Hills Bank was founded in 1904 in Hills, Iowa as a local savings bank. Surviving the Great Depression and continuing to serve locals, Hills Savings Bank became Hills Bank and Trust Company in 1934.
While the bank itself is over a hundred years old, much of its growth has happened since the 1980s.
Hills Bank’s mortgage options include fixed- and adjustable-rate conventional loans, FHA, VA, IFA, USDA, lot, construction, bridge, and other mortgage loan options.
In this review, we will discuss how Hills Bank stacks up against the competition. Find out if Hills Bank is a good option for your next mortgage.
Table of Contents
Hills Bank Mortgage Highlights
- Fixed and adjustable-rate, FHA, VA, IFA, USDA, lot, construction, bridge loans, and other mortgage options.
- 100 percent financing loans available.
- Hills Bank is one of Iowa’s largest independent banks.
- A variety of local and state mortgage assistance programs and special loan options are available.
- Pre-approval is offered, so borrowers know what they qualify for as they shop for a home.
- Medical and dental resident mortgage programs are available.
- Flexible appointments with loan officers are available, even on Saturdays.
- States serviced: Located in Iowa State, serving customers in three different counties, Johnson County, Lin County, and Washington County. Branches are located in four different cities: Lisbon, Marion, Cedar Rapids, and Mt Vernon.
History of Hills Bank
Hills Bank, founded in 1904 in Hills, Iowa, is one of the state’s largest independent banks. Surviving the Great Depression, the bank continued to grow and serve local people after many other Iowa banks failed.
Hills Bank was initially a savings bank, but quickly expanded its services and decided in 1934 to become Hills Bank and Trust Company in response to the changes.
The lender has been around for over a hundred years, but Hills Bank’s growth was limited by Iowa banking laws until the 1980s.
With the opportunity to expand to other areas now available, Hills Bank rapidly grew and started operating outside Johnson County with new branch openings.
Hills Bank has a variety of flexible loan options for borrowers, including many state and local loan types designed to promote economic growth and stability. Applicants can learn more about Hills Bank mortgages from their online Mortgage Resource Center.
Currently, Hills Bank is not reviewed on Trustpilot and does not have an overall BBB rating or reviews, although individual branches may have review pages.
Loans Offered by Hills Bank
The following types of loans are offered by Hills Bank. Each type of loan has different characteristics that will help you determine if it is the best option for you.
Fixed-Rate Loans
With fixed-rate mortgages, borrowers know what to expect because their loan payments and rates remain the same every month for the life of the loan.
This is a fantastic option for applicants who want to lock in a low rate or keep the same home for several years. At Hills Bank, borrowers can apply for 15 and 30-year fixed-rate loans.
Adjustable-Rate Loans
Adjustable-rate mortgages have rates that are subject to change with market conditions. While these loans may start with one rate, that rate may go up or down later.
This can cause mortgage payments to increase or decrease without warning, potentially leading borrowers to end up paying more for their homes than they expected.
Applicants who are planning to stay in their home for only a few years or who plan to sell or refinance in the near future may benefit from an adjustable-rate mortgage.
FHA Mortgage Loans
Federal Housing Administration (FHA) loans from Hills Bank are backed by the U.S. government so they offer more affordable financing options.
These mortgages and refinance loans provide low monthly payments and typically offer lower down payment options. Applicants who meet the qualifications may pay as little as 3.5 percent down on a fixed- or adjustable-rate FHA mortgage.
VA Loans
Veterans, members of the armed forces, and surviving spouses may apply for a VA loan. The U.S. Department of Veterans Affairs guarantees these loans and offers an affordable loan opportunity with more favorable terms than what conventional loans provide.
Borrowers may qualify for a low or no down payment loan with a fixed or adjustable rate. Options that don’t require private mortgage insurance (PMI) are also available.
Construction or Lot Loans
Borrowers who are buying a new home and need a mortgage to fund the construction may benefit from a construction loan. The Hills Bank loan is approved and provided in advance so the builder can begin working on the new home right away.
Lot loans are also an option, allowing borrowers to purchase land that doesn’t have a structure or home constructed on it yet.
Bridge Loans
For applicants buying a home and selling their old property, bridge loans provide the funding to transition from one home to another so borrowers have a down payment before their home sells.
IFA Loans
Iowa Finance Authority (IFA) loans are state government-backed mortgages offering affordable home financing for Iowa residents. As little as 3 percent down or no down payment loans are available through this program.
Down payment, first-time homebuyer, and repeat homebuyer assistance are also options for qualifying applicants.
USDA Rural Development Loans
Borrowers may qualify for this government-backed loan program offering low and no-down payment options.
Medical and Dental Professional Loans
Hills Bank offers a special loan program for borrowers who are medical or dental residents.
