Iowa is steady investor territory: moderate prices, statewide landlord rules and a small transfer tax. It also runs real estate closings in a way no other state does, without private title insurance, and a few of its regional cities sit beyond most lenders' location rules. This page covers both, then our lending partners' terms for Iowa investment property.
Our lending partners' underwriting guidelines look for property within about 45 to 60 minutes of a metro area of 200,000 people or more. Iowa has several, and they cover most of its population.
Des Moines and its suburbs, West Des Moines, Ankeny, Urbandale, Waukee and Johnston, with Ames about half an hour north.
Cedar Rapids and Iowa City, half an hour apart along the I-380 corridor, with Coralville, Marion and North Liberty between them.
The Quad Cities on the Iowa side: Davenport and Bettendorf.
Council Bluffs, across the river from Omaha and inside its metro.
Where it gets harder: Sioux City, Dubuque, Mason City and Fort Dodge are regional centers whose metros are smaller than the guideline and more than an hour from a larger one. Waterloo and Cedar Falls sit near the edge of the hour from Cedar Rapids. Check an address there before you commit. Two rules apply everywhere: a finished value of at least $100,000, and a lot of two acres or less.
This surprises almost every out-of-state investor. Iowa does not allow private title insurance on Iowa real estate. The state uses a different system, and it changes how a closing works.
The abstract. Each property has an abstract of title, a written history of its ownership and liens, which is updated for each sale.
The attorney's opinion. An Iowa attorney examines the updated abstract and writes an opinion on whether title is good.
The guaranty. Lenders and owners are protected by a title guaranty certificate from Iowa Title Guaranty, a division of the Iowa Finance Authority, rather than by a private policy.
For a hard money borrower the practical effect is time. The abstract has to be located, updated and reviewed before closing, so order it as soon as you have a signed contract and a term sheet. A seller who cannot find the abstract adds cost and delay. Ask about it before you sign.
Transfer tax. Iowa charges 80 cents per $500 of value above the first $500, about 0.16 percent. On a $250,000 resale that is roughly $400.
Landlord law. Iowa's landlord and tenant act applies statewide. A security deposit can be no more than two months' rent and must be returned within 30 days after the tenancy ends and the tenant gives a forwarding address, with an itemized statement. For unpaid rent the landlord can serve a three-day notice to pay before ending the tenancy and filing for eviction.
City rental rules. Several Iowa cities, Des Moines among them, run their own rental registration and inspection programs. Check the city's rules before you buy a rental, since an inspection can come with a list of required repairs.
Foreclosure goes through the courts in Iowa, and redemption rights can apply after a sale, which makes every lender careful about the exit plan.
No Iowa county is on the list where our lending partners cap leverage at 50 percent, so standard terms apply wherever the location test is met.
Fix and flip and bridge loans: from $50,000, up to 100 percent of cost but no more than 70 percent of after-repair value, with a 600 minimum credit score. Standard pricing under the underwriting guidelines is 12.99 percent and 2.99 points. The 10.99 percent starting rate is available after two loans have been paid off in good standing with our lending partner; a first-time borrower should expect to start above it and earn the way down.
DSCR rental loans: $75,000 to $2 million at up to 80 percent of value, qualified on the rent, with rates from 5.99 percent on the program page.
Construction loans: $100,000 to $3 million on non-owner-occupied single-family homes, from 8.5 percent.
Loans close in an entity such as an LLC, and every owner of 30 percent or more personally guarantees the loan. Terms change, so we confirm them for your property before you commit.
Yes. Iowa is one of the states our lending partners finance in. The property must be non-owner-occupied, have an after-repair value of at least $100,000, and sit within roughly 45 to 60 minutes of a metro area of 200,000 people or more, which covers Des Moines, Cedar Rapids and Iowa City, the Quad Cities and Council Bluffs.
Iowa does not allow private title insurance on Iowa property. Instead, title is checked through an abstract of title reviewed by an attorney, and lenders protect themselves with a title guaranty certificate issued by Iowa Title Guaranty, a division of the state's housing finance authority. Build the abstract update and the attorney's opinion into your closing timeline.
Iowa's real estate transfer tax is 80 cents for every $500 of value above the first $500, about 0.16 percent. On a $250,000 sale that is roughly $400.
No more than two months' rent. The deposit must be returned within 30 days after the tenancy ends and the tenant provides a mailing address, with an itemized statement of anything withheld.
Under Iowa's landlord and tenant law, the landlord can give a three-day written notice to pay. If the rent is not paid within those three days, the landlord can end the rental agreement and file for eviction.
Check the exact address. Our lending partners' guidelines look for property within about 45 to 60 minutes of a metro area of 200,000 people or more. Sioux City and Dubuque have smaller metros and sit more than an hour from Omaha or Cedar Rapids, so many properties there fall outside the guideline.
Holding an Iowa rental? Our two free landlord books compare what a rental costs to carry across the states.
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Dominion Hard Money does not lend its own funds; it arranges financing through third-party lending partners. All financing is arranged for business purposes only and secured by non-owner-occupied investment property. Not a commitment to lend. All loans subject to underwriting, property review, and approval by the lender. Terms vary by property, borrower experience, and exit strategy.
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