The state of Iowa is a largely rural state located in Midwestern United States. It is the 22nd ranked state in terms of land area and 30th ranged state in terms of population with 3.1 million residents. While the State is largely known for its agricultural dominance and rural perception, there are some big cities and a lot of white-collar companies located throughout the state. Because of the variety of strong industries, various parts of Iowa are among the most quickly growing communities in the country.
Mortgage Laws in Iowa
While the State of Iowa has not had the same level of foreclosures as other areas of the country, the state has still enacted several different laws and statutes designed to protect borrowers from predatory lending. Mortgage lenders today are not permitted to provide mortgages that do not meet certain borrower-benefit standards. Further, negative amortization and interest-only loans with longer terms are no longer permitted. The State of Iowa has also placed certain levels of credit and income requirements that are even a little bit more rigid than those set forth by the FHA.
Housing Outlook for Iowa
Overall, the housing market for Iowa has been strong over the past few years and is expected to remain stable. Most markets across Iowa did not experience the same bubble and collapse as other cities. At the same time, some cities, such as Des Moines, are experiencing an increase in population that will further increase housing demand and prices.
Interest Rates in Iowa
Overall, interest rates in Iowa a little bit lower than they are in other areas of the country. This is partly due to the fact that Iowa has had a lower foreclosure rate than other states, which means lenders can offer lower rates due to less risk. Today, the average rate on a 30-year fixed rate mortgage is 4.10%. A 15-year mortgage rate has an interest rate of 3.30% and 5/1 adjustable rate mortgages can be as low as 3.20%. While these rates are for the most well-qualified borrowers, those that have lower credit scores or do not have a full 20% down payment can still get a mortgage, but may need to pay a higher rate or credit insurance.
Top 5 Cities in Iowa
While Iowa is typically considered to be a rural state with a lot of small towns, there are some bigger cities in the state. The most populated city in Iowa is Des Moines, which has a population of around 210,000 residents and also has several suburbs that bring the metro area population to over 400,000. Cedar Rapids, with a population of 125,000 residents, is the second most-populated city in Iowa. Davenport, Sioux City, and Iowa City are the next three most populated cities with populations of 100,000, 80,000, and 70,000, respectively.