Comprehensive Loan Offerings by Hills Bank
| Loan Type | Characteristics | Ideal for | Down Payment Options |
|---|---|---|---|
| Fixed-Rate Loans | Stable Monthly Payments for Loan Duration | Long-Term Home Ownership | 15 and 30-Year Terms |
| Adjustable-Rate Loans | Interest Rates Can Change, Affecting Payments | Short-Term Home Ownership or Refinancing | Variable |
| FHA Mortgage Loans | U.S. Government-Backed, Low Down Payment, Low Payments | Affordable Home Financing | As Low as 3.5% |
| VA Loans | Favorable Terms for Veterans and Active-Duty Members | Affordable Financing for Military | Low or No Down Payment |
| Construction or Lot Loans | Loans for Home Construction or Purchasing Land | Building a New Home or Buying Land | Varies |
| Bridge Loans | Funds for Transitioning Between Homes | Simultaneous Property Transactions | Varies |
| IFA Loans | State Government-Backed Loans for Iowa Residents | Low or No Down Payment Financing | 3% or No Down Payment |
| USDA Rural Development Loans | Government-Backed Loans with Low/No Down Payment | Rural Property Buyers Seeking Affordable Financing | Low or No Down Payment |
| Medical and Dental Professional Loans | Special Program for Medical and Dental Residents | Medical and Dental Residents | Varies |
Mortgage Customer Experience With Hills Bank
Hills Bank has many different loan options available for customers and substantial loan guidance on its website for borrowers interested in learning more about mortgages and refinance options.
Borrowers can visit the Hills Bank website and request an appointment with a loan officer to get started and be considered for pre-approval.
Applicants may start the pre-approval process over the phone or with a mortgage lender, but no online application is available at this time. Sample rates are posted online on the bank’s website, although online quotes are unavailable.
Typically, Hills Bank applicants will need information such as recent pay stubs and bank account statements to apply or get pre-approval.
They may be required to submit bank information, W2 forms, tax returns from previous years, pay stubs, asset documentation, and other supporting evidence for their applications. The exact requirements will depend on the type of loan and the borrower’s credit situation.
Mortgage Qualifications
As you can see below, your credit score plays a major role in the loan approval process.
| Credit Score | Quality | Ease of Approval |
|---|---|---|
| 760+ | Excellent | Easy |
| 700-759 | Good | Somewhat Easy |
| 621-699 | Fair | Moderate |
| 620 and below | Poor | Difficult |
| No credit score | N/A | Difficult |
With credit scores of 760 and higher, borrowers typically have the best chance of getting the loan they want and should have several different options to choose from.
Applicants with scores between 700 and 759 may not qualify for the most favorable options but should have a few different loans to choose from.
Borrowers with “fair” credit may need to consider an alternative loan option through Hills Bank and may not be offered the best loan choices.
Hills Bank does have loan options that borrowers with no credit history or low credit scores may qualify for, but there are typically few choices available for these applicants.
For the best possible loan options at Hills Bank, it helps to have substantial evidence of income and assets for a loan officer to review.
Debt-to-Income Ratio
The most favorable terms are typically offered to borrowers with debt-to-income (DTI) ratios at 30 percent or less. Applicants applying with higher DTIs should consider asking about Hills Bank’s alternative and government-backed loan programs to get the best offers possible.
| Debt-to-income ratio | Quality | Needs Improvement |
|---|---|---|
| 35% or less | Needs Improvement | Likely |
| 36-49% | Needs improvement | Possible |
| 50% or more | Poor | Possible |
Phone Number & Additional Details
Homepage URL: https://www.hillsbank.com/
Company Phone: 1-800-445-5725
Headquarters Address: Hills Bancorporation, 131 E Main Street, PO Box 160, Hills, Iowa 52235
The Bottom Line
Hills Bank, established in 1904, boasts a rich history and commitment to serving the Iowa community. As one of Iowa’s most prominent independent banks, it offers a comprehensive range of mortgage options tailored to diverse financial needs.
These options include conventional loans, government-backed loans, and specialized programs for medical and dental professionals.
Prospective borrowers benefit from pre-approval services, flexible appointment timings, and a plethora of resources on the bank’s website. However, a notable drawback is the absence of an online application feature.
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Product Name: Hills Bank Product Description: Hills Bank, founded in 1904 in Hills, Iowa, is a long-standing financial institution offering a diverse array of mortgage options. Renowned as one of Iowa's leading independent banks, it provides tailored financial solutions ranging from conventional to government-backed loans. Summary of Hills Bank Established over a century ago, Hills Bank has witnessed significant growth, especially since the 1980s, expanding its reach beyond its original base in Johnson County. Catering to a wide clientele, the bank offers everything from fixed- and adjustable-rate mortgages to specialized loan programs for medical and dental professionals. With a commitment to customer-centric services, they allow flexible appointments and provide comprehensive resources online, assisting potential homeowners in navigating their mortgage journey. Pros Cons
Hills Bank Review
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