Median household income: $62,369; value-to-income ratio 2.08. Mason City ranks 35 by home value and 17 by population among 42 places in our IA dataset.
What does an FHA loan cost on a typical Mason City home?
| Item | Mason City |
|---|---|
| Median home value (Census ACS) | $130,000 |
| Iowa median home value | $195,900 |
| Down payment (3.5%) | $4,550 |
| Loan incl. 1.75% upfront MIP | $127,645 |
| Estimated monthly payment (PITI + MI) | $1,189 |
| Income needed (28% / 36%) | $51,000 / $40,000 |
| Cerro Gordo County 2026 FHA limit (1 unit) | $541,287 |
| Max purchase price at the limit | $560,000 |
Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.
Payment includes Iowa's 1.43% effective property tax rate (Census ACS), $1,342/yr homeowners insurance (NAIC state average) and 0.55% annual FHA MIP.
What is the 2026 FHA loan limit in Mason City?
Mason City is in Cerro Gordo County where HUD's 2026 one-unit FHA limit is $541,287. With the minimum 3.5% down, that caps the purchase price at about $560,000; above that you'd need a bigger down payment or a conventional loan (conforming limit $832,750).
The Mason City median home value of $130,000 is 34% below the Iowa median, and within what the county limit supports.
Which down payment assistance programs can Mason City buyers use?
- Iowa Finance Authority 2nd Loan Program — Up to 5% of the home's sale price or appraised value (whichever is lower), with no maximum; deferred; state-level. Iowa Finance Authority · Verified October 23, 2026
- FirstHome Down Payment and Closing Costs Grant — $2,500 grant; grant; state-level. Iowa Finance Authority · Verified October 23, 2026
FHA loans in nearby cities
FHA loan FAQs for Mason City
Sources
- U.S. Census Bureau — ACS 2019–2023 5-Year Estimates
- HUD — 2026 FHA Forward Mortgage Limits (county file)
- HUD Single Family Housing Policy Handbook 4000.1
- NAIC — Homeowners Insurance Report, Data for 2023 (HO-3 average premium)
- Freddie Mac — Primary Mortgage Market Survey
- Iowa Finance Authority — Iowa Finance Authority 2nd Loan Program
- Iowa Finance Authority — FirstHome Down Payment and Closing Costs Grant
Data last updated October 23, 2026.
Get matched with FHA lenders in Mason City
Answer a few quick questions and get matched with purchase mortgage lenders in your area. Free, and it won't affect your credit score.
Get My MatchesFigures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.