If you’re a first time home buyer in Iowa, you’re making a wise choice. Iowa boasts some of the best average home prices in the nation, which makes the area ideally suited to first time home buyers. But the mortgage process can still be difficult or confusing for individuals who have never taken out a home loan before. Much of that stress can be eliminated through proper research.
We’ve put together a comprehensive first time home buyer checklist to help you get to know the process better. To get you started, we’ve outlined the five most important steps here.
These five steps will keep you on the right track. There are other steps to be aware of, too. Look at our checklist for more information. You can also use the following calculator to get an estimate of what your mortgage payments will look like on your new loan.
The Iowa FHA loan program is one of the most secure and effective means of financing a home purchase in Iowa. The Federal Housing Administration insures all FHA loans, which are most often provided to buyer who don’t have high income or cash reserves.
High credit is not required for an FHA loan, and you don’t need to make a large down payment. These are all major benefits of the FHA mortgage program. One of the few downsides is that you’ll have to pay for private mortgage insurance.
To qualify for an FHA loan, your mortgage amount must rest beneath the FHA limit for your county. Check the Iowa FHA loan limits before you proceed. You can also get more information at the Iowa page of the FHA website.
As mentioned earlier, Iowa has low property costs and a very high rate of home ownership, one of the highest in the nation. It’s a state that is well accustomed to working with first time home buyers. Iowa is a state with a strong education system. The state has had the second highest SAT scores in the nation. The state has a high homeownership rate of 72.3% and a median home price of $82,500.
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