Loan Officer in Des Moines, IA

Here is a comprehensive career guide for Loan Officers considering Des Moines, Iowa.

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If you’re a Loan Officer eyeing the Midwest, Des Moines often flies under the radar. But as the insurance and financial services hub of the region, it offers a stable market, a low cost of living, and a quality of life that’s hard to beat. I’ve been working in the Des Moines metro for over a decade, and I’ve seen the lending landscape evolve from the post-recession recovery to the current high-rate environment. This guide isn’t a sales pitch; it’s a data-driven look at what it really takes to build a successful career here.

The Salary Picture: Where Des Moines Stands

As a Loan Officer in Des Moines, you’re not in a top-tier salary market like New York or San Francisco, but you’re also not in a high-cost area. Your earning potential is solid, especially when you factor in the local cost of living. The financial sector here is dominated by insurance giants and regional banks, which sets a consistent wage floor.

The median salary for a Loan Officer in Des Moines is $74,531 per year, which breaks down to an hourly rate of $35.83. This is slightly below the national average of $76,200, but that gap is misleading. When you adjust for Des Moines's cost of living—which is significantly lower than the national average—a median salary here goes much further. The job market is active, with 420 positions available in the metro area and a modest 10-year job growth of 3%. This isn’t a boomtown for lending, but it’s a steady, reliable market.

Experience-Level Breakdown

Your salary in Des Moines will be heavily influenced by your experience, your specialty (e.g., residential mortgages vs. commercial lending), and your commission structure. Here’s a realistic breakdown:

Experience Level	Estimated Annual Salary	Key Responsibilities
Entry-Level (0-2 years)	$50,000 - $60,000	Loan processing support, junior underwriting, initial client consultations. Often base-heavy with a small commission bonus.
Mid-Level (3-7 years)	$70,000 - $85,000	Managing a full client portfolio, independent underwriting, building referral networks with realtors. Base + commission model is standard.
Senior-Level (8-15 years)	$90,000 - $120,000+	Specializing in complex loans (Jumbo, VA, USDA), mentoring junior officers, managing key accounts. Heavily commission-driven.
Expert/Manager (15+ years)	$130,000 - $160,000+	Branch management, regional sales director, corporate strategy. Mix of salary, bonus, and profit-sharing.

Comparison to Other Iowa Cities

How does Des Moines stack up against other Iowa metros? It’s the leader, but not by a wide margin.

• Cedar Rapids: Salaries are slightly lower (median ~$70,000), with a smaller job market focused more on manufacturing and healthcare financing.
• Davenport (Quad Cities): Similar to Cedar Rapids, with a median around $71,000. The market is a mix of residential and agricultural loans.
• Iowa City: Home to the University of Iowa, so student and faculty loans are a niche. Salaries are competitive with Des Moines, around $73,000, but the market is smaller.
• Sioux City: Salaries trend lower, near $68,000, with a stronger emphasis on agricultural and small business lending.

Insider Tip: The real money in Des Moines isn’t necessarily in the base salary. It’s in the commission and bonus structure. Top performers at major mortgage shops or commercial banks can easily clear $100,000 after a few years, especially if they build strong relationships with local real estate agents. The best way to gauge potential pay is to ask about the commission split during interviews.

The Real Take-Home: After Taxes and Rent

Let’s get practical. A $74,531 salary sounds good, but what’s left after Uncle Sam and the landlord take their share? Des Moines’s affordability is its biggest selling point.

For a single filer (2024 tax brackets), take-home pay after federal tax, FICA (7.65%), and Iowa state income tax (4.4% for this bracket) would be approximately $58,000 annually, or about $4,833 per month.

Now, let’s budget for a typical Loan Officer lifestyle. We’ll assume a one-bedroom apartment. The average 1BR rent in Des Moines is $899/month, but this varies by neighborhood (see section below).

Monthly Budget Breakdown (Loan Officer: $74,531 Salary)

Expense Category	Estimated Cost	Notes
Net Pay (After Taxes)	$4,833	Based on single filer, no dependents.
Rent (1BR Average)	$899	Can range from $750 to $1,200+ depending on area.
Utilities (Elec/Gas/Water)	$150	Iowa winters mean higher heating bills.
Internet/Cell Phone	$120	Competitive market, good service.
Car Payment/Insurance	$450	Assumes a moderate car payment and full coverage.
Groceries & Household	$400	Reasonable for a single person.
Health Insurance (if not covered)	$200	Varies widely; many employers offer good plans.
Miscellaneous (Going out, etc.)	$500	Des Moines has a great food scene; this is a realistic discretionary budget.
Total Monthly Expenses	$2,719
Monthly Savings/Investments	$2,114	Over $25,000/year in savings potential.

