$538,650$651,050$809,150$87,000
WINNEBAGO$420,680$538,650$651,050$809,150$80,000
WINNESHIEK$420,680$538,650$651,050$809,150$168,000
WOODBURY$420,680$538,650$651,050$809,150$250,000
WORTH$420,680$538,650$651,050$809,150$122,000
WRIGHT$420,680$538,650$651,050$809,150$72,000

How are FHA loan limits determined?

The U.S. Department of Housing and Urban Development (HUD) determines FHA loan limits based on the current year’s conforming loan limit. Home prices went up about 18% last year, so loan limits are also going up.

In 2022, the FHA “floor” — or lowest limit is $420,680 for a single-family home, or 65% of the national conforming loan limit of $647,200. The FHA “ceiling,” which applies only in high-cost areas, is 150% of the conforming loan limit. In 2022, that means a loan limit of $970,800.

How to qualify for an FHA loan in Iowa

Although FHA loans are available to everyone, their more lenient credit score and down payment requirements make them particularly attractive to first-time homebuyers. If this will be your first time buying a home then you may be able to take advantage of Iowa first-time homebuyer programs.

Here are the minimum FHA loan requirements:

A minimum 500 credit score. You might qualify for an FHA loan with a score between 500 and 579. However, you’ll need to make a 10% down payment.

A minimum 3.5% down payment. You may qualify for this amount if you have a credit score of 580 or higher. As noted, a credit score under 580 will mean a higher down payment.

Debt-to-income (DTI) ratio. You’ll want a DTI of 43% or less. This means your total monthly debt spending compared to your income.

FHA home appraisal. To qualify for an FHA loan, you’ll need an FHA appraisal to confirm the value of the home you want to buy.

Mortgage insurance. Two kinds, actually: the annual mortgage insurance premium (MIP), which runs 0.45% to 1.05% of the loan amount and the upfront mortgage insurance premium (UFMIP), which costs 1.75% of the mortgage amount. Both insurance costs are usually financed into the loan.

Occupancy. You must live in the home for at least the first 12 months after 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, rather than with an investment property mortgage. If you live in one unit, you’re allowed to rent out the others. The same FHA loan requirements for single-family homes will apply — including the fact that you could buy a multifamily home with as little as 3.5% down.

FHA lenders in Iowa

Here’s seven highly rated mortgage lenders in Iowa.

Lender nameLT ratingMinimum FHA credit score
Truist 9/10620
Guild Mortgage9/10540
Lower10/10580
Pennymac9/10620
Rocket Mortgage9.5/10580
BMO Harris Bank 8.5/10580
Veterans United9/10620

 

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