What are Conventional Loans and Conforming Loans?

By definition, a Conventional Loan is any mortgage that’s not guaranteed or insured by the federal government. Iowa conventional loans may be either “conforming” and “non-conforming”, although ‘conventional loans’ generally refer to ‘conforming loans’. Therefore Iowa conventional loan limits are the same thing as Iowa conforming loan limits.

Iowa Conventional Loan Limits

What is the maximum amount that I can borrow?

Conventional loan limits in Iowa are determined by:

  • Iowa Conventional Loan LimitsMaximum LTV Ratio:  The maximum financing loan-to-value ratio for conventional mortgages is 80% – 97% of the appraised value of the home or its selling price, whichever is lower. Learn how to calculate loan-to-value.
  • Maximum Loan Amount: Conventional loan limits in Iowa are set at the floor amount of $424,100 across the entire state. Metro areas in IA with a conforming limit of $424,100 include Des Moines, Cedar Rapids, Davenport and Sioux City.

Search all Conventional Loan Limits in Iowa:

County Name
Area
1-Unit
2-Unit
3-Unit
4-Unit
ADAIRNON-METRO$424,100$543,000$656,350$815,650
ADAMSNON-METRO$424,100$543,000$656,350$815,650
ALLAMAKEENON-METRO$424,100$543,000$656,350$815,650
APPANOOSENON-METRO$424,100$543,000$656,350$815,650
AUDUBONNON-METRO$424,100$543,000$656,350$815,650
BENTONCEDAR RAPIDS, IA$424,100$543,000$656,350$815,650
BLACK HAWKWATERLOO-CEDAR FALLS, IA$424,100$543,000$656,350$815,650
BOONEBOONE, IA$424,100$543,000$656,350$815,650
BREMERWATERLOO-CEDAR FALLS, IA$424,100$543,000$656,350$815,650
BUCHANANNON-METRO$424,100$543,000$656,350$815,650
BUENA VISTASTORM LAKE, IA$424,100$543,000$656,350$815,650
BUTLERNON-METRO$424,100$543,000$656,350$815,650
CALHOUNNON-METRO$424,100$543,000$656,350$815,650
CARROLLNON-METRO$424,100$543,000$656,350$815,650
CASSNON-METRO$424,100$543,000$656,350$815,650
CEDARNON-METRO$424,100$543,000$656,350$815,650
CERRO GORDOMASON CITY, IA$424,100$543,000$656,350$815,650
CHEROKEENON-METRO$424,100$543,000$656,350$815,650
CHICKASAWNON-METRO$424,100$543,000$656,350$815,650
CLARKENON-METRO$424,100$543,000$656,350$815,650
CLAYSPENCER, IA$424,100$543,000$656,350$815,650
CLAYTONNON-METRO$424,100$543,000$656,350$815,650
CLINTONCLINTON, IA$424,100$543,000$656,350$815,650
CRAWFORDNON-METRO$424,100$543,000$656,350$815,650
DALLASDES MOINES-WEST DES MOINES, IA$424,100$543,000$656,350$815,650
DAVISOTTUMWA, IA$424,100$543,000$656,350$815,650
DECATURNON-METRO$424,100$543,000$656,350$815,650
DELAWARENON-METRO$424,100$543,000$656,350$815,650
DES MOINESBURLINGTON, IA-IL$424,100$543,000$656,350$815,650
DICKINSONSPIRIT LAKE, IA$424,100$543,000$656,350$815,650
DUBUQUEDUBUQUE, IA$424,100$543,000$656,350$815,650
EMMETNON-METRO$424,100$543,000$656,350$815,650
FAYETTENON-METRO$424,100$543,000$656,350$815,650
FLOYDNON-METRO$424,100$543,000$656,350$815,650
FRANKLINNON-METRO$424,100$543,000$656,350$815,650
FREMONTNON-METRO$424,100$543,000$656,350$815,650
GREENENON-METRO$424,100$543,000$656,350$815,650
GRUNDYWATERLOO-CEDAR FALLS, IA$424,100$543,000$656,350$815,650
GUTHRIEDES MOINES-WEST DES MOINES, IA$424,100$543,000$656,350$815,650
