Iowa State Bank  

Types of Mortgage Loans

We offer a wide variety of mortgage products and rate options to meet your needs.

Fixed Rate Mortgages
With this type of mortgage loan, your principal and interest payment will be the same amount throughout the term of the loan. If you have limited income, you will benefit from a fixed rate because you’ll have a consistent payment schedule that's easy to budget. Remember that property taxes and hazard insurance may change from year to year and therefore changing your monthly payment.

First Time Home Buyer Program
The Iowa Finance Authority (IFA) offers qualified homebuyers two great home financing opportunities for affordable mortgage financing with less restrictive qualifying guidelines.

First Home – Offers long term financing with below market interest rates, a low down payment and minimal closing costs.  To be eligible you must be a first-time homebuyer.  There is an exception if you purchase a home within a targeted area.  There is a maximum household income limitation and maximum purchase price limitation.  You will need to complete a home buyer education and financial literacy class, secure pre-approval, submit a purchase agreement, have an acceptable credit history and demonstrate your ability to repay the loan.

First Home Plus – Provides cash assistance to help with closing costs, down payment, or repairs. 

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Community Reinvestment Home Loan Program (CRHLP)
Iowa State Bank and Citizens for Community Improvement have worked together to offer CRHLP.  This loan program requires a minimal down payment and closing costs and has less restrictive loan qualifications in terms of debt-to-income ratios and credit history. 

To qualify for a CRHLP loan, the home you wish to buy or improve must fall inside a low-to-moderate income area as determined by the U. S. Department of Housing and Urban Development (HUD) and the U. S Census Bureau.  However, if you currently earn less than 80% of the median income, you may qualify regardless of your desired home’s location.  There is no minimum loan amount and fixed-rate mortgages are available. 

Government Programs
Iowa State Bank offers financing through government programs such as: Veterans Administration (VA).  This program can provide flexible financing arrangements for specific homebuyers who meet program qualifications.  Flexible terms are provided by lower down payments, financing closing costs, and less restrictive qualifying guidelines.   

Balloon Mortgages
If you’re looking for flexibility and a competitive rate, a balloon mortgage loan will help get you started.  Your payments are based over a long-term; however, the balance is due at the end of the set term.  You may have the option of extending the balance at maturity for the remaining term at an adjusted market rate. 

Mortgage Refinancing
In order to take advantage of a lower interest rate to reduce your mortgage payment, to payoff your mortgage sooner, or convert from an adjustable rate to a fixed rate, then a mortgage refinance may be right for you.  Refinancing is when you apply for a secured loan in order to pay off another different loan secured against the same property.  You may benefit from a mortgage refinance is you plan on living in your home a number of years and you’ve built up considerable equity in your home.  Because refinancing involves taking out a new mortgage, you will usually have to pay closing costs. 

 

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