Iowa FHA Loan Requirements 2026
One FHA limit covers all 99 Iowa counties. Here is what it is, what you need to qualify, and what mortgage insurance will cost you.
Iowa FHA loan limits
Every county in Iowa shares one FHA limit in 2026. There is no high-cost county anywhere in the state, so the limit in Polk County is the limit in Ringgold County.
| Units | 2026 FHA limit |
|---|---|
| One-family | $541,287 |
| Two-family | $693,050 |
| Three-family | $837,700 |
| Four-family | $1,041,125 |
This figure is the 2026 national floor. HUD calculates county limits from local median home prices, and where 115% of that median falls below the floor, the floor applies. Iowa prices put every county in that category. Confirm any county at the HUD FHA mortgage limits lookup.
FHA credit and down payment requirements
FHA’s appeal in Iowa is the same as everywhere: a low down payment and tolerance for credit histories that conventional underwriting would decline.
- 3.5% down with a credit score of 580 or above.
- 10% down for scores between 500 and 579.
- The home must be your primary residence and must pass an FHA appraisal.
- Debt-to-income flexibility is greater than conventional, though lenders apply their own overlays.
On a $250,000 Iowa purchase — comfortably above the median in most of the state — 3.5% down is $8,750.
FHA mortgage insurance premiums (MIP)
FHA charges mortgage insurance twice: once upfront and once annually. These are national figures, not Iowa-specific.
| Premium | Rate | How long |
|---|---|---|
| Upfront MIP | 1.75% of the base loan amount | Paid at closing or financed into the loan |
| Annual MIP, LTV above 95% | 0.55% | The full mortgage term |
| Annual MIP, LTV above 90% to 95% | 0.50% | The full mortgage term |
| Annual MIP, LTV 90% or below | 0.50% | 11 years |
Rates shown are for terms longer than 15 years. Because every Iowa FHA loan falls below HUD’s higher loan-amount tier, only these rates apply in the state. The practical consequence is that a 3.5% down FHA loan carries mortgage insurance for its entire life — the only way off it is to refinance out of FHA.
FHA compared with conventional in Iowa
| Factor | FHA | Conventional |
|---|---|---|
| Minimum down payment | 3.5% | 3% |
| Minimum credit score | 580 | Set by lender |
| Mortgage insurance | Upfront plus annual, usually for the loan’s life | Monthly only, cancellable at 20% equity |
| 2026 loan limit in Iowa | $541,287 | $832,750 |
The trade is straightforward. FHA is easier to qualify for; conventional is cheaper to carry once you have equity. In Iowa, where home prices sit well below both limits, the loan limit is rarely the deciding factor — credit score and mortgage insurance almost always are.
Pairing FHA with Iowa Finance Authority programs
An FHA loan can sit underneath the Iowa Finance Authority’s assistance. FirstHome and Homes for Iowans both allow FHA financing, which means an Iowa buyer can combine FHA’s 3.5% down with a $2,500 grant, or with the 2nd Loan of up to 5%.
Both IFA programs require a 640 credit score, which is higher than FHA’s own 580 floor. A buyer between 580 and 639 can use FHA but not the IFA assistance. Program terms are published by the Iowa Finance Authority.
