Multifamily & Apartment Financing in Iowa

Commercial Loan Direct (CLD) provides apartment loans in Iowa. Current apartment loan rates in Iowa range from 4.93% to 12.95%, depending on the loan program.

Iowa Apartment Loan Rates

Loan Types Rates LTV Loan Amount
Fannie Mae 5.66% - 6.46% 80% $700,000+
Freddie Mac 5.96% - 9.43% 80% $1,000,000+
FHA 4.84% - 6.19% 83.3% $5,000,000+
Conduit / CMBS 5.81% - 7.74% 75% $2,000,000+
Insurance 5.31% - 8.59% 75% $5,000,000+
USDA 6.2% - 8.95% 85% $1,000,000+
Bridge 5.95% - 12.95% 80% $1,500,000+
Construction 5.7% - 8.95% 83.3% $1,000,000+
Conventional 4.93% - 8.95% 80.0% $1,000,000+

For more in-depth multifamily interest rates, please visit our Apartment Loan Rates page.

Note: The commercial mortgage rates displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any commercial mortgage interest rate or data entry errors that might affect the displayed commercial loan rates. Commercial loan rates may change at any time and without notice.

Additional Multifamily Types

Additional Multifamily Mortgages

Locations Served in Iowa

We are proud to be serving the state of Iowa. Here are our commercial loan statistics for this state.

Iowa Cities and Towns Served

32

The 2026 environment in Iowa is characterized by a "flight to quality" and a heavy reliance on the Iowa Finance Authority (IFA) to bridge valuation gaps. Following recent legislative updates, the state has decoupled key housing incentives from broader business tax caps, ensuring more consistent funding for multifamily projects even amidst federal fiscal uncertainty.

Core State Financing and Tax Credits

The IFA serves as the primary gateway for capital, utilizing a consolidated application process for its most competitive resources.

  • Low-Income Housing Tax Credits (LIHTC): The 2026 Qualified Allocation Plan (QAP) governs both 9% and 4% credits. For the 2026 round, the IFA has prioritized Innovation Set-Asides, awarding up to $1 million in credits for projects that demonstrate "bold" ideas in durability and energy efficiency. The 9% application deadline for 2026 is set for May 15, 2026.
  • Workforce Housing Tax Credit (WHTC): A vital tool for non-subsidized "attainable" housing. For FY 2026, the aggregate cap for this program is $43 million. Notably, 50% of this limit is strictly allocated to "Small Cities" (populations under 30,000). Applications for the 2026 WHTC cycle open March 9, 2026, and close June 10, 2026.
  • IFA Multifamily Loan Program: Provides long-term mortgages of up to 30 years with a 35-year amortization. These loans are open year-round to any organization for affordable projects and are often used as a more flexible alternative to traditional commercial bank debt.
  • State Investment Tax Credits: Developers can receive a transferable tax credit of up to 10% (Urban) or 20% (Small City) for investments related to the construction or rehabilitation of projects on grayfield or brownfield sites.

Market Trends and Regulatory Shifts

Iowa’s market in 2026 is responding to localized legislative changes and shifting investor appetite for "safe" Midwest yields.

  • Cap Rate Normalization: After a period of stagnation, Iowa multifamily cap rates are projected to edge lower toward 5.1% to 5.4% by late 2026 as interest rate clarity returns. This is attracting 1031-exchange capital from higher-priced markets like Denver and Chicago.
  • Per-Unit Cost Caps: To ensure funds create workforce-accessible housing, the WHTC program has instituted strict 2026 cost caps: $230,000 per unit for urban multifamily and $250,000 per unit for small city multifamily.
  • Property Tax Reform: The 2026 legislative session is actively debating a transition from two-year to three-year property assessments and a potential 20-year sunset for Tax Increment Financing (TIF), which would significantly alter long-term pro forma projections for new developments.

2026 Debt Environment and Underwriting

Lenders in Iowa are emphasizing "mission-driven" metrics to align with new federal purchase caps.

  • Agency Lending: Fannie Mae and Freddie Mac have each been capped at $88 billion for 2026, with a mandate that 50% of their volume be mission-driven. This makes financing for Iowa’s "workforce" and "affordable" projects more available than for pure luxury builds.
  • Interest Rate Stabilization: Benchmark rates for permanent, non-recourse debt have settled into the 3.6% to 4.6% range, facilitating a wave of "bridge-to-perm" refinances for projects completed in 2024 and 2025.
  • Construction Hurdles: Underwriters are heavily scrutinizing "Readiness to Proceed," as 50% tariffs on steel and aluminum continue to pressure hard costs. Lenders are often requiring 10-15% larger contingency reserves in 2026 construction budgets.

