Iowa HELOC Rates and Lenders

A home equity line of credit (HELOC) gives you access to cash secured by your home’s value. When you get a HELOC, you get a revolving credit line you can borrow against as needed. You can use a HELOC for various expenses, including home renovations and debt consolidation. 

Many HELOCs have variable interest rates, but some lenders offer a fixed-rate option. Regardless of which one you choose, it’s important to get the lowest rate possible. If you live in the Hawkeye State, keep reading to learn which lenders offer the best rates for Iowa HELOCs. 

Best online HELOCs in Iowa

Online lenders offer several advantages over local options, making them popular for many borrowers. One major benefit is convenience. You can complete an online application from the comfort of your home anytime. 

Online lenders often provide faster approval and funding processes than traditional banks, allowing borrowers to access funds sooner. Due to the extensive network of lenders competing in the digital marketplace, many online lenders offer more competitive rates and a broader range of loan products. The availability of online tools and resources also makes comparing offers and finding the best terms to suit your financial needs easier. 

Figure

Best Overall

4.9 _/5

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Why we picked it

Figure stands out for its fixed interest rates, eliminating the uncertainty of fluctuating payments. The process is streamlined, with no in-person appraisal needed. The option to redraw up to 100% of funds adds flexibility. 

The platform offers quick funding, potentially available in as few as five days, and allows you to check your rate without affecting your credit score. Figure’s user-friendly online application process and responsive customer service make it an excellent choice for borrowers seeking a smooth and efficient HELOC experience.

• Fixed interest rates
• No in-person appraisal is needed
• Option to redraw up to 100% of funds
• Funding can be available in as few as 5 days
• Check your rate without affecting your credit score

Loan details

Rates (APR)	6.55% – 15.54%
Loan amounts	$15,000 – $400,000
Draw period	5 years
Repayment term	5, 10, 15, or 30 years
Funding time	As few as 5 days
Properties	Primary home, second home, or investment property
Credit score	640

Aven

Best Customer Reviews

4.8 _/5

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Why we picked it

Aven stands out as a top HELOC option for Iowa homeowners because of its seamless, all-digital application process and competitive fixed interest rates. In Iowa, where home values have steadily increased, Aven offers an easy way for residents to tap into their equity without the hassle of in-person appraisals.

The flexibility to access loan amounts between $5,000 and $400,000 means Iowa homeowners can handle a range of financial needs, from smaller projects to larger home renovations or consolidating debt.

Aven’s fast approval process—sometimes as quick as 15 minutes—can be especially valuable for Iowa residents who need to access funds quickly for time-sensitive projects. The 5-year draw period with the ability to redraw up to 100% of funds gives borrowers ongoing flexibility, making it a great fit for homeowners managing long-term projects or financial plans.

Additionally, Aven’s optional debt protection program offers a safety net for borrowers facing unexpected challenges like unemployment.

• No in-person appraisal needed, making it convenient for Iowa homeowners
• Flexible draw period of 5 years with the option to redraw 100% of your available funds
• Approval in as little as 15 minutes, providing quick access to funds
• Competitive fixed interest rates ensure predictable monthly payments
• Optional debt protection program adds extra financial security
• Loan amounts from $5,000 to $400,000, suitable for both small and large expenses

Loan details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Draw period	5 years
Repayment terms	5, 10, 15, or 30 years
Funding time	As little as 3 days after signing
Properties	All types
Credit score	640

Bethpage FCU

Best Credit Union

4.7 _/5

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Why we picked it

Bethpage‘s borrowers can benefit from a 12-month fixed introductory rate for qualified borrowers and $0 closing costs, with the added flexibility to convert part of the HELOC to a fixed-rate option. 

As a reputable credit union, Bethpage provides competitive rates and personalized service, making it an excellent choice for members seeking loan amounts of up to $1 million without application, origination, or appraisal fees.

