2019 FHA Loan Limits in Iowa

For the 2019 calendar year, the FHA limit for single-family homes in Iowa is $314,827 statewide, no matter the county in which you’re buying property.

These government-backed loans help homebuyers afford moderately priced properties with a down payment as low as 3.5%.

The Iowa housing market remains relatively affordable for buyers. Statewide, home prices rose 2.9 percent between November 2017 and November 2018, according to the Iowa Association of Realtors, but the median sales price was just $158,000 — far less than the national median of $235,000, as estimated by the National Association of Realtors in the third quarter of 2018.

While homes in metropolises, such as Iowa City and Des Moines, may be a bit pricier, the state continues to be a hotspot for homebuyers prioritizing value. If you’re looking to live the rural life, Iowa can offer a relatively inexpensive way to do so.

However, if the home you want to buy requires a larger mortgage, you can either contribute a bigger down payment or look for an alternative mortgage.

Iowa FHA limits by county

How are FHA loan limits determined?

The FHA loan limits are set yearly by the U.S. Department of Housing and Urban Development, or HUD. Iowa’s loan limit of $314,827 is the same as the national “floor” — the maximum loan the FHA insures in most of the United States. In some high-cost-of-living areas, the FHA loan limit may be as high as $726,525 for a single-family home. But all of Iowa is considered a “low-cost area.”

That floor is calculated by taking 65 percent of the national conforming loan limit, which dictates the largest loan that Fannie Mae and Freddie Mac can purchase. That limit was set at $484,350 for 2019. The FHA ceiling is set at 115 percent of the national conforming loan limit, although no Iowa FHA loans qualify for that amount.

If you’re purchasing a multi-unit property, this limit may increase.

Here are the 2019 standard FHA limits for all property types:

• One-unit: $314,827
• Two-unit: $403,125
• Three-unit: $487,250
• Four-unit: $605,525

Here are the 2019 standard FHA limits for high-cost areas:

• One-unit: $726,525
• Two-unit: $930,300
• Three-unit: $1,124,475
• Four-unit: $1,397,400

Do you qualify for an FHA loan in Iowa?

If you want to buy a home in Iowa, an FHA loan may be a good fit for you. Because homes in Iowa are already so inexpensive, the state’s FHA loan limit can offer a good amount of flexibility to help you purchase the home of your dreams. Want to know more? Check out LendingTree’s FHA loan hub, which provides information on credit score, income and other requirements.