Lending Cities

Commercial loan direct provides services in the following Iowa cities. Please note we may be able to provide services in other cities as well by request. Rates are dependent on the market in your locale, feel free to use the provided Iowa economic reports to get a better understanding of your market.

  • Ackley
  • Adair County
  • Adams County
  • Adel
  • Akron
  • Albia
  • Algona
  • Allamakee County
  • Allison
  • Alta
  • Alton
  • Altoona
  • Ames
  • Anamosa
  • Ankeny
  • Aplington
  • Appanoose County
  • Arnolds Park
  • Asbury
  • Atkins
  • Atlantic
  • Audubon
  • Audubon County
  • Avoca
  • Baxter
  • Bedford
  • Belle Plaine
  • Bellevue
  • Belmond
  • Benton County
  • Bettendorf
  • Black Hawk County
  • Bloomfield
  • Blue Grass
  • Bondurant
  • Boone
  • Boone County
  • Bremer County
  • Britt
  • Brooklyn
  • Buchanan County
  • Buena Vista County
  • Buffalo
  • Buffalo (historical)
  • Burlington
  • Butler County
  • Calhoun County
  • Camanche
  • Carlisle
  • Carroll
  • Carroll County
  • Carter Lake
  • Cascade
  • Cass County
  • Cedar County
  • Cedar Falls
  • Cedar Rapids
  • Center Point
  • Centerville
  • Central City
  • Cerro Gordo County
  • Chariton
  • Charles City
  • Cherokee
  • Cherokee County
  • Chickasaw County
  • Clarinda
  • Clarion
  • Clarke County
  • Clarksville
  • Clay County
  • Clayton County
  • Clear Lake
  • Clinton
  • Clinton County
  • Clive
  • Colfax
  • Columbus Junction
  • Conrad
  • Coon Rapids
  • Coralville
  • Corning
  • Corydon
  • Council Bluffs
  • Crawford County
  • Cresco
  • Creston
  • Dakota City
  • Dallas Center
  • Dallas County
  • Davenport
  • Davis County
  • De Soto
  • De Witt
  • Decatur County
  • Decorah
  • Delaware County
  • Denison
  • Denver
  • Des Moines
  • Des Moines County
  • Dickinson County
  • Dike
  • Dubuque
  • Dubuque County
  • Durant
  • Dyersville
  • Dysart
  • Eagle Grove
  • Earlham
  • Eddyville
  • Eldora
  • Eldridge
  • Elk Run Heights
  • Elkader
  • Ely
  • Emmet County
  • Emmetsburg
  • Epworth
  • Estherville
  • Evansdale
  • Fairbank
  • Fairfax
  • Fairfield
  • Farley
  • Fayette
  • Fayette County
  • Floyd County
  • Forest City
  • Fort Dodge
  • Fort Madison
  • Franklin County
  • Fremont County
  • Garner
  • George
  • Gilbert
  • Glenwood
  • Glidden
  • Granger
  • Greene
  • Greene County
  • Greenfield
  • Grimes
  • Grinnell
  • Grundy Center
  • Grundy County
  • Guthrie Center
  • Guthrie County
  • Guttenberg
  • Hamburg
  • Hamilton County
  • Hampton
  • Hancock County
  • Hardin County
  • Harlan
  • Harrison County
  • Hartley
  • Hawarden
  • Henry County
  • Hiawatha
  • Holstein
  • Howard County
  • Hudson
  • Hull
  • Humboldt
  • Humboldt County
  • Huxley
  • Ida County
  • Ida Grove
  • Independence
  • Indianola
  • Iowa City
  • Iowa County
  • Iowa Falls
  • Jackson County
  • Jasper County
  • Jefferson
  • Jefferson County
  • Jesup
  • Jewell
  • Johnson County
  • Johnston
  • Jones County
  • Kalona
  • Keokuk
  • Keokuk County
  • Keosauqua
  • Kingsley
  • Knoxville
  • Kossuth County
  • La Porte City
  • Lake City
  • Lake Mills
  • Lake Panorama
  • Lake Park
  • Lake View
  • Lamoni
  • Laurens
  • Le Claire
  • Le Mars
  • Lee County
  • Lenox
  • Leon
  • Linn County
  • Lisbon
  • Logan
  • Lone Tree
  • Louisa County
  • Lucas County
  • Lyon County
  • Madison County
  • Madrid
  • Maharishi Vedic City
  • Mahaska County
  • Malvern
  • Manchester
  • Manly
  • Manning
  • Manson
  • Mapleton
  • Maquoketa
  • Marcus
  • Marengo
  • Marion
  • Marion County
  • Marshall County
  • Marshalltown
  • Mason City
  • Mechanicsville
  • Mediapolis
  • Melcher-Dallas
  • Milford
  • Mills County
  • Missouri Valley
  • Mitchell County
  • Mitchellville
  • Monona
  • Monona County
  • Monroe
  • Monroe County
  • Montezuma
  • Montgomery County
  • Monticello
  • Mount Ayr
  • Mount Pleasant
  • Mount Vernon
  • Moville
  • Muscatine
  • Muscatine County
  • Nashua
  • Nevada
  • New Hampton
  • New London
  • New Sharon
  • Newton
  • Nora Springs
  • North English
  • North Liberty
  • Northwood
  • Norwalk
  • O'Brien County
  • Oakland
  • Oelwein
  • Ogden
  • Onawa
  • Orange City
  • Osage
  • Osceola
  • Osceola County
  • Oskaloosa
  • Ottumwa
  • Page County
  • Palo
  • Palo Alto County
  • Panora
  • Park View
  • Parkersburg
  • Paullina
  • Pella
  • Peosta
  • Perry
  • Pleasant Hill
  • Pleasantville
  • Plymouth County
  • Pocahontas
  • Pocahontas County
  • Polk City
  • Polk County
  • Postville
  • Pottawattamie County
  • Poweshiek County
  • Prairie City
  • Preston
  • Primghar
  • Red Oak
  • Reinbeck
  • Remsen
  • Ringgold County
  • Riverside
  • Robins
  • Rock Rapids
  • Rock Valley
  • Rockwell
  • Rockwell City
  • Roland
  • Sac City
  • Sac County
  • Saint Ansgar
  • Sanborn
  • Saylorville
  • Scott County
  • Sergeant Bluff
  • Sheffield
  • Shelby County
  • Sheldon
  • Shell Rock
  • Shenandoah
  • Sibley
  • Sidney
  • Sigourney
  • Sioux Center
  • Sioux City
  • Sioux County
  • Slater
  • Solon
  • Spencer
  • Spirit Lake
  • Springville
  • State Center
  • Storm Lake
  • Story City
  • Story County
  • Strawberry Point
  • Stuart
  • Sumner
  • Tama
  • Tama County
  • Taylor County
  • Tiffin
  • Tipton
  • Toledo
  • Traer
  • Tripoli
  • Union County
  • University Heights
  • Urbana
  • Urbandale
  • Van Buren County
  • Van Meter
  • Villisca
  • Vinton
  • Walcott
  • Walford
  • Wapello
  • Wapello County
  • Warren County
  • Washington
  • Washington County
  • Waterloo
  • Waukee
  • Waukon
  • Waverly
  • Wayne County
  • Webster City
  • Webster County
  • Wellman
  • West Branch
  • West Burlington
  • West Des Moines
  • West Liberty
  • West Union
  • Williamsburg
  • Wilton
  • Windsor Heights
  • Winfield
  • Winnebago County
  • Winneshiek County
  • Winterset
  • Woodbine
  • Woodbury County
  • Woodward
  • Worth County
  • Wright County

Commercial Loan FAQs in Iowa

Multifamily interest rates in Iowa vary based on loan type, property type, loan-to-value, debt service coverage ratio, borrower strength, and market conditions. They range from approximately 4.93% to 12.95%.

Borrowers in Iowa can access Conventional, CMBS/Conduit, Insurance, FHA/HUD, USDA, Bridge, Construction, and SBA financing based on property type, leverage, and occupancy.

Multifamily loan rates in Iowa depend on loan type, property cash flow, debt service coverage ratio, loan-to-value, borrower strength, and market conditions.

Yes. Owner-occupied financing is available in Iowa, including Conventional, Insurance, SBA, USDA, and selected agency programs when eligibility requirements are met.

Yes. Refinance options in Iowa include rate-and-term and cash-out structures, subject to underwriting, property performance, and lender program guidelines.

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