Investment property loans that qualify on rent.
A DSCR loan in Iowa is an investment property mortgage that qualifies on the rent the property earns, not your personal income. HUD puts the 2 bedroom Fair Market Rent for the Des Moines metro at $1,360 a month (HUD User). Pillar Mortgage Group (NMLS 2700076) arranges DSCR loans in Iowa up to $5 million.
Facts checked November 1, 2026. Not a commitment to lend.
DSCR loans by state
We lend DSCR in 35 states. Pick yours.
Every value links to its primary source. Details for each follow further down the page.
| Iowa fact | Value | Source |
|---|---|---|
| Security instrument | Mortgage | Iowa Code ch. 654 |
| Foreclosure | Primarily judicial (ch | Iowa Code 655A.2, 655A.6, 655A.9 |
| Transfer and recording taxes | $0.80 per $500 of value above the first $500 | Iowa Code 428A.1 |
| Security deposit | Two months' rent | Iowa Code 562A.12(1) |
| Notice for unpaid rent | 3 days after written notice of nonpayment | Iowa Code 562A.27(2) |
| Rent control | Preempted | Iowa Code 364.3(9) |
| LLC formation fee | $50 | Iowa Code 489.122(1)(c) |
| Median listing price | $284,900 in September 2026 ($279,000 in September 2025) | Realtor.com via FRED |
| HUD 2 bedroom Fair Market Rent | $1,360, The Des Moines metro | HUD User |
Full walk through: how DSCR is calculated.
The guidelines that set our Iowa DSCR loans apart.
Loan amount
Up to $5M
Credit
660 and up
Down
20 to 25%
Vesting
LLC ok
Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend. Compare with typical DSCR programs.
These public benchmarks show where Iowa rents and prices sit right now.
Median listing price
$284,900
September 2026, up 2.1% from $279,000 in September 2025
Quick math (computed from the figures above): Using the Iowa median listing price, $284,900, a 25% down payment is $71,225 and the loan is $213,675. A year of rent at the Fair Market Rent for the Des Moines metro ($1,360) is $16,320, or 5.7% of that price. A year of rent at the Fair Market Rent for the Cedar Rapids metro ($1,054) is $12,648, or 4.4% of that price.
Fair Market Rent is a HUD benchmark, not an appraisal.
The rent field starts at the HUD 2 bedroom Fair Market Rent for the Des Moines metro. HUD also lists the Des Moines metro at $1,360 and the Cedar Rapids metro at $1,054. Swap in your lease or appraisal rent, then add your quoted rate. For a price reference, the median Iowa listing was $284,900 in September 2026.
See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.
Enter rent, price and your quoted rate to see your DSCR.
Loan amount (L) = Price × (100 minus Down %) ÷ 100
P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12
P&I (40 year interest only) = L × r
PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA
DSCR = Monthly rent ÷ PITIA
Rent needed for a target DSCR = Target × PITIA
Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Example values are illustrations, not a quote.
Hypothetical PITIA of $1,775 (P&I $1,400, taxes $250, insurance $125), real Iowa rents. Not a quote or a rate.
0.77DSCR
$1,360 / $1,775 = 0.77: fits programs down to 0.50.
0.59DSCR
$1,054 / $1,775 = 0.59: fits programs down to 0.50.
Share the deal and we will run the ratio, compare lenders and lay out your options in plain numbers.
Investors from any state can buy in Iowa.
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Most Iowa DSCR deals land in these markets. Check the city rules before you buy.
City rules change. Confirm with the city and your HOA before you buy, and ask us how your lender counts short term rental income.
Know the Iowa landlord rules before you close. They shape your lease, your deposit and how fast you can act on unpaid rent.
| Topic | The rule | Citation |
|---|---|---|
| Security deposit cap | Two months' rent | Iowa Code 562A.12(1) |
| Security deposit return | 30 days from termination of tenancy (after receiving tenant's mailing address) | Iowa Code 562A.12(3) |
| Pay or quit notice | 3 days after written notice of nonpayment | Iowa Code 562A.27(2) |
| Month to month termination | 30 days written notice before the periodic rental date | Iowa Code 562A.34 |
| Rent control | Preempted. A city shall not adopt or enforce any ordinance limiting the amount of rent for private residential or commercial property. | Iowa Code 364.3(9) |
Not legal advice.
Taxes go straight into PITIA, so they move your ratio. Budget for the investor rate, since rentals usually do not get homestead treatment.
Who closes your loan, which security instrument you sign and what the state charges to record it.
What it costs to form and keep an LLC in good standing with the Iowa Secretary of State.
The Iowa rules that touch your lease, your closing and your entity.
Documents: contract, lease or rent schedule, bank statements, LLC papers, insurance quote. No tax returns. Details.
Iowa is highlighted. We also lend DSCR in Wisconsin, Missouri and Kansas next door, and in 30 more states. Tap a gold state to open its guide.
Straight answers for investors buying or refinancing rentals in Iowa.
PMG guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
Book a free callInvesting across state lines? We lend DSCR in these neighbors of Iowa too.
Primary sources, each with the date checked. PMG program facts come from Pillar Mortgage Group.
Send the Iowa property and rent. We run the ratio and lay out terms before you offer.
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Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076 | Arizona License MB-2009671 | View NMLS Consumer Access