Find the Best Mortgage Lenders in Sioux City, IA

Different types of home loans in Sioux City

With so many things to consider when buying a home, finding the right type of mortgage can seem daunting. However, the specifics of your mortgage, including interest rates, loan terms and down payments, significantly affect how much you pay in total, so it’s worth getting them right.

To help your search, here a few of the most common types of mortgages:

• Conventional mortgages: A conventional home loan is a type of mortgage offered by private lenders that is not backed by the government. They are one of the most common types of home loans because they are flexible and more people are eligible to receive them.
• Fixed-rate mortgages: A fixed-rate mortgage is a type of loan with a static interest rate throughout the loan term. A fixed-rate home loan is a good option if you’re buying your home when rates are relatively low and you want consistent budgeting in the future.
• Adjustable-rate mortgages: Adjustable-rate mortgages have interest rates that increase or decrease over time, depending on the market. ARMs often come with a fixed introductory period where interest rates are low. After that period, rates usually go up, though. These loans are better for borrowers that want more flexibility and lower payments at the beginning of their loan periods, like new parents or young professionals.
• Jumbo loans: Jumbo mortgages are needed for homes over the conforming loan limit. In Woodbury County, the jumbo loan limit is $510,400 at the time of publishing, according to the Federal Housing Finance Agency. However, with house prices so low here, it’s not common for residents to need a jumbo mortgage in Sioux City.
• FHA loans: A Federal Housing Administration-backed home loan is a government-insured mortgage for low- to moderate-income borrowers with poor credit. These loans require a minimum down payment of 3.5%, but borrowers can be approved with credit scores as low as 580 at the time of publishing.
• USDA loans: U.S. Department of Agriculture-backed loans can be a good option for low- to moderate-income borrowers who want to live in qualifying rural areas, like some places across the state line in North Sioux City.
• VA loans: Department of Veterans Affairs-backed loans are designed to help military members, veterans and their families qualify for better loans. Two of the biggest benefits of VA home loans include no down payment or mortgage insurance requirements. With the Sioux City Air National Guard Base located in city limits, many families here may qualify for a VA home loan.

It’s worth mentioning that these loan types are not mutually exclusive. For example, you could have a conventional mortgage with either fixed or adjustable interest rates.

Average mortgage rates in Sioux City

Average mortgage rates in Sioux City fall between 2.76% and 3.37% at the time of publishing, according to S&P Global. Where your loan falls relative to this average depends on a number of factors.

Your credit score is one of the biggest determining factors for your interest rate. Other factors that can help you get a lower mortgage rate include putting more money down and finding the right type of mortgage for your needs. You may also consider mortgage points, which are fees you pay to your lender before you borrow in order to lower your interest rate.

Sioux City home loan FAQ

How much is a house in Sioux City?

The median house price in Sioux City is $121,323 at the time of publishing, according to Zillow. However, home prices in Sioux City can range from $46,000 to $850,000. Homes southeast of Sioux City are generally more expensive because the developments are newer and lots are larger.

Can you negotiate a lower mortgage rate?

Yes, you can negotiate a lower mortgage rate, especially if you have a good credit history. It might not be able to move a lot, but any improvement saves you money.

How do I get preapproved for a mortgage?

To get preapproved, you need to fill out an application with a lender. They should also pull your credit and ask for a lot of information, including your income and assets. Lenders are required by law to provide your loan estimate within three business days.

What is the average mortgage in Sioux City?

The median home price in Sioux City is around $120,000 at the time of publishing. Assuming you put 20% down and have an interest rate of 3.2%, you would borrow $96,000 and pay back a total amount of $149,461 after 30 years, not including fees.