• No application, origination, or appraisal fees
• Convert part of your HELOC to a fixed-rate option
• 12-month fixed introductory rate for qualified borrowers
• $0 closing costs

Loan details

Rates (APR)	6.99% for 12 months, then variable
Loan amounts	$10,000 – $1 million
Draw period	10 years
Repayment term	5, 10, or 20 years
Funding time	36 – 70 days, on average
Properties	Primary homes, second homes, or condos
Credit score	670

LendingTree

Best Marketplace

4.5 _/5

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Why we picked it

LendingTree provides access to multiple lenders, allowing for comprehensive comparison tools to find competitive rates and customizable loan options. This platform is ideal for those who want to evaluate various loan offers to find the best fit for their financial situation. 

LendingTree’s extensive network of lenders ensures that borrowers can access a wide range of HELOC products, making it easier to find a loan that meets specific needs and preferences.

• Access to multiple lenders
• Comprehensive comparison tools
• Competitive rates
• Customizable loan options

Loan details

Rates (APR)	Starting at 6.24%
Loan amounts	$10,000 – $2 million
Draw period	2 – 20 years
Repayment term	5 – 30 years
Funding time	Varies
Properties	Varies
Credit score	Varies, 620 advisable

Local HELOCs in Iowa 

Online lenders offer many options, but looking local for Iowa HELOCs can offer several benefits. 

Local banks and credit unions may offer better rates or terms personalized to your needs and budget. You might also prefer working with a loan officer in person, making it easier to ask questions and share documents. Here are three popular options for local HELOC lenders in Iowa. 

Company	Rates (APR)	Locations
Dupaco Credit Union	4.99% intro rate; after that, a variable rate as low as 8.00%	Charter area extends to all 99 IA counties + selected counties in IL & WI
GreenState Credit Union	As low as 7.24%	All 99 IA counties + selected counties in IL, NE, SD, & WI
Security National Bank	As low as 7.55%	Branches in Sioux City, Orange City, Moville, & Mapleton

If you’re considering a local lender, here are several helpful questions to ask. 

• Is the lender a bank or a credit union?
• If the lender is a credit union, are you eligible for membership?
• Does the lender offer variable-rate HELOCs only, or is there a fixed-rate option?
• Does the lender also offer home equity loans, which allow you to borrow a lump sum?
• What fees does the lender charge?
• What is the draw period? In other words, how long will you be able to access your HELOC before repayment begins?
• Does the lender allow you to choose from multiple payment terms?
• Can you apply for a HELOC online, or must you visit a branch?
• Does the lender offer mobile and online banking to help you manage your HELOC account?
• What’s the lender’s reputation like? What do local people like or dislike about it? 

It’s also important to consider the lender’s eligibility requirements and what you’ll need to qualify for a HELOC. Lenders may vary regarding the minimum credit score required or the minimum loan-to-value ratio (LTV) they’ll accept. 

Your LTV measures the mortgage amount compared to your home’s value. A typical LTV for a HELOC is 80% to 85% or less, though it’s possible to find a local lender that may allow up to 90%. 

What’s the difference between online and local HELOCs in Iowa? 

When you put online and local HELOCs side by side, they tend to look similar at first glance. The differences between online lenders and local Iowa HELOCs usually lie in:

• Draw period
• Choice of repayment terms
• Rate type (i.e., fixed or variable)
• Rate ranges
• HELOC minimum and maximum limits
• LTV ratios
• Minimum credit score and income requirements
• Fees
• Customer service

Let’s compare Bethpage and Dupaco as an example. Both offer an introductory rate, but Dupaco’s is much lower. Bethpage, however, gives you twice the introductory rate: 12 months instead of six. 

Dupaco requires a minimum HELOC of $5,000, while Bethpage doubles the minimum to $10,000. Bethpage doesn’t charge closing costs; meanwhile, Dupaco pays your closing costs for you, up to $350. Dupaco doesn’t charge maintenance, annual, or transaction fees. 

Both have a 10-year draw period, but only Bethpage offers multiple repayment terms. This comparison level can add an extra step to finding a lender to work with. However, it’s well worth your time if you’re looking for the best deal possible on an Iowa HELOC. 

How do Iowa HELOC rates compare to other states? 

Comparing HELOC rates by state can give you perspective on whether geography matters when trying to get a loan. Pinning down an average rate for Iowa HELOCs is difficult. No studies or surveys collect that data. Nationwide, HELOC rates hover around 10% on average in July 2024. 

