Home Equity Loans & HELOCs in Iowa

Through October 31, 2026, FSB is offering a 5.99% fixed rate on home equity loans (up to 66 months) and fixed-rate HELOCs (60-month term). The bank covers eligible closing costs up to $600. A minimum loan amount of $15,000, a credit score of 690 or higher, and a maximum loan-to-value of 85% apply.^*

You can typically borrow up to 85% of your home's appraised value, minus any existing mortgage balance. The exact amount depends on your credit score, income, debt-to-income ratio, and the property type. A strong financial profile can help you qualify for a higher amount and better terms.

A home equity loan gives you a one-time lump sum at a fixed interest rate with a set repayment schedule. A HELOC works more like a revolving credit line where you borrow against an approved limit as needed. A home equity loan is best when you know the exact amount you need. A HELOC is best when you want ongoing flexibility.

A home equity loan lets you borrow against the value you've built in your home. You receive a lump sum with a fixed interest rate and fixed monthly payment. It's a straightforward way to fund a major expense with payments you can plan around. Learn more about FSB's lending options.

A Home Equity Line of Credit (HELOC) gives you flexible access to your home's equity. Instead of one lump sum, you draw funds as needed up to your approved limit during the draw period. You pay interest only on the amount you use. When the draw period ends, you repay the balance over a set term.

Lenders review your credit history, income, existing debts, and how much equity you have in your home. They want to see that you can comfortably manage the new payment alongside your current obligations. A solid credit history, steady income, and lower debt-to-income ratio improve your chances of approval and favorable terms.

Yes. Many borrowers use a home equity loan to consolidate high-interest credit card balances or other debts into a single, fixed monthly payment. Because home equity rates are typically lower than credit card rates, this can reduce what you pay in interest over time. Learn more about debt consolidation with FSB.

Home equity is the difference between your home's current value and the amount you still owe on loans secured by the property. For example, if your home is worth $250,000 and you owe $150,000, you have approximately $100,000 in home equity.

Home equity interest may be tax-deductible in certain situations, such as when the funds are used for qualifying improvements to the home securing the loan. Tax rules vary, so you should consult a qualified tax advisor about your specific situation.

You can apply online or visit any FSB branch in Marion, Hiawatha, Cedar Rapids, or Tiffin. Every application is reviewed locally by an FSB lender.