HAMILTONNON-METRO$424,100$543,000$656,350$815,650
HANCOCKNON-METRO$424,100$543,000$656,350$815,650
HARDINNON-METRO$424,100$543,000$656,350$815,650
HARRISONOMAHA-COUNCIL BLUFFS, NE-IA$424,100$543,000$656,350$815,650
HENRYNON-METRO$424,100$543,000$656,350$815,650
HOWARDNON-METRO$424,100$543,000$656,350$815,650
HUMBOLDTNON-METRO$424,100$543,000$656,350$815,650
IDANON-METRO$424,100$543,000$656,350$815,650
IOWANON-METRO$424,100$543,000$656,350$815,650
JACKSONNON-METRO$424,100$543,000$656,350$815,650
JASPERNEWTON, IA$424,100$543,000$656,350$815,650
JEFFERSONFAIRFIELD, IA$424,100$543,000$656,350$815,650
JOHNSONIOWA CITY, IA$424,100$543,000$656,350$815,650
JONESCEDAR RAPIDS, IA$424,100$543,000$656,350$815,650
KEOKUKNON-METRO$424,100$543,000$656,350$815,650
KOSSUTHNON-METRO$424,100$543,000$656,350$815,650
LEEFORT MADISON-KEOKUK, IA-IL-MO$424,100$543,000$656,350$815,650
LINNCEDAR RAPIDS, IA$424,100$543,000$656,350$815,650
LOUISANON-METRO$424,100$543,000$656,350$815,650
LUCASNON-METRO$424,100$543,000$656,350$815,650
LYONNON-METRO$424,100$543,000$656,350$815,650
MADISONDES MOINES-WEST DES MOINES, IA$424,100$543,000$656,350$815,650
MAHASKAOSKALOOSA, IA$424,100$543,000$656,350$815,650
MARIONNON-METRO$424,100$543,000$656,350$815,650
MARSHALLMARSHALLTOWN, IA$424,100$543,000$656,350$815,650
MILLSOMAHA-COUNCIL BLUFFS, NE-IA$424,100$543,000$656,350$815,650
MITCHELLNON-METRO$424,100$543,000$656,350$815,650
MONONANON-METRO$424,100$543,000$656,350$815,650
MONROENON-METRO$424,100$543,000$656,350$815,650
MONTGOMERYNON-METRO$424,100$543,000$656,350$815,650
MUSCATINEMUSCATINE, IA$424,100$543,000$656,350$815,650
O'BRIENNON-METRO$424,100$543,000$656,350$815,650
OSCEOLANON-METRO$424,100$543,000$656,350$815,650
PAGENON-METRO$424,100$543,000$656,350$815,650
PALO ALTONON-METRO$424,100$543,000$656,350$815,650
PLYMOUTHSIOUX CITY, IA-NE-SD$424,100$543,000$656,350$815,650
POCAHONTASNON-METRO$424,100$543,000$656,350$815,650
POLKDES MOINES-WEST DES MOINES, IA$424,100$543,000$656,350$815,650
POTTAWATTAMIEOMAHA-COUNCIL BLUFFS, NE-IA$424,100$543,000$656,350$815,650
POWESHIEKNON-METRO$424,100$543,000$656,350$815,650
RINGGOLDNON-METRO$424,100$543,000$656,350$815,650
SACNON-METRO$424,100$543,000$656,350$815,650
SCOTTDAVENPORT-MOLINE-ROCK ISLAND, IA-IL$424,100$543,000$656,350$815,650
SHELBYNON-METRO$424,100$543,000$656,350$815,650
SIOUXNON-METRO$424,100$543,000$656,350$815,650
STORYAMES, IA$424,100$543,000$656,350$815,650
TAMANON-METRO$424,100$543,000$656,350$815,650
TAYLORNON-METRO$424,100$543,000$656,350$815,650
UNIONNON-METRO$424,100$543,000$656,350$815,650
VAN BURENNON-METRO$424,100$543,000$656,350$815,650
WAPELLOOTTUMWA, IA$424,100$543,000$656,350$815,650
WARRENDES MOINES-WEST DES MOINES, IA$424,100$543,000$656,350$815,650
WASHINGTONIOWA CITY, IA$424,100$543,000$656,350$815,650
WAYNENON-METRO$424,100$543,000$656,350$815,650
WEBSTERFORT DODGE, IA$424,100$543,000$656,350$815,650
WINNEBAGONON-METRO$424,100$543,000$656,350$815,650
WINNESHIEKNON-METRO$424,100$543,000$656,350$815,650
WOODBURYSIOUX CITY, IA-NE-SD$424,100$543,000$656,350$815,650
WORTHMASON CITY, IA$424,100$543,000$656,350$815,650
WRIGHTNON-METRO$424,100$543,000$656,350$815,650

