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$510,400$653,550$789,950$981,700
ADAMSNON-METRO$510,400$653,550$789,950$981,700
ALLAMAKEENON-METRO$510,400$653,550$789,950$981,700
APPANOOSENON-METRO$510,400$653,550$789,950$981,700
AUDUBONNON-METRO$510,400$653,550$789,950$981,700
BENTONCEDAR RAPIDS, IA$510,400$653,550$789,950$981,700
BLACK HAWKWATERLOO-CEDAR FALLS, IA$510,400$653,550$789,950$981,700
BOONEAMES, IA$510,400$653,550$789,950$981,700
BREMERWATERLOO-CEDAR FALLS, IA$510,400$653,550$789,950$981,700
BUCHANANNON-METRO$510,400$653,550$789,950$981,700
BUENA VISTASTORM LAKE, IA$510,400$653,550$789,950$981,700
BUTLERNON-METRO$510,400$653,550$789,950$981,700
CALHOUNNON-METRO$510,400$653,550$789,950$981,700
CARROLLCARROLL, IA$510,400$653,550$789,950$981,700
CASSNON-METRO$510,400$653,550$789,950$981,700
CEDARNON-METRO$510,400$653,550$789,950$981,700
CERRO GORDOMASON CITY, IA$510,400$653,550$789,950$981,700
CHEROKEENON-METRO$510,400$653,550$789,950$981,700
CHICKASAWNON-METRO$510,400$653,550$789,950$981,700
CLARKENON-METRO$510,400$653,550$789,950$981,700
CLAYSPENCER, IA$510,400$653,550$789,950$981,700
CLAYTONNON-METRO$510,400$653,550$789,950$981,700
CLINTONCLINTON, IA$510,400$653,550$789,950$981,700
CRAWFORDNON-METRO$510,400$653,550$789,950$981,700
DALLASDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
DAVISNON-METRO$510,400$653,550$789,950$981,700
DECATURNON-METRO$510,400$653,550$789,950$981,700
DELAWARENON-METRO$510,400$653,550$789,950$981,700
DES MOINESBURLINGTON, IA-IL$510,400$653,550$789,950$981,700
DICKINSONSPIRIT LAKE, IA$510,400$653,550$789,950$981,700
DUBUQUEDUBUQUE, IA$510,400$653,550$789,950$981,700
EMMETNON-METRO$510,400$653,550$789,950$981,700
FAYETTENON-METRO$510,400$653,550$789,950$981,700
FLOYDNON-METRO$510,400$653,550$789,950$981,700
FRANKLINNON-METRO$510,400$653,550$789,950$981,700
FREMONTNON-METRO$510,400$653,550$789,950$981,700
GREENENON-METRO$510,400$653,550$789,950$981,700
GRUNDYWATERLOO-CEDAR FALLS, IA$510,400$653,550$789,950$981,700
GUTHRIEDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
HAMILTONNON-METRO$510,400$653,550$789,950$981,700
HANCOCKNON-METRO$510,400$653,550$789,950$981,700
HARDINNON-METRO$510,400$653,550$789,950$981,700
HARRISONOMAHA-COUNCIL BLUFFS, NE-IA$510,400$653,550$789,950$981,700
HENRYNON-METRO$510,400$653,550$789,950$981,700
HOWARDNON-METRO$510,400$653,550$789,950$981,700
HUMBOLDTNON-METRO$510,400$653,550$789,950$981,700
IDANON-METRO$510,400$653,550$789,950$981,700
IOWANON-METRO$510,400$653,550$789,950$981,700
JACKSONNON-METRO$510,400$653,550$789,950$981,700
JASPERDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
JEFFERSONFAIRFIELD, IA$510,400$653,550$789,950$981,700
JOHNSONIOWA CITY, IA$510,400$653,550$789,950$981,700
JONESCEDAR RAPIDS, IA$510,400$653,550$789,950$981,700
KEOKUKNON-METRO$510,400$653,550$789,950$981,700
KOSSUTHNON-METRO$510,400$653,550$789,950$981,700
LEEFORT MADISON-KEOKUK, IA-IL-MO$510,400$653,550$789,950$981,700
LINNCEDAR RAPIDS, IA$510,400$653,550$789,950$981,700
LOUISANON-METRO$510,400$653,550$789,950$981,700
LUCASNON-METRO$510,400$653,550$789,950$981,700
LYONNON-METRO$510,400$653,550$789,950$981,700
MADISONDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
MAHASKAOSKALOOSA, IA$510,400$653,550$789,950$981,700
MARIONPELLA, IA$510,400$653,550$789,950$981,700
MARSHALLMARSHALLTOWN, IA$510,400$653,550$789,950$981,700
MILLSOMAHA-COUNCIL BLUFFS, NE-IA$510,400$653,550$789,950$981,700
MITCHELLNON-METRO$510,400$653,550$789,950$981,700
MONONANON-METRO$510,400$653,550$789,950$981,700
MONROENON-METRO$510,400$653,550$789,950$981,700
MONTGOMERYNON-METRO$510,400$653,550$789,950$981,700
MUSCATINEMUSCATINE, IA$510,400$653,550$789,950$981,700
O'BRIENNON-METRO$510,400$653,550$789,950$981,700
OSCEOLANON-METRO$510,400$653,550$789,950$981,700
PAGENON-METRO$510,400$653,550$789,950$981,700
PALO ALTONON-METRO$510,400$653,550$789,950$981,700
PLYMOUTHNON-METRO$510,400$653,550$789,950$981,700
POCAHONTASNON-METRO$510,400$653,550$789,950$981,700
POLKDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
POTTAWATTAMIEOMAHA-COUNCIL BLUFFS, NE-IA$510,400$653,550$789,950$981,700
POWESHIEKNON-METRO$510,400$653,550$789,950$981,700
RINGGOLDNON-METRO$510,400$653,550$789,950$981,700
SACNON-METRO$510,400$653,550$789,950$981,700
SCOTTDAVENPORT-MOLINE-ROCK ISLAND, IA-IL$510,400$653,550$789,950$981,700
SHELBYNON-METRO$510,400$653,550$789,950$981,700
SIOUXNON-METRO$510,400$653,550$789,950$981,700
STORYAMES, IA$510,400$653,550$789,950$981,700
TAMANON-METRO$510,400$653,550$789,950$981,700
TAYLORNON-METRO$510,400$653,550$789,950$981,700
UNIONNON-METRO$510,400$653,550$789,950$981,700
VAN BURENNON-METRO$510,400$653,550$789,950$981,700
WAPELLOOTTUMWA, IA$510,400$653,550$789,950$981,700
WARRENDES MOINES-WEST DES MOINES, IA$510,400$653,550$789,950$981,700
WASHINGTONIOWA CITY, IA$510,400$653,550$789,950$981,700
WAYNENON-METRO$510,400$653,550$789,950$981,700
WEBSTERFORT DODGE, IA$510,400$653,550$789,950$981,700
WINNEBAGONON-METRO$510,400$653,550$789,950$981,700
WINNESHIEKNON-METRO$510,400$653,550$789,950$981,700
WOODBURYSIOUX CITY, IA-NE-SD$510,400$653,550$789,950$981,700
WORTHMASON CITY, IA$510,400$653,550$789,950$981,700
WRIGHTNON-METRO$510,400$653,550$789,950$981,700

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:

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