Your state of residence can affect HELOC rates if you:

• Live in an area prone to natural disasters, which may influence your overall risk profile
• Own a home in an area that’s experiencing rapid shifts in home values
• Are subject to rate caps as mandated by state law

Generally, there’s little difference in HELOC rates from one state to the next. However, your credit scores and choice of lender can have a greater impact on the rate you pay. 

As you can see from the sampling of Iowa lenders included here, it’s possible to find local Iowa HELOC options with rates well below the 10% national average. Variable rates may be lower than fixed rates, though they can increase according to changes in the underlying benchmark rate. 

How to get the best HELOC rates in Iowa 

Eligibility requirements for a HELOC in Iowa are similar to any other state. Some of the most important factors lenders may consider for HELOC approval include:

• Credit score
• Income
• Debt-to-income ratio(DTI), or how much of your monthly income goes toward debt repayment
• Home value and LTV ratios

Credit scores tend to carry the most weight when it comes to HELOC rates. The higher your credit score, the lower your rate is likely to be. Lenders often reserve the best rates for the most creditworthy borrowers. 

Reviewing your credit reports and scores can give you an idea of what lenders will likely see when you apply for a HELOC. You can use your scores as a guide for choosing a lender based on the minimum credit score they require for approval. 

It’s wise to shop around and get multiple HELOC rate quotes before selecting a lender. You can get quotes from a mix of online and local Iowa lenders to see which ones offer the most favorable terms. Just be aware of whether getting a rate quote online requires a hard credit check, which could affect your score by lowering it. Your credit score should recover after around six months. 

Are there any Iowa-specific requirements or regulations? 

Iowa legal code 535.10 discusses specifics for HELOCs and the rules lenders are required to follow. For example, lenders must: 

• Compute interest periodically
• Give borrowers the right to pay in full at any time, without penalty
• Allow borrowers to withdraw money from time to time, up to the maximum amount established by the loan agreement
• Limit annual maintenance fees to $15

One part of the code also specifies that the interest rate on a HELOC shall not exceed 1.75% per month. That means the maximum annual percentage rate an Iowa lender can charge is 21%. 

The law does not mention borrower responsibilities other than a discussion of foreclosure. If you fail to pay your HELOC on time, the lender can foreclose, but only if you owe more than $2,000. 

Your lender should be able to clarify the requirements for getting a HELOC in Iowa. The law doesn’t specify minimum or maximum HELOC limits, credit score requirements, or LTV requirements. Those will all depend on the lender you decide to work with. 

FAQ 

What credit score do you need for an Iowa HELOC?

The minimum credit score required for a HELOC in Iowa varies by lender. Most lenders prefer a minimum credit score of around 620 to 640, although some lenders may approve applicants with scores as low as 580.

What are the typical fees for an Iowa HELOC?

Typical HELOC fees include application fees, origination fees, appraisal fees, and closing costs. These fees vary depending on the lender and the loan amount. Some lenders may offer promotions with reduced or waived fees, lowering the overall cost of obtaining a HELOC.

Are there any special programs or incentives for Iowa HELOCs?

While no state-specific HELOC programs are unique to Iowa, many lenders offer special incentives such as introductory interest rates, waived fees, or flexible draw and repayment terms. Shop around and compare lenders to find any available incentives or special programs that best suit your financial needs.

What happens if I move to another state with a HELOC in Iowa?

If you move to another state with a HELOC from Iowa, the terms of your HELOC generally remain unchanged. Your Iowa property secures the loan. However, managing your account might be less convenient if your lender doesn’t have a presence in your new state. It’s important to notify your lender about your move and ensure you continue meeting your HELOC agreement’s terms and conditions.

How we chose the best HELOCs in Iowa

LendEDU evaluates HELOC lenders to help readers find the best home equity products. Accessibility is important to this evaluation, so our editorial ratings system primarily focuses on companies available in most U.S. states. That’s why the lenders we selected in the online section have editorial ratings. They’ve gone through an extensive review process and were determined to offer superior products compared to other lenders. We’ve also independently verified that these companies are available in Iowa.

Since most local lenders aren’t available outside state lines, they haven’t gone through the same review process as the online lenders. Instead, we found them through separate research and determined that each offered solutions worthy of consideration by readers.

Recap of Iowa online HELOC rates and lenders