Iowa

Closing costs in Iowa: what buyers and sellers pay

Iowa transfer tax is $340.80 on a $213,300 sale, and an ITG title certificate costs $175 flat, free for the owner with lender coverage. Line-by-line costs.

Checked on against the official sources listed at the bottom of the page.

In short

No official source gives a typical Iowa closing-cost percentage, so add the lines up. The state-set pieces are small: a transfer tax of $0.80 per $500 of price above $500 (Iowa Code § 428A.1), a flat $175 Iowa Title Guaranty certificate up to $750,000 (ITG rate sheet effective July 1, 2023), and county recording fees, $12 for a deed’s first page in Polk County. Lender charges, inspections and brokers’ fees are set by the providers.

Why is there no single “typical” total?

Some costs are fixed by a government body: the transfer tax, the recording fees and the title guaranty premium. Others are set by private companies: lender fees, appraisal, inspection, survey and brokerage compensation. Prorated property tax and escrow deposits depend on your tax bill and closing date.

Two federal forms show your own numbers. Your lender must give you a Loan Estimate within three business days of your application, and the Closing Disclosure at least three business days before closing (CFPB).

Line by line: what each cost is

Lender charges. For a loan on a one- or two-family home you will live in, Iowa Code § 535.8(4) caps the origination, processing and broker fee at 2% of the loan principal. Subsection 2 exempts some lenders whose points and fees stay within the federal limits it cites. Separate charges the lender may pass on, if disclosed, include credit reports, appraisal, attorney’s opinions, abstracting, county recorder’s fees, inspections, mortgage insurance, survey, termite inspection, the cost of an Iowa Finance Authority title guaranty, and a reasonable closing fee paid to a third party. Compare lenders on the Loan Estimate.

Title protection. Iowa has no private title insurance. Iowa Title Guaranty charges $175 up to $750,000 for lender-only, owner-only or both at once, plus $1 per $1,000 above $750,000. ITG says the owner’s certificate is free up to $750,000 when the lender gets coverage at the same time. A closing protection letter costs no additional premium. See title insurance in Iowa. The abstract and attorney’s opinion that support the guaranty are separate charges.

Transfer tax. $0.80 for each $500 or fraction above the first $500. The seller is liable by statute, and the contract can allocate it. See the transfer tax page.

Recording fees. The county recorder records the deed and mortgage. In Polk County, a deed costs $12 for the first page, a mortgage $7, and each added page $5. The deed fee includes a $5 transfer fee for each parcel. Statewide, § 331.604 sets a base of $5 per page plus $1 and $1 add-on fees per recorded transaction; counties publish their own schedules.

Groundwater hazard statement. The seller or the seller’s agent must sign one with the declaration of value (§ 558.69). It carries no fee in the sources read.

Attorney. Iowa’s title system relies on an attorney’s opinion. See real estate attorneys in Iowa. Fees are set by the attorney.

Prepaids and property tax. Property tax is billed in two halves, due before September 1 and March 1 (§ 445.36). Your closing agent prorates the current period. Lenders often add reserves to an escrow account. See Iowa property tax.

Brokerage. Compensation is negotiated, not set by law; see real estate commission.

What it costs: a worked example in Des Moines

This is an example, not a quote. It uses the Census Bureau’s 2024 median value for the city of Des Moines, $213,300, as the price. Only lines fixed by law, the county or ITG are computed.

LineRule usedAmount
Transfer tax (seller by statute)426 blocks of $500 × $0.80$340.80
Owner’s certificate, no lender coverageITG flat rate to $750,000$175
Owner’s certificate, lender coverage at the same timeITG: free to $750,000$0
Lender certificate (buyer’s loan)ITG flat rate$175
Recording the deed, 3 pages assumed$12 + 2 × $5, Polk County$22
Recording the mortgage, 15 pages assumed$7 + 14 × $5, Polk County$77
Lender fees, abstract, attorney, survey, inspectionSet by each providerSee your Loan Estimate
Tax proration and escrow depositsDepends on the bill and closing dateSee your Closing Disclosure

Whether a buyer or a seller pays each line is a matter of the contract. The sources read set the transfer tax liability on the seller and let lenders pass title-guaranty costs to the borrower on owner-occupied one- and two-family loans. At a different price or in a different county, recompute.

Frequently asked questions

Does Iowa have a transfer tax on home sales?

Yes: $0.80 for each $500 of price above $500, or $1.60 per $1,000. The seller is liable by statute (Iowa Code §§ 428A.1, 428A.3).

How much is title protection in Iowa?

Iowa Title Guaranty’s rate sheet lists $175 flat up to $750,000. The owner’s certificate is free up to $750,000 when the lender’s certificate is issued at the same time, according to ITG.

Why is there no title insurance in Iowa?

Section 515.48(10) bars it. Iowa uses an attorney’s title opinion with an optional state guaranty from ITG.

How much does the Polk County Recorder charge to record a deed?

$12 for the first page and $5 for each additional page, including a $5 transfer fee per parcel, per the recorder’s fee table.

When will I know my exact closing costs?

Your lender must send a Loan Estimate within three business days of your application. You must receive the Closing Disclosure at least three business days before closing.

Compare with the other states: Closing costs by state.

More Iowa guides

Sources

Iowa · All states · Federal guides