Des Moines Mortgage

Those looking to find a mortgage in Des Moines, Iowa are likely aware of the community’s many benefits. It combines a strong workforce with a high quality of life and stable economy. Because lenders are also aware of these qualities, Des Moines is a great place in which to get a mortgage.

Housing values in and around Des Moines have been extremely stable. Based on data from Zillow.com, as of March 2010, housing prices have fallen approximately six percent from their peak in mid-2008—from approximately $116,000 to 109,300. Even in higher cost areas, such as Johnston, the median price has only dropped by about ten percent since, in Johnston’s case, a peak in mid-2006. This indicates an extremely stable housing market, largely supported by a relative lack of overbuilding and Des Moines’ strong economy which is anchored by state government and by the insurance industry. Des Moines also enjoys a median housing price which is well significantly below that of the country as a whole. As a comparison, the median housing price in the United States was approximately $171,000 in March, 2010, which is fifty-six percent above that of the city of Des Moines.

With this in mind, most mortgages in Des Moines are well within the limits for a conforming loan. Those looking to purchase a home at twice the area’s median with a purchase price of $218,600 and put 20% down can expect to get a $174,880 mortgage right around 5% with a principal and interest payment around $930 per month. This assumes that the borrower has relatively good credit and locks their rate in the prevailing market around May 15, 2010. That same house purchased on an FHA loan with 3% down leading to a balance of $207,670 should carry a rate of 5.03% and a principal and interest payment of $1115. The easy availability of FHA financing in Des Moines makes it an attractive market for borrowers with limited down payment funds, since one can obtain a loan with as little as 3.5% down. Given that FHA loans are available to borrowers with FICO scores as low as 620, this also makes Des Moines an area in which the vast majority of Americans can purchase a home.

Although obtaining a home loan in Iowa’s capital city is easier than in most other parts of the country, borrowers will still need to be prepared. They will need adequate income to purchase a home, and the ability to document it through W-2s and paystubs. Although it is possible to purchase a home with imperfect credit, actions to clean up credit blemishes can decrease one’s rate. Finally, one should be ready for the responsibilities and expenses of homeownership which range from paying property taxes to shoveling one’s own sidewalks in winter. If one is prepared, though, Des Moines remains one of the best places to get a mortgage and realize the American dream of homeownership.