Iowa, originally acquired in the Louisiana Purchase, is a state located in the American Heartland. It has seen its largely agricultural economy develop into a diversified modern economy that spans financial services and insurance, advanced manufacturing, biotechnology, renewable energy, and a wide range of service industries. The capital and largest city is Des Moines. Iowa is the birthplace of actors Elijah Wood and Ashton Kutcher, as well as President Herbert Hoover.

Iowa has roughly 3.2 million residents, making it one of the nation's less populous states, and it ranks 26th largest by area. While Iowa is often associated with farming, agriculture is only one part of a broad economy that also leans heavily on finance and insurance, manufacturing, and one of the nation's largest wind-energy sectors. This diversity has historically helped the state maintain a relatively low unemployment rate.

Places to Live in IA

The typical home value in Iowa is around $240,000, according to Zillow, though prices vary widely by region. Iowa is known for its relatively affordable housing compared with the national median. A meaningful share of the state's real estate market is undeveloped and rural land, which can be well suited to a home loan from the United States Department of Agriculture, also known as a USDA loan. We'll cover that in more detail later on.

Some of the most expensive places to live in IA are Des Moines suburbs such as Waukee, Clive, and Urbandale, along with parts of the Iowa City area, where home prices tend to run well above the state average. More affordable markets include cities like Waterloo and Sioux City. Iowa cities regularly rank well in national studies of cost of living, quality of life, and best places to live.

Des Moines

Des Moines has an estimated population of about 212,000, making it Iowa's largest city.

Des Moines frequently places highly on national lists of the best places to live and to do business. The capital of IA, it is a major hub for the insurance and financial services industries, and companies such as Principal Financial Group, Nationwide, and Wells Fargo are among the area's top employers.

Cedar Rapids

Cedar Rapids has an estimated population of about 137,000, making it Iowa's second-largest city.

Located on the Cedar River, Cedar Rapids, IA, is also called the City of Five Seasons. The city is full of interesting cultural attractions, including a museum of art, a Czech and Slovak museum (the city has a large Czech heritage), and the Paramount Theatre, which is listed on the US National Register of Historic Places. Among the top employers are Collins Aerospace (an RTX company, formerly Rockwell Collins), UnityPoint Health-St. Luke's Hospital, and Hy-Vee.

Davenport

Davenport has an estimated population of about 101,000, making it Iowa's third-largest city and the largest of the Quad Cities.

There are quite a few cities in the US named Davenport, but the one located in Iowa is the largest. Davenport sits on IA's border with Illinois, roughly halfway between Chicago and Des Moines. The area has a strong manufacturing base, and companies such as John Deere have a major local presence. Davenport is also home to Von Maur and Lee Enterprises, two businesses that are well known in the Midwest.

Banking Options

If you decide to relocate to Iowa, one important step will be taking care of your banking needs. If you're already a resident of this midwestern state, you may be able to get a better deal on your checking account and other financial products if you shop around. With that in mind, we've compiled the following information about your banking options in the state.

Banks headquartered in IA:

  1. Principal Bank
  2. Bankers Trust Company
  3. Bank Iowa
  4. Hills Bank and Trust Company

Some of the largest credit unions serving Iowa:

  1. GreenState (formerly University of Iowa Community)
  2. Veridian
  3. Dupaco Community
  4. Collins Community
  5. DuTrac Community
  6. Community 1st
  7. Greater Iowa
  8. Ascentra
  9. Linn Area

National banks that have local branches:

  1. U.S. Bank
  2. Wells Fargo
  3. BMO Bank (formerly BMO Harris)
  4. Chase

Home Finance in Iowa

For those looking for competitive bank rates in Des Moines, or to refinance or purchase a home or car in Iowa, search RateZip.com to compare current rates from multiple lenders. Since buying your home is likely the largest financial transaction you'll ever undertake, we'll provide tips on finding the right mortgage in Iowa.

First-time buyers should also look into the Iowa Finance Authority (IFA), the state's housing finance agency. Its FirstHome program connects eligible first-time buyers with affordable, fixed-rate mortgages, and the companion FirstHome Plus option can provide down payment and closing-cost assistance. The IFA also offers the Homes for Iowans program for repeat buyers. Eligibility depends on income and purchase-price limits that vary by county, so check the current guidelines before you apply.

USDA Home Loans

As mentioned above, USDA loans are backed by the Department of Agriculture to help buyers purchase homes in eligible rural areas. If you're considering buying in rural IA, this may be a good option for you. Here are a few ways that USDA mortgages stand out:

  1. Finance up to 100% of the purchase price, meaning little or no down payment may be required
  2. Household income must fall under a set maximum for the area
  3. The home must be located in a USDA-designated eligible area
  4. The property must be used as a primary residence