Des Moines remains one of America’s last affordable capital cities, yet the window is shrinking. Median sale prices jumped 6.8 % year-over-year to $210,000, while active listings fell to a 13-year low of 780 homes. Multiple-offer situations now touch 42 % of all sales, up from 28 % in 2022, and the average list-to-sale ratio stands at 99.4 %. Neighborhoods closest to the Western Gateway tech corridor—think Sherman Hill, East Village, and Waterbury—saw 9–11 % appreciation, outpacing suburban Waukee for the first time since 2015.

Inventory by price band:

• Under $200k: 11 days on market, 1.2-month supply—cash investors and FHA buyers collide here.
• $200k–$300k: 19 DOM, 1.8-month supply; conventional 5 % down prevails.
• $300k–$450k: 27 DOM, 2.4-month supply; new construction dominates Ankeny and Waukee.

Interest-rate buy-downs have become the norm: NMHL’s 2-1 temporary buy-down costs sellers about 2.1 % of price but saves buyers $315/month on a $300k loan, often the sweetener that wins the bid in a market where 31 % of accepted offers still include seller concessions.

Iowa’s patchwork of grants and below-market bonds can chop thousands off your cash-to-close. Start with the Iowa Finance Authority (IFA) FirstHome program: income under $96,800 for a 2-person household, minimum 640 score, and you can combine a 3.5 % FHA down-payment grant with a 0.50 % below-market rate. IFA’s Homes for Iowans removes the first-time-buyer rule, so move-up buyers can still secure 30-year fixed rates 0.375 % below conventional.

Des Moines-specific help includes:

• Polk County JumpStart: $10,000 forgivable after 5 years for purchases in 50314, 50315, 50316, and 50317.
• City of Des Moines HOME funds: $14,900 for households earning ≤50 % AMI; can layer with IFA.
• Community Foundation of Greater Des Moines: $5,000 for teachers, EMTs, and veterans buying within city limits.

NMHL is an IFA Participating Lender, so we frontload eligibility checks, reserve funds in March when the allocation drops, and pair grants with our 1 % lender-paid down-payment program so many borrowers close with less than $500 out-of-pocket.

Beaverdale: Brick Tudor 3-bedrooms hover at $215k, 5-minute drive to MercyOne and the hip shops on Beaver Ave. School district: Hoover High, rated 8/10 by GreatSchools, keeps resale demand strong—homes appreciated 5.2 % last year vs. 3.9 % countywide.

Sherman Hill: Victorian condos and new infill townhomes. Median $248k, walkable to the Sculpture Park and 6th Street entertainment. Expect HOA fees ($120–$220) but property taxes dip thanks to historic-tax abatements. Perfect for young professionals using conventional 5 % down.

Waveland Woods / Westwood: Tree-lined 1960s ramblers, $235k–$275k. Top-rated Hanawalt Elementary pushes families here; inventory moves in 12 days. Note: higher sewer assessments from the upcoming 12th Street pump-station upgrade—budget an extra $38/month.

Valley Junction (West Des Moines): Bungalows and new craftsman builds, $225k–$350k. Historic retail core hosts farmers’ market every Thursday; 17-minute bike trail to Jordan Creek Mall. Good option for self-employed buyers who want small-town vibe with metro amenities.

East Village: Loft condos above $300k, 1,100 sq ft average. Parking deeded separately—factor $18k. Strong Airbnb potential (city allows short-term rentals with $250 permit) but HOA restrictions cap leases to 30-day minimums.

Polk County’s assessed value equals 2023 market roll-back value; residential assessment ratio is 55.7 %. Multiply that by the consolidated levy—ranging from $38.42 to $43.10 per $1,000—and you get effective tax rates of 1.95–2.18 %. On a $210k Beaverdale home, annual taxes are roughly $4,070, or $339/month with homestead credit applied.

Common surcharges:

• Sewer replacement fee: $6.90/month citywide, rising to $9.40 in 2026.
• Local-option sales-tax rebate bond: up to $85/year for properties within downtown CID.
• Street lighting: $27/year in select neighborhoods like River Bend.

Buyers in Windsor Heights pay an extra 0.9 % city utility franchise fee—about $76 annually—while those in unincorporated Polk County avoid the $1.25/month solid-waste fee. NMHL’s loan-estimate calculator breaks these line items by exact address so your escrow isn’t blindsided at closing.

Finally, Iowa’s homestead credit knocks $4,850 off assessed value; you must file by July 1 of your purchase year. Veterans receive an additional $2,000 assessment exemption, worth about $95/year in tax savings.

Greater Des Moines is surrounded by eligible USDA rural territory: north of Hwy 141, west of I-35, and most of Dallas County including Waukee, Granger, and Adel. USDA still offers 0 % down, 100 % financing, and the upfront guarantee fee dropped to 1 % this year—meaning a $250k home costs only $2,500 in financed fees versus $8,750 for FHA upfront MIP.

VA loans cover all of Polk, Warren, and Dallas counties. Disabled veterans rated 10 % or more are exempt from the VA funding fee entirely. NMHL’s VA IRRRL (streamline) closes in 10 days and requires no appraisal—ideal for homeowners who bought at 3 % and want to drop their rate without re-qualifying.

Credit-challenged buyers aren’t left out. NMHL’s Fresh-Start Program overlays FHA guidelines and allows:

• Non-traditional credit (utility & rent histories) for borrowers without scores.
• Collection accounts up to $2,000 total can remain unpaid.
• BK discharge after 12 months with re-established credit.

We also keep portfolio loans on the books: 20 % down, 640 score, DTI to 50 %—useful for self-employed barbers, Uber drivers, and farmers who write off depreciation.

Finally, if you’re coming out of a foreclosure, Iowa’s redemption period is only 6 months (20 months for ag land). NMHL can pre-approve you for FHA as soon as your CAIVRS clears, often 12 months after the sheriff’s deed records.

Big banks treat Des Moines like a fly-over market; we underwrite right here on 62nd & Hickman. That means:

• Same-day pre-approvals—pull your credit at 9 a.m., letter in your inbox by lunch.
• Local appraisal panel—no 3-week delays waiting for an out-of-state appraiser who thinks Beaverdale comps with Beavercreek, Ohio.
• Down-payment-assistance concierge—our processor files IFA, JumpStart, and HOME paperwork so you don’t miss grant deadlines.

We close purchase loans in 17 days average—critical in a market where sellers weigh offers by closing speed almost as much as price. Our Lock-and-Look lets you secure today’s rate for 90 days while you shop, and if rates drop, you float down once at no charge.

From bad-credit FHA in Capitol East to jumbo construction-perm in Clive, NMHL has helped 1,847 Des Moines families become homeowners since 2018. Ready to join them? Apply online or call a Des Moines loan officer at (515) 555-LOAN and get real numbers in under 15 minutes.