Can they afford to buy a home? Absolutely. With over $2,000 in monthly savings, saving for a down payment is achievable. A 20% down payment on a median-priced Des Moines home (~$230,000) is $46,000. At the savings rate above, you could reach that in under two years. Plus, as a Loan Officer, you’ll have insider knowledge of mortgage products, making the process smoother.

Where the Jobs Are: Des Moines’s Major Employers

Des Moines is the insurance capital of the United States, which directly translates to stable, well-paying jobs in financial services and lending. The job market here is less about tech startups and more about established corporate institutions.

1. Wells Fargo Home Mortgage: While they’ve scaled back nationally, their Des Moines campus (in West Des Moines) remains a massive employer for mortgage loan officers and underwriters. They have a deep local presence and often hire from within.
2. Principal Financial Group: A global financial services leader headquartered in downtown Des Moines. They primarily hire for commercial lending, retirement plan loans, and internal mortgage services for employees. Their hiring trends are stable, with a focus on experienced professionals.
3. Bankers Trust: A locally owned and managed commercial bank in Des Moines. They are a key player for small business and commercial real estate loans. They have a reputation for strong community ties and often promote from within. Hiring is steady but selective.
4. MidWestOne Bank: Headquartered in Iowa City but with a significant presence in Des Moines. They focus on consumer and commercial lending and are known for a more personalized, community-focused approach. Good for Loan Officers who want to build long-term client relationships.
5. US Bank (Mortgage Division): US Bank has a major processing center in the Des Moines metro. They are a consistent recruiter for mortgage loan originators, especially those with experience in government-backed loans (FHA, VA, USDA).
6. Iowa Credit Union League (and affiliates like Veridian Credit Union): Credit unions are huge in Iowa. They often hire for member-focused loan officers for auto, home, and personal loans. The environment is less corporate, and the commission structures can be very competitive.
7. Iowa Realty & Local Mortgage Brokerages: While not a single employer, the network of local realty companies (like Iowa Realty, RE/MAX, etc.) and independent mortgage brokers is the lifeblood of the residential market. Building relationships here is key for commission-based success.

Hiring Trends: The market is currently cautious due to high interest rates, which has slowed mortgage origination volume. However, there is still steady demand for experienced commercial loan officers and those who can manage a diverse portfolio. Local banks and credit unions are generally more stable than large national lenders during market shifts.

Getting Licensed in Iowa

You cannot legally originate loans in Iowa without the proper license. The process is managed by the Iowa Division of Banking. It’s straightforward but requires an upfront investment of time and money.

Step 1: Pre-Licensing Education
You must complete 20 hours of NMLS-approved pre-licensing education. This includes 3 hours of Iowa-specific law. The course is typically taken online and costs between $300 and $500.

Step 2: National & State Exams
After your education is complete, you’ll schedule the Nationwide Multistate Licensing System (NMLS) exam.

• National Exam (SAFE MLO Test): 125 questions, 190-minute time limit. Pass rate is challenging; study hard.
• Iowa State Exam: This is an open-book test on Iowa laws and regulations. It’s easier than the national exam but still requires preparation.
  Exam fees are $80 for the national test and $150 for the Iowa state test (total: $230).

Step 3: Background Check & Application
You’ll need to submit fingerprints for a criminal background check (cost ~$50). Then, you’ll apply for your license through the NMLS. Your employing broker will sponsor your application, which involves additional fees (approx. $200 for state licensing).

Total Estimated Cost to Get Licensed: $800 - $1,200 (including education, exams, and fees).
Timeline: From starting education to having your license in hand, expect 3 to 4 months if you study diligently and pass exams on the first try.

Insider Tip: Many large employers in Des Moines (like Wells Fargo or Principal) offer sponsorship and reimbursement for these costs if you’re hired as a trainee. It’s worth asking about during interviews.

Best Neighborhoods for Loan Officers

Where you live in Des Moines impacts your commute, networking opportunities, and lifestyle. Here are four areas that work well for Loan Officers.

1. Downtown Des Moines (DSM):

   • Commute: Walk or bike to major employer headquarters (Principal, Wells Fargo). Minimal commute.
   • Lifestyle: Urban, walkable, vibrant nightlife. Home to the Principal Park baseball stadium and the East Village’s boutique shops and restaurants.
   • Rent Estimate: $1,100 - $1,500/month for a 1BR. Premium for location.
   • Best For: Young professionals who want to be in the heart of the financial district and social scene.

