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Buying a home

Data from November 2026

Buying a home in Iowa

A typical home in Iowa is worth $208,000 (Average 2020–2024). The FHA limit for one unit is $541,287 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$208,000
median value, Average 2020–2024
37% less than the U.S.
FHA limit
$541,287
one unit, by county
All of Iowa uses the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$7,280
3.5% of a $208,000 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $208,000 home, the typical value in Iowa. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $208,000 home in Iowa

  1. FHA Program rule

    Minimum down3.5%

    In dollars$7,280

    Per month$1,360

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$6,240

    Per month$1,367

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,409

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,409

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$31,200

    Per month$1,198

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

In 2026 data, every county in Iowa uses the national FHA floor ($541,287) for one unit. The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Iowa programs for buyers

2 verified programs that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • FirstHome Down Payment and Closing Costs (2nd Loan)

    Verified November 5, 2026

    With the Iowa state authority's FirstHome mortgage, a first-time buyer can get a second loan of up to 3% of the price (maximum $10,000) or up to 5% (maximum $15,000), with no monthly payments, repaid when you sell, refinance or pay off the mortgage

    • Deferred
    See details

  • Homes for Iowans Down Payment and Closing Costs Assistance

    Verified November 5, 2026

    Iowa state authority second loan, with the Homes for Iowans mortgage, of up to 3% of the price (maximum $10,000) or 5% (maximum $15,000) for the down payment and closing costs; no monthly payments, and for any buyer

    • Deferred
    See details

What the state publishes

Iowa rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Iowa

Exemptions and caps

  • Homestead exemption: 10% of taxable value

    A 2026 law (SF 2472) replaced Iowa's homestead credit with a homestead exemption. The exemption takes 10 percent off the taxable value of your homestead (your main home). The minimum is $5,500 and the maximum is $20,000 of taxable value. An exemption lowers the value you pay taxes on; a credit lowers the tax directly. The change applies starting with the 2026 assessment, which covers taxes paid in September 2027 and March 2028. Starting with assessment year 2027, the Department adjusts the maximum each year for inflation.

    Iowa Code §425.1A(1A), added by 2026 Iowa Acts, SF 2472, div. XX · Iowa Department of Revenue · Verified October 24, 2026

  • Additional exemption for owners 65 and older

    If you are 65 or older on or before January 1 of the assessment year, you are eligible for an additional homestead exemption of $6,500 of taxable value. Once approved, it applies in later years without refiling.

    Iowa Code §425.1A(1) · Iowa Department of Revenue · Verified October 24, 2026

Your next steps

Where to go next in Iowa

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Iowa calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    11 HUD-approved agencies help you prepare to buy; 4 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Iowa?

For a $208,000 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $7,280 and the conventional minimum (3%) is $6,240. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Iowa?

No. In 2026 data, every county in Iowa uses the national FHA floor ($541,287) for one unit.

What is the conforming loan limit in Iowa?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Iowa: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Iowa?

With $208,000, the FHA minimum down payment ($7,280) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,360 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Iowa?

We have verified 2 state programs in Iowa that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.