Best HELOC Rates and Best HELOC Lenders in Iowa (2024)

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Updated: July 26, 2024

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The best home equity line of credit (HELOC) lender in Iowa is Lower. It stands out for its accessibility, offering services online to residents across Iowa. It offers a competitive APR range of 8.75% to 13.5% and loan amounts from $15,000 to $500,000. Applicants can be approved with credit scores as low as 580, and customers benefit from no annual fees.

MoneyGeek considered various factors beyond cost to determine the best lender and evaluated 13 HELOC lenders for Iowa homeowners. It's worth noting that other lenders exist beyond this selection. Exploring local options such as Greater Iowa Credit Union, GreenState Credit Union and Veridian Credit Union, with their own unique HELOC offerings, can yield tailored advantages.

Best HELOC Lenders in Iowa

Best Overall: Lower

Best for Affordability: Aven

Best for Bad Credit: U.S. Bank

Best for Large Loan Amounts: Bank of America

Best for Debt Consolidation: PNC Bank

MoneyGeek evaluated Iowa HELOC lenders against a rubric that included APR ranges, annual fees and affordability, among other criteria.

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Our analysis was completed in July 2024 and includes lenders that do business in Iowa.

13Lenders Analyzed

    Overall Best HELOC Lender in Iowa

  • Lower
    • 8.75% to 13.5%APR Range
    • $15,000 to $500,000Loan Amount Range
    • 580Minimum Credit Score
    • 10-year draw period; undisclosed repayment period Repayment Terms
    • NoneAnnual Fees

    Lower is the overall best HELOC lender in Iowa. It offers a no-annual-fee HELOC with an APR range of 8.75% to 13.5%. It understands that not everyone has perfect credit, accepting scores as low as 580. Its loan amount extends from $15,000 to $500,000, ensuring it meets a wide spectrum of borrowing needs. Homeowners in Iowa can benefit from Lower's transparent terms and personalized support post-application. This lender makes tapping into home equity straightforward and accessible, helping you manage expenses or invest in future plans.

    Pros

    • Accepts credit scores as low as 580
    • A+ rating from BBB
    • Minimum loan amount is $15,000

    Cons

    • No rate discounts offered
    • No fixed-rate HELOC conversion
    • Doesn't disclose repayment period
    Lower

HELOC Rates in Iowa by Credit Score

The APR of your home equity line of credit (HELOC) can vary based on multiple aspects. In Iowa, rates may differ by repayment terms, even with a solid credit score and an LTV ratio below 80%. Review the table provided to check how rates change when you adjust the parameters.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:680 - 740
LTV Ratio:
LTV Ratio:80% - 95%
HELOC (10 year)APR7.40%
HELOC (15 year)APR7.40%
HELOC (20 year)APR7.40%

Where does this data come from?

Shopping around for the best HELOC lender in Iowa can save you money. Lower annual percentage rates (APRs) mean smaller interest payments over the life of the loan. Picking a lender with a competitive APR can lead to more affordable borrowing, giving you extra cash for other uses.

HELOC Calculator: Do You Qualify in Iowa?

Borrowing against your home equity in Iowa can be a smart move if you have a good chunk of it, as suggested by TransUnion's report. With more equity, you could potentially borrow more. Meanwhile, according to Experian, the average credit score in Iowa is 730. Securing a HELOC should be feasible if your credit score is around this figure.

Getting a HELOC in Iowa isn't just about home equity and credit score; other factors also play a role. Use the HELOC calculator to test different scenarios and determine your eligibility. This tool simplifies HELOC hunting by offering a clear picture of your options.

HELOC Calculator
Discover borrowing capacity, interest rates, and make informed financial choices with confidence!
You may be eligible for a HELOC. Because you have an LTV at or below 85%, you may be approved for a home equity line of credit.
10 Years Payoff Scenario
$732/mo
Eligible to Borrow
$62,500
Loan-to-Value Ratio
80%
Note: Lenders set varying limits on the acceptable Loan-to-Value (LTV) ratio, depending on the property type (owner-occupied or investment). Typically, owner-occupied homes have a higher acceptable LTV, often capped at 85%.

    Best HELOC Lender in Iowa for Affordability

  • Aven
    • 7.99% to 15.49%APR Range
    • Up to $250,000Loan Amount Range
    • 620Minimum Credit Score
    • Unlimited draw period; 5 to 10-year repayment period for cash out;Repayment Terms
    • NoneAnnual Fees

    Aven is the top pick for homeowners in Iowa seeking cost-effective HELOC options. With APRs ranging from 7.99% to 15.49% and no annual fees, Aven offers significant savings. Its product acts like a credit card but is reported as a HELOC, offering flexibility with the financial backing of your home's equity. The absence of origination and prepayment fees, paired with a possible 0.25% rate reduction for setting up autopay, are beneficial for Iowans focusing on affordability.

    Pros

    • Provides credit card backed by home equity
    • Earns 2% unlimited cash back
    • Allows bank cash out with a one-time fee

    Cons

    • Line limit up to $250,000 only
    • Card delivery takes 10 days
    • No financial hardship assistance
    Aven

How does MoneyGeek recommend lenders for affordability?


