The Average Cost to Buy a Home in Cedar Rapids
Are you moving to the Cedar Rapids area and entering the market to find your dream home? Here at Residential Mortgage Network, we have been offering residents of Cedar Rapids home loans since 1987, and are ready to lend some guidance!
A Little Background on Cedar Rapids Living
Cedar Rapids is the second-largest community in Iowa with a population of 133,174 citizens and 28 constituent neighborhoods, and several beautiful surrounding suburbs. The city and surrounding area has been on the rise over the last two decades and offers a variety of restaurants, art, family-friendly activities, and amazing jobs at over a dozen Fortune 500 companies making it one of the best places to live in Iowa, and the midwest.
How Much Does the Average Home Cost in Cedar Rapids?
If you’re looking at buying your first home or relocating, this might be the first question on your mind after learning a little bit about the city of five seasons. Cedar Rapids has many different affordable options including condos/townhomes, multi-families, and single-family homes.
According to Realtor.com, the median listing home price in Cedar Rapids is $156.5K as of November 2020. The average cost of homes in Cedar Rapids has had an upward trend of 4.3% annually and is listed as a buyer’s market. Downtown Cedar Rapids is the most expensive neighborhood, with a substantially higher median home price of $443K. Wellington heights has a median listing price of $90K, making it the most affordable neighborhood in Cedar Rapids.
Popular Loan Options In Cedar Rapids
Here at RMN, we work with many first-time home buyers and offer refinances, or help to finance a second home, and more. We offer several different loan options in the Cedar Rapids area and throughout the rest of Iowa, but two of the more popular home loans in the Cedar Rapids area are the HomeReady and Home Possible loans. Both HomeReady and Home Possible options are Conventional loans with only 3% down.
Fannie Mae HomeReady Loan
The HomeReady loan caters to lower-income individuals in the market to purchase a home, but don’t have a large amount of money saved up for a down payment. Through this loan, your minimum down payment will be less than 20% of the mortgage and you will pay private mortgage insurance. According to LendingTree.com, this option is ideal for you if you:
- Are a first-time or repeat buyer
- Have a credit score of 620+
- Have a limited amount of cash for a down payment (at least 3%)
- Earn a salary of less than or equal to 80% of the area median income
- Have supplemental income from a tenant
Freddie Mac Home Possible Loan
The Home Possible Loan is catered towards individuals with lower-income to moderate-income homebuyers who can afford at least a 3% down payment. Similar to the HomeReady Loan, the Home Possible Loan requires private mortgage insurance until your loan drops to 80% of the value of the home. According to LendingTree.com, this option is ideal for you if you:
- Have a limited amount of cash for a down payment
- Have a credit score of 660+
- Are first time or repeat homebuyers
- Want flexibility in down payment resources