Conventional loans offer numerous options for home buyers, whether you’re purchasing your first starter home or a retirement vacation home.

Fixed-Rate Conventional Mortgage

A fixed-rate loan has a rate that is locked in, which means your principal and interest payments remain the same for the entire life of the loan. This is a terrific loan if you plan to stay in your home long term, or if you’re not comfortable with an interest rate that can change over time.

Adjustable Rate Mortgages (ARM)

An adjustable rate mortgage—or ARM— has an interest rate that is locked in for three, five, or seven years then adjusts once a year thereafter. Your rate can adjust up or down depending on the limits of your loan’s terms and its position in the market. This type of loan is great for buyers who want to lock in a low rate for a set number of years. Members with ARMs may choose to refinance (pay off the existing loan with a new loan, especially if the interest rate is lower) at any time.

If you’re looking to buy your first home or if you haven’t owned a home in recent years, our First-Time Home Buyers program may be an option.

The First-Time Home Buyer program offers:

• A low down payment
• A low fixed interest rate

Iowa First-Time Homebuyer Savings Account

The Iowa First-Time Homebuyer Savings Account (IFTHSA) is an additional tool for first-time homebuyers. IFTHSA is a savings account created by the Iowa legislature to help Iowans save for their first home. It includes provisions allowing individuals—including those who already own a home—to make tax-deductible contributions into an account to be used by a designated person saving to own a first home.

Program guidelines include:

• Can be used for a down payment and closing costs for a principal residence in Iowa
• May be established by an Iowa resident if each established account has a specified designated beneficiary (the person who will utilize the funds within the account to purchase a home)
• An account can be established by anyone; it does not need to be established by the designated beneficiary
• The designated beneficiary must qualify as a first-time homebuyer at the time the account is established and at the time the funds within the account are used for a home purchase

Advantages of an IFTHSA:

• Income from interest earned on an IFTHSA is not taxable on state of Iowa tax returns
• The account is interest bearing
• There are no maximum contribution limits (only deductible limits)
• The state of Iowa tax deduction for account contributions is available for up to ten years
• Allowable deduction limits for contributions adjust annually for inflation

Home$tart is a down payment and closing cost assistance program offered by the Federal Home Loan Bank (FHLB) Des Moines for qualified first-time home buyers. The first-time home buyer must meet the qualifying guidelines set forth by FHLB which include but not limited to income qualifications based on household size, completed home buyer education, and approved financing by the lender in the purchase of a primary residence. Home$tart participants may receive $15,000 in grant funds; the grant is subject to a five-year deed restriction.

Learn more: Home$tart Flyer

DuTrac offers short term loans up to 80% loan to value with interest only payments for the construction financing to build your new home.

Lot Loans

A Lot Loan allows you to purchase the land today that you intend to build a residence on in the future! Your principle and interest payment are fixed for three years. At the end of three years the mortgage must be paid in full.

FHA loans are ideal for borrowers who require a low down payment and a low monthly payment. This is made possible by the Federal Housing Administration (FHA), which insures the homes for qualified borrowers.

There are numerous benefits of an FHA loan, including:

• Requires as little as a 3.5% down payment, which can come from a family member, or a grant from a state or local government down payment assistance program
• Allows for a minimum credit score of 620, without increases to interest rate
• Allows for a very limited credit history
• Assumable
• Streamlined refinancing process
• Non-owner occupied co-borrower can be used for qualifying
• Rates are typically lower than conventional mortgages
• More lenient credit requirements
• More lenient loan qualifying standards
• Allows for a debt-to-income ratio of up to 55%
• Waiting period of three years after a foreclosure/short sale, versus seven years with other mortgage products
• Waiting period of two years after a bankruptcy, versus four years with other mortgage products

FHA Alternative Loan

An additional option for qualified home buyers is an FHA Alternative Loan. Designed as a blend between an FHA loan and a conventional loan, it requires only a 3% down payment and offers lower monthly premiums for private mortgage insurance (PMI) than a traditional FHA loan. The down payment can be gifted funds from a relative, non-profit organization or government agency.

We’re proud to offer mortgage loans with the United States Department of Veterans’ Affairs (VA) guaranty to our country’s veterans. The VA Home Loan Program provides eligible veterans with home financing with no down payment required. According to federal law, the VA is authorized to guarantee loans made to eligible veterans only and for only specific purposes.

Eligible veterans receive many advantages by obtaining VA home loan financing including:

• No down payment required unless the purchase price exceeds the reasonable value of the property, or the loan is a Graduated Payment Mortgage (GPM) DuTrac may require a down payment if necessary to meet secondary market requirements
• Flexible underwriting standards
• Refinancing at a discounted rate is an available option

For additional options and specific information related to the VA Home Loan Program, visit the United States Department of Veterans Affairs website.

To meet the diverse needs of rural residents, the United States Department of Agriculture (USDA) Rural Development has a variety of home loan programs available for qualified buyers.

Requirements for qualification:

• Minimum 640 FICO® Score required
• Property must be located in an eligible rural area of Iowa, Illinois or Wisconsin
• Income restrictions apply

Advantages of a USDA Rural Development home loan include:

• 100% financing available
• No sales price restrictions
• Seller allowed contributions
• Closing costs may be financed if the appraised value is higher than the sales price
• Competitive interest rates

To determine the full range of options available, visit the United States Department of Agriculture website or contact a real estate lending consultant.

We’re happy to refinance your current loan regardless of where the loan is currently held.

Refinancing your existing mortgage could make sense for a number of reasons:

• Take advantage of a lower rate
• Reduce your monthly payment
• Consolidate your debt
• Take advantage of a once in a lifetime opportunity
• Help a family member with educational expenses

Loan Modification(s)

Members who already have an existing owner-occupied first mortgage with DuTrac may modify their fixed-or adjustable-rate mortgage to a lower rate with reduced closing costs saving them money now and in the future!

Investment Property Loans

DuTrac offers loans for the purchase or refinancing of a non-owner occupied 1-4 family unit investment property. An investment property loan may require a down payment and is available with a variety of terms.

Second/Vacation Home Loans

This program is designed to allow members to purchase or refinance a vacation home or a second home. The down payment is required with a variety of amortization terms. The home must be a single-family dwelling, including condos.

Bridge Loans

This temporary loan bridges the gap between the purchase time of your new home and the selling of your existing home.

Jumbo Loans

A type of mortgage for homeowners interested in financing or refinancing more expensive homes. They’re called “jumbo” because they exceed the loan sizes determined by the government-sponsored enterprises that buy loans from lenders. A Jumbo Loan is also referred to as a nonconforming loan. The loan limit for consideration as a Jumbo Loan varies by location.