Iowa conforming limits can change anytime. Check back often to ensure accuracy.

What factors determine if i’m eligible for a Conventional Loan in Iowa?

Conventional conforming loans follow the terms and conditions set forth by government sponsored enterprises (GSE’s) like Fannie Mae or Freddie Mac. To be eligible for a Conforming Loan in Iowa, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. A FICO credit score of 620 or above is generally required to obtain a conventional loan approval. You must also have enough income to pay your housing costs plus all additional monthly debt.

How much money will I need for the down payment and closing costs?

Conventional home loans require the home buyer to invest between 3% and 20% of the sales price towards the down payment and closing costs. If the sales price is $100,000 for example, the mortgage applicant must invest at least $3,000 – $20,000 to meet conventional mortgage down payment requirements, depending on the program.

Minimum Iowa Conventional Loan Down Payment:

Residence UsageFixed-Rate Mortgage (FRM)Adjustable-Rate Mortgage (ARM)
1 Unit Primary3% Down Payment10% Down Payment
2 Units Primary15% Down Payment25% Down Payment
3 Units Primary25% Down Payment35% Down Payment
4 Units Primary25% Down Payment35% Down Payment
1 Unit Second Home10% Down Payment20% Down Payment
1 Unit Investment15% Down Payment25% Down Payment
2 Units Investment25% Down Payment35% Down Payment
3 Units Investment25% Down Payment35% Down Payment
4 Units Investment25% Down Payment35% Down Payment

What property types are allowed for Conventional Conforming Mortgages?

IA conventional loan guidelinesConventional mortgage guidelines allow you to purchase
warrantable condos, planned unit developments, modular homes, manufactured homes, and 1-4 family residences. Conventional loans can be used to finance primary residences, second homes and investment property.

Learn more about conventional mortgages.

What types of mortgage and refinance programs do Conventional Loans offer in Iowa?

There are several varieties of standard home purchase, first-time home buyer and conventional refinance loans available in Iowa:

  • Conventional Purchase Loans – Conventional loans offer a variety of programs for applicants with good credit ratings to buy a home. Both 3% down mortgage and 5% down mortgage options are available, however 20% down is the minimum amount required to avoid private mortgage insurance.
  • Conventional Rate/Term Refinance: Conventional Rate/Term refinancing loans are for borrowers who currently have an FHA, VA, USDA or conventional fixed rate mortgage or ARM loan and wish to refinance into a conventional mortgage with a lower interest rate. If you’re a homeowners considering a stable, conventional fixed-rate mortgage, this program may also eliminate your mortgage insurance if you have at 20% equity in your home.  If not, Conventional 97% loan programs may also work for you.
  • Cash-Out Refinance: A Conventional Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

What factors determine if I am eligible for a Conventional Refinance Loan?

To meet conventional refinance mortgage requirements in Iowa, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be considered. You must be able to cover closing costs and have enough income to pay your monthly debt.

Conventional Loan Requirements

More Iowa Mortgage Limits

You may also want to visit these additional home loan resources before deciding on a mortgage program:

Get Your Rate Quote
Refinance     Purchase

As seen in: