Commercial Real Estate Financing in Iowa

Commercial Loan Direct (CLD) provides commercial real estate loans in the state of Iowa. Current commercial loan rates in Iowa range from 5% to 12.95%, depending on the loan program. CLD is a national commercial mortgage banker offering aggressively priced programs and superb service. CLD originates loans for its parent company CLD Financial which provides a wide variety of lending vehicles. Our company is currently targeting owner occupied and investment properties over $1 Million in the state of IA.

Iowa Commercial Loan Rates

Loan Types Rates LTV Loan Amount Occupancy
Conventional 5% - 8.95% 80% $1,000,000+ Investment + Owner Occupied
Conduit / CMBS 5.9% - 7.86% 75% $2,000,000+ Investment
Insurance 5.3% - 8.68% 75% $5,000,000+ Investment + Owner Occupied
FHA / HUD 4.94% - 6.29% 83.3% $5,000,000+ Investment
USDA 5.45% - 9.8% 85% $1,000,000+ Investment + Owner Occupied
Bridge 5.95% - 12.95% 80% $1,500,000+ Investment
Construction 5.7% - 8.95% 83.3% $1,000,000+ Investment
SBA 5.45% - 8.95% 85% - 90% $1,000,000+ Owner Occupied

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.

Types of Commercial Loans in Iowa

Investment Property Mortgages

The types of mortgages available for these types of properties are Conventional, CMBS / Conduit, Insurance, and Agency (FHA / HUD and USDA) products. Bridge and/or Construction mortgages are also available on a case-by-case basis in order to reposition, stabilize or construct buildings. Commercial real estate investment properties can include office, retail, industrial/warehouse, self-storage, healthcare (medical office, skilled nursing facility, memory care, hospitals), hospitality, (hotel, motel, resort), and mixed use.

Owner Occupied Commercial Mortgages

Owner-Occupied commercial real estate properties in which the owner occupies at least 50% of the premises and can include office, retail, industrial/warehouse, self-storage, healthcare (medical office, skilled nursing facility, memory care, hospital), hospitality (hotel, motel, resort), mixed use, or any other type of commercial property. The types of mortgages available for owner-occupied buildings include Conventional, Insurance, and Agency programs including FHA / HUD, SBA, and USDA. Construction mortgages are also available on a case-by-case basis in order to develop or reposition a property for the owner's use.

Commercial loan landscape in Iowa (high-level snapshot)

Iowa’s commercial lending market is stable, conservative, and relationship-driven. Capital is available through community and regional banks, but underwriting focuses on cash-flow reliability, borrower strength, and straightforward deal structures. Lenders tend to favor predictable local demand over aggressive growth or speculative strategies.

What lenders are most comfortable financing

Owner-occupied properties are among the most lender-friendly transactions in Iowa, especially when backed by established operating businesses with consistent historical cash flow.

Industrial, agricultural, and manufacturing-related properties underwrite well when tied to food processing, equipment manufacturing, logistics, and regional supply chains.

Essential retail and service properties (medical offices, grocery-adjacent centers, fuel stations, local service businesses) are viewed favorably due to steady demand.

Where underwriting gets tougher

Office properties are underwritten cautiously, particularly older buildings or properties in smaller cities with limited tenant depth.

Value-add and transitional deals face tighter leverage and higher equity requirements, especially if they rely on aggressive lease-up or rent growth assumptions.

Speculative development is generally difficult to finance without significant pre-leasing or substantial borrower equity.

Market-by-market dynamics (how lenders tend to think)

Des Moines Metro: The most lender-active market in the state, with better appetite for industrial, owner-occupied, and stabilized multifamily assets.

Cedar Rapids and Iowa City: Stable lending environment supported by education, healthcare, and manufacturing, with conservative underwriting standards.

Secondary and rural markets: Financing is highly relationship-driven, with lower leverage and emphasis on essential-use properties.

Who is lending in Iowa (and what that means for terms)

Community and regional banks dominate commercial lending. Relationships, deposit ties, and borrower reputation are key approval drivers.

Credit unions can be competitive for owner-occupied and smaller-balance loans.

National and institutional lenders participate selectively, usually for larger, stabilized assets in primary markets.

Key underwriting themes unique to Iowa

Cash-flow stability is prioritized over projected growth.

Tenant concentration risk is closely reviewed, particularly for single-tenant properties.

Sponsor experience and liquidity play a major role in credit decisions.

What “good” looks like to an Iowa lender right now

A strong Iowa loan request typically includes conservative leverage, stable historical NOI, strong guarantors, and a straightforward business plan.

Deals built on aggressive assumptions or rapid repositioning strategies tend to struggle.

Bottom line

Iowa is a capital-available but conservative lending market. Owner-occupied, industrial, and essential-use properties offer the clearest paths to financing, while office and speculative projects face tighter underwriting.

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

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

Commercial 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 5% 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.

Commercial 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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