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Mortgage & Financing Guide Des Moines | Home Loan Options Iowa | Smart Move DSM
💰 Mortgage Guide

Mortgage & Financing Made Simple

Understanding your financing options is the first step to homeownership. I'll connect you with trusted local lenders and help you navigate the mortgage process with confidence.

3% Min Down Payment
580 Min Credit (FHA)
0% VA/USDA Down
Loan Types Available
CONV
Conventional 3-20% down, 620+ credit
FHA
FHA Loan 3.5% down, 580+ credit
VA
VA Loan 0% down, veterans only
USDA
USDA Loan 0% down, rural areas
Loan Options

Compare Mortgage Types

Each loan program has different requirements and benefits. Here's what you need to know about each option available in Iowa.

CONV

Conventional Loan

Not government-backed

The most common loan type. Offers competitive rates for borrowers with good credit. PMI required if down payment is less than 20%, but can be removed once you reach 20% equity.

3-20% Down Payment
620+ Credit Score
43% Max DTI
Yes* PMI Required
FHA

FHA Loan

Government-insured

Great for first-time buyers or those with lower credit. More forgiving qualification requirements. Requires mortgage insurance for the life of the loan (unless you refinance later).

3.5% Down Payment
580+ Credit Score
50% Max DTI
Yes MIP Required
VA

VA Loan

For veterans & military

Excellent benefit for those who've served. No down payment required, no PMI, and competitive rates. One-time VA funding fee can be rolled into the loan amount.

0% Down Payment
None* Credit Score
41% Max DTI
No PMI Required
USDA

USDA Loan

Rural development

Zero down payment option for eligible rural and suburban areas. Many Des Moines suburbs qualify! Income limits apply. Great option often overlooked by buyers.

0% Down Payment
640+ Credit Score
41% Max DTI
Low Guarantee Fee
Iowa Programs

Down Payment Assistance

Iowa has excellent programs to help buyers with down payment and closing costs. I'll connect you with lenders who specialize in these programs.

  • IFA FirstHome $2,500 grant for first-time buyers. No repayment required.
  • Homes for Iowans Up to 5% down payment assistance with reduced interest rates.
  • Military Homeownership $5,000 grant for veterans and active military. Stackable with VA loan.
  • Mortgage Credit Certificate Federal tax credit of 25% of mortgage interest paid annually.

Down Payment Comparison

Conventional
20%
FHA
3.5%
VA
0%
USDA
0%

*Conventional can go as low as 3% with PMI. VA/USDA require eligibility.

Get Started

The Pre-Approval Process

Pre-approval shows sellers you're serious and tells you exactly what you can afford. Here's how it works.

1

Gather Documents

Collect pay stubs, tax returns, bank statements, and ID. Having these ready speeds up the process significantly.

2

Apply with Lender

Submit your application and documents. The lender runs credit check and verifies your income and assets.

3

Get Your Letter

Receive pre-approval letter stating your approved loan amount. Valid for 60-90 days. Now you're ready to shop!

Be Prepared

Documents You'll Need

Having these ready before your lender appointment speeds up pre-approval and shows you're a serious buyer.

Pay Stubs

Last 30 days

W-2 Forms

Past 2 years

Tax Returns

Past 2 years

Bank Statements

2-3 months

Photo ID

Driver's license

Social Security

SSN card or number

Employment Info

Employer contact

Gift Letter

If using gift funds

Understanding Rates

What Affects Your Interest Rate

Several factors determine the rate you'll receive. Understanding these helps you get the best deal.

Credit Score

Higher scores qualify for better rates. A 740+ score gets the best rates, while scores below 680 may face higher rates or additional requirements.

Down Payment

Larger down payments often mean better rates. 20% down eliminates PMI and typically qualifies you for preferred pricing.

Loan Term

15-year loans have lower rates than 30-year loans. Shorter terms mean faster payoff but higher monthly payments.

Property Type

Primary residences get the best rates. Investment properties and second homes typically have higher rates due to increased risk.

Debt-to-Income

Lower DTI ratios indicate less financial risk. Keeping total monthly debts below 36% of income helps secure better rates.

Market Conditions

Rates fluctuate daily based on economic factors. Lock in your rate when you find a good one—timing can save thousands.

Common Questions

Mortgage & Financing FAQs

Credit score requirements vary by loan type: Conventional loans typically require 620+, FHA loans can go as low as 580 (or 500 with 10% down), VA loans have no minimum but lenders typically want 620+, and USDA loans require 640+. Higher scores get better interest rates—a 740+ score qualifies you for the best rates available.
Pre-qualification is an informal estimate based on self-reported information—useful for initial budgeting but not verified. Pre-approval involves document verification, credit check, and underwriter review, resulting in a commitment letter showing the exact amount you can borrow. Sellers take pre-approval letters seriously; pre-qualification letters carry little weight.
Down payment requirements vary: Conventional loans require 3-20% (with PMI under 20%), FHA loans require 3.5% minimum, VA loans offer 0% down for eligible veterans, and USDA loans offer 0% down in eligible rural areas. Iowa also has down payment assistance programs through Iowa Finance Authority that can cover 2.5-5% of the purchase price.
Private Mortgage Insurance (PMI) is required on conventional loans when you put down less than 20%. It typically costs 0.5-1% of the loan amount annually. You can avoid PMI by: putting 20% down, choosing a VA loan (no PMI), using lender-paid PMI (higher rate), or requesting PMI removal once you reach 20% equity.
Iowa offers several programs: IFA FirstHome provides $2,500 grant for first-time buyers, Homes for Iowans offers reduced rates and down payment assistance up to 5%, Military Homeownership Assistance provides $5,000 grant for veterans, and various city/county programs exist. Income limits and property requirements apply.
A 30-year mortgage has lower monthly payments but higher total interest paid. A 15-year mortgage has higher payments but lower rates and much less total interest. Choose 30-year if you want payment flexibility or plan to invest the difference. Choose 15-year if you can comfortably afford higher payments and want to build equity faster.
Standard documents include: 30 days of pay stubs, 2 years of W-2s and tax returns, 2-3 months of bank statements, government ID, and authorization for credit check. Self-employed borrowers need 2 years of business tax returns and profit/loss statements. Additional docs may be needed for gift funds, rental income, or other situations.
Yes! Self-employed borrowers can qualify with 2 years of tax returns showing consistent income. Some lenders offer bank statement loans that use 12-24 months of deposits instead of tax returns. You may need to show business stability and keep good records. I work with lenders who specialize in self-employed borrowers.

Ready to Get Pre-Approved?

I'll connect you with trusted local lenders who offer competitive rates and understand Iowa's down payment assistance programs.

Get Lender Referrals Calculate Affordability

Sarah Ingles, REALTOR® SRES®

Smart Move Des Moines | CHASE. Collective Real Estate

📞 563-513-8771 | ✉️ [email protected]