Conventional Loans—The Workhorse of Iowa Home Financing

If you’ve got decent credit and stable income, conventional loans are probably your best bet. Here’s why they’re my go-to recommendation for many Iowa buyers.

What Makes Them Work

Conventional loans through Fannie Mae and Freddie Mac offer flexibility most government loans can’t match. You can put down as little as 3% with strong credit, and once you hit 20% equity, your private mortgage insurance (PMI) drops off automatically. That’s money back in your pocket every month.

Who They’re Built For

These loans shine for buyers with credit scores above 620 and consistent employment. If you’re a W-2 employee with clean credit history, you’ll likely get competitive rates and reasonable terms.

The Iowa Advantage

Our housing market makes conventional loans particularly attractive. Median home prices in the Des Moines metro remain accessible compared to national averages, so that 5-10% down payment goal is achievable for many families.

When to Look Elsewhere

If your credit’s below 620 or you’re struggling to save for down payment, FHA or USDA might serve you better. Also, veterans should always check VA benefits first—they typically beat conventional terms.

Ready to explore your options? Let’s run your numbers and see what conventional financing looks like for your situation.

Molly Maguire, NMLS #34702
Midwest Family Lending | Urbandale, Iowa
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All loans subject to approval. Equal Housing Lender.