2. West Des Moines (Including Valley Junction):

   • Commute: 10-20 minute drive to downtown. Easy highway access (I-80/35).
   • Lifestyle: More suburban, family-friendly, with excellent schools. Valley Junction offers a charming, historic main street with local shops.
   • Rent Estimate: $900 - $1,200/month for a 1BR.
   • Best For: Those who want a balance of city access and suburban comfort, or who are looking to buy a home soon.

3. Beaverdale:

   • Commute: 10-15 minutes to downtown.
   • Lifestyle: A quiet, established neighborhood with tree-lined streets and mid-century homes. It’s close to Gray’s Lake Park and has a strong community feel.
   • Rent Estimate: $850 - $1,100/month for a 1BR (often in older, well-kept buildings).
   • Best For: Loan Officers seeking a peaceful, stable environment without a long commute.

4. The East Village:

   • Commute: 5-10 minute walk or bike to downtown offices.
   • Lifestyle: Eclectic and artsy, with a growing reputation for trendy restaurants, galleries, and loft-style living. It’s the most "up-and-coming" area.
   • Rent Estimate: $1,000 - $1,400/month for a modern 1BR.
   • Best For: The professional who values culture, walkability, and being near the action.

The Long Game: Career Growth

In Des Moines, career growth for a Loan Officer isn’t about rapid job-hopping; it’s about deepening expertise and building a strong local network.

Specialty Premiums:

• Commercial Real Estate (CRE) Lending: This is where the highest earnings potential lies. Des Moines has a growing downtown and suburban commercial market. An experienced CRE loan officer can command a higher base salary and significantly larger commissions.
• SBA Lending: Specializing in Small Business Administration loans is a valuable niche. Local banks like Bankers Trust and credit unions are always looking for officers who can navigate the SBA’s complex application process.
• USDA & VA Loans: With rural areas surrounding the metro and a significant veteran population (thanks to the nearby VA Hospital), expertise in these government-backed loans is a consistent source of business.

Advancement Paths:

1. The Specialist: You stay in origination but focus on a high-value niche (CRE, SBA). Your income grows with your deal size.
2. The Manager: After 7-10 years, you move into a Branch Manager or Sales Manager role. Your focus shifts from closing your own loans to managing a team, with a higher base salary and bonus based on team performance.
3. The Corporate Path: You move from sales to an underwriting, risk management, or product development role at a large bank or insurance company (like Principal). This path offers a stable salary and benefits but caps the commission potential.

10-Year Outlook: The 3% job growth is modest, indicating a stable but not explosive market. Automation and AI will handle more routine processing, but the human element—building trust, explaining complex products, and navigating local relationships—will remain critical. The most successful Loan Officers in 2034 will be those who are tech-savvy but also deeply embedded in the Des Moines community.

The Verdict: Is Des Moines Right for You?

Deciding to move your career to Des Moines is a lifestyle choice as much as a professional one. Here’s the bottom line.

Pros	Cons
Low Cost of Living: Your $74,531 salary provides a comfortable, middle-class lifestyle with significant savings potential.	Slower Market Growth: The 3% job growth isn’t a boom. You’ll need patience and strong networking to stand out.
Stable Job Market: Anchored by insurance and banking giants, the market is less volatile than in tech-heavy cities.	Commission Can Be Cyclical: In high-rate environments, mortgage origination slows. Commercial lending is more stable.
Excellent Work-Life Balance: Short commutes, accessible parks (like Gray’s Lake), and a family-friendly culture.	Limited High-End Luxury: If you’re looking for the ultra-competitive, high-stakes lending environment of NYC or Chicago, this isn’t it.
Strong Community Network: It’s easy to build a reputation and get referrals in a mid-sized city where people know each other.	Winter Weather: Be prepared for cold, snowy winters from November to March.

Final Recommendation: Des Moines is an excellent choice for a Loan Officer who values stability, affordability, and quality of life over chasing the highest possible national salary. It’s ideal for:

• Mid-career professionals looking to buy a home and build long-term wealth.
• Those who want to specialize in commercial or agricultural lending.
• Anyone seeking a manageable pace without sacrificing career opportunity.

If you’re driven by commission, willing to network relentlessly, and don’t mind the Midwest winters, Des Moines offers a fantastic foundation for a sustainable, rewarding career.

FAQs