    Best HELOC Lender in Iowa for Bad Credit

  • U.S. Bank
    • 8.95% to 13.1%APR Range
    • $15,000 to $750,000Loan Amount Range
    • 660Minimum Credit Score
    • 10-year draw period; up to 20-year repayment periodRepayment Terms
    • Up to $75Annual Fees

    U.S. Bank is the ideal HELOC lender for homeowners in Iowa with bad credit. A lower credit score of 660 doesn't prevent you from securing a HELOC. U.S. Bank offers an APR range from 8.95% to 13.1%, and you could reduce this rate by a 0.5% discount for enrolling in autopay. In Iowa, where financial flexibility can be a game-changer, U.S. Bank's minimum line amount of $15,000 and the option for interest-only payments during the draw period provide a lifeline. U.S. Bank is accredited by the BBB, though it currently does not have a rating.

    Pros

    • Allows prequalification online
    • Offers fixed-rate option
    • Minimum line amount is $15,000

    Cons

    • Closing must be in person
    • $75 annual fee
    • No financial hardship assistance
    U.S. Bank

How does MoneyGeek recommend lenders for those with bad credit?


    Best HELOC Lender in Iowa for Large Loans

  • Bank of America
    • Starting at 9.82%APR Range
    • $25,000 to $1,000,000Loan Amount Range
    • UndisclosedMinimum Credit Score
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees

    In Iowa, Bank of America is the top HELOC lender for large loan amounts. HELOCs can be a strategic way to fund home renovations and unexpected medical bills. Bank of America offers a maximum loan amount of $1 million, providing sufficient funds for substantial expenses. With it, borrowers have 20 years to repay after a 10-year draw period. This setup gives homeowners the time and flexibility needed when borrowing large sums. Plus, the absence of application and annual fees makes Bank of America a smart and economical choice for financial management.

    Pros

    • Competitive introductory rate for six months
    • No application or closing costs
    • Maximum loan amount of $1 million

    Cons

    • Closing must be done in person
    • $450 early closure fee
    • Non-transparent HELOC requirements
    Bank of America

How does MoneyGeek recommend lenders for large loan amounts?


    Best HELOC Lender in Iowa for Debt Consolidation

  • PNC Bank
    • 8.22% to 14.5%APR Range
    • $10,000 to $1,000,000Loan Amount Range
    • UndisclosedMinimum Credit Score
    • Undisclosed draw period; 5-30 year repayment periodRepayment Terms
    • $50Annual Fees

    A HELOC from PNC Bank might be your solution if you're in Iowa and looking to consolidate high-interest debts like credit card balances or personal loans, . It has an APR range from 8.22% to 14.5%, interest rates that are likely lower than your current debts, and loan amounts up to $1 million. Funds are available just three days after closing. It reimburses fees and offers a 0.25% rate deduction for autopay from a qualifying PNC checking account, maximizing your savings potential.

    Pros

    • Ability to switch between variable and fixed rates
    • Up to $1 million borrowing limit
    • Online tracker for document uploads and progress

    Cons

    • Charges a $50 annual fee
    • Charges a late fee
    • Does not disclose key information
    PNC Bank

How does MoneyGeek recommend lenders for debt consolidation?

How to Choose a HELOC Lender in Iowa

MoneyGeek has highlighted the top HELOC lenders in Iowa for various needs. However, to refine your search and find a match tailored to your situation, the following strategies will guide you through the process, ensuring a smooth and informed lender selection.

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    Define Your HELOC Objective

    Understanding what you plan to use your HELOC for in Iowa can direct you to the right lender. Different lenders cater to specific needs — whether you want to renovate your home, consolidate debt or finance education. Aligning your goals with their offerings is key.

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    Investigate Lender Reputation

    Research lender credibility by checking with the Better Business Bureau and the Iowa Division of Banking. Positive ratings and reviews signal reliability, which is essential when entrusting a financial institution with your HELOC.

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    Compare Rates and Fees

    Looking at different HELOC rates and fee structures, including closing costs, can save you money in Iowa. Don't just focus on interest rates; consider fees and terms to find the best financial fit.

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    Check Community Standing

    In Iowa, a lender's local reputation can be telling. Seek out lenders recognized with community awards, as they often reflect a commitment to customer satisfaction and service quality.

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    Assess Lender Flexibility

    Flexible lenders in Iowa may offer options like interest-only payments, conversion to a fixed-rate HELOC and online application processes. A simple prequalification can indicate a smoother HELOC experience.

FAQ: HELOC Lender and Rates in Iowa

Navigating the world of home equity lines of credit (HELOC) can be smooth with the right knowledge. These frequently asked questions will guide Iowa homeowners through the selection process, outlining strategies to identify a HELOC lender that aligns with their financial needs and goals.

What’s a good HELOC rate in Iowa? What are the best HELOC rates in Des Moines?
Which HELOC lender is best overall in Iowa?
Can I still qualify for a HELOC in Iowa if I have bad credit?
Which HELOC lender in Iowa is best for large loans?
Can I use a HELOC to consolidate debt?
How can I ensure I find the right HELOC lender in Iowa for me?

About Zachary Romeo

Zachary Romeo headshot

Zachary Romeo is the Head of Loans and Banking at MoneyGeek, with over 10 years of experience and forthcoming certification as a Commercial Banking and Credit Analyst (CBCA). Previously, he led production teams for some of the largest online informational resources in higher education.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt through people-first content.

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