Ames remains one of Iowa’s most resilient micro-markets thanks to Iowa State University’s 29,000 students and 6,400 staff who keep rental demand—and therefore home values—steady. Median sale prices rose 6.2% year-over-year to $252,000, yet the average 30-year fixed rate loan through NMHL still carries a principal-and-interest payment under $1,700 with 5% down. New construction is concentrated in the Somerset and University Heights subdivisions, where lots average 0.25 acres and builders like Jerry’s Homes and Kimberley Development offer $10,000 closing-cost incentives when buyers use preferred lenders such as NMHL.

Inventory sits at 1.9 months—technically a seller’s market—but buyers who pre-qualify for conventional, FHA, or VA can still negotiate inspection repairs and up to 3% seller credit toward closing. Cash offers represent only 14% of transactions, so financed buyers are very much in the game. If you’re house-hacking a duplex near Campustown, gross rents hover at $1,100 per side, covering 80% of the mortgage on a $280k purchase with 3.5% down FHA financing.

• Old Town Ames: Tree-lined streets, 1,400-sq-ft 1920s homes, walkable to Main Street coffee shops. Median $245k, taxes $4,000, feeds into Ames High—ranked top 3% statewide.
• Sawyer-Southwest: Newer builds (1990s-2000s), 3-bed ranches around $235k, quick access to US-30 for Des Moines commuters. HOA dues negligible, no Mello-Roos.
• Northridge Area: Split foyers built in the 1970s now trading at $195k-$210k after light renovations. Perfect for 203(k) renovation loans—roll $25k of new windows, HVAC, and kitchen into one low-rate mortgage.
• West Ames / Edwards Corridor: Higher price point ($300k-$375k) but top elementary test scores and 5-minute bike ride to Ada Hayden park trails.

NMHL’s NeighborhoodEdge program cuts 0.125% off your rate if the home is within Ames city limits and you complete a free one-hour Zoom seminar on sustainable homeownership hosted by ISU Extension.

The Iowa Finance Authority (IFA) offers two cornerstone programs for moderate-income buyers. FirstHome provides a 30-year fixed at 0.25% below conventional rates plus $2,500 toward closing; income limit for Story County is $99,400 for 1-2 persons and $114,310 for 3-plus households. Homes for Iowans expands eligibility to repeat buyers with slightly higher rates but no first-time requirement.

Citywide, Ames Community Development allocates about $300k annually for its HOME Program, granting up to $5,000 forgivable after five years of owner-occupancy. Combine that with NMHL’s 3% Grant—a true gift covering the entire 3% down on a 97% conventional loan—and many buyers bring just earnest money ($500) to closing. Veterans can stack the county’s $2,500 veterans’ credit on top, effectively walking away with cash back at the table.

Story County’s current levy is $11.19 per $1,000 of assessed value, and the city of Ames adds $9.60, but homestead, military, and disabled exemptions can trim the bill. On a $250k assessed home, the homestead credit saves about $315 annually, while the disabled veteran exemption wipes the entire tax if you’re 100% service-connected. NMHL projects your exact monthly escrow using the county’s Beacon database so you’re never short at tax time.

Buyers eyeing new construction should budget for special assessments—sewer, water, and street improvements can add $9,000-$14,000 spread over 10 years at 3% interest. Ask the builder for the Assessment Disclosure before signing; NMHL can roll the balance into your loan if the debt-to-income ratio still works under program guidelines.

Ames has an outsized share of freelancers—graphic designers for ISU athletics, agronomist consultants, and software developers working remotely for Des Moines startups. Because these borrowers often maximize Schedule C deductions, NMHL offers 12- or 24-month bank-statement programs that use gross deposits rather than taxable income. Qualify with as little as 10% down and credit scores starting at 620.

Another local favorite is the Asset Qualifier: if you have $250k in liquid assets post-closing, we can derive imputed income at 4% annually—enough to offset a shortfall on paper. Gig-economy drivers delivering for Hy-Vee Aisles Online can count 100% of 1099 income if you show 12 months of consistent deposits and maintain expense logs. Finally, ISU faculty on nine-month contracts can use future signed employment letters to bridge summer gaps; underwriters average the last two years of W-2s and treat deferred pay as continuing income.

Story County is home to roughly 4,200 veterans, many affiliated with the Iowa Army National Guard armory on Dayton Road and ISU’s ROTC department. The VA zero-down benefit covers purchases up to $726,200 in 2024 without PMI, and NMHL’s in-house VA team averages 18 days from contract to close. Surviving spouses can also use the benefit; we recently helped a widow buy a $195k ranch on Alexander Drive with only a $500 appraisal deposit.

VA Interest Rate Reduction Refinance Loans (IRRRL) are booming as rates have dipped; reduce your payment by $150-$200 without an appraisal or income docs if you’ve made six consecutive on-time payments. For vets with service-connected disability, the VA funding fee is waived—saving $5,000 on a $300k loan—and Iowa exempts military retirement pay from state income tax, boosting your qualifying income by roughly 3%.