Iowa is home to a little over three million people. The average home sells for $135,000, which makes it one of the more affordable states in America. Roughly 70 percent of all residents living in Iowa own their own properties, which is why so many have built solid equity in their homes. Appreciation values in Iowa have gone up in recent years with Massena and Orient being the two cities most affected by this increase.

Information on HELOCs

There comes a point in all of our lives when we need a solid credit line to fall back on in times of emergency. HELOCs are totally different from regular credit cards because you are using your home as direct collateral to take out a line of credit that is worth 85 percent of the value of your property. You can draw on this amount at virtually any time using a bank-issued card or checkbook. It is important to use your HELOC in a responsible manner because you’ll be required to pay everything back that you receive with interest included.

Advantages to Opening a HELOC

One of the main advantages to opening a HELOC as opposed to a typical credit card is the amount you’re able to have access to. The average credit card has a draw limit of about $15,000 before you can no longer receive money. HELOC accounts are worth almost the full amount of what your home has been assessed at. This is an enormous amount that can come in handy during times of need. Another key benefit to a HELOC account is that a homeowner’s credit score isn’t the sole deciding factor during the application process. Even homeowners with bad credit scores have been approved for home equity lines of credit because their home was considered more of a liability than their FICO score.

Applying for a New Line of Credit

The application process to receive a HELOC is almost identical to what you’d find when applying for a regular credit card. You’ll be asked to provide personal information and documentation proving that you’re the owner of your home and specifics regarding the length of time you’ve owned it. The bank will then determine if you are a viable candidate for your new line of credit. You should expect to hear back from the bank within a few weeks to about two months.

Additional Fine Print on HELOC Accounts

HELOC accounts are better for homeowners looking to open a credit line that provides them with tens or hundreds of thousands of dollars. With the good also comes the bad and you’ll need to familiarize yourself with your specific bank’s guidelines before signing along the dotted line and getting locked into an account. If you should ever sell your home while the HELOC is still in your name, you’ll be fully responsible for paying it back in full with interest. Your home is also on the line if your account should ever become delinquent. This means that the bank has all right to take possession of your house if you don’t pay back the amount you’ve borrowed. Comparing rates with different banks gives you the opportunity to find a credit line that fits your budget and financial needs.

Banks in Iowa Offering HELOCs

Below is a list of some of the top banks in Iowa offering home equity line of credit accounts:

• First Midwest Bank
• Bank of the West
• US Bank
• Bank of America
• Farmers State Bank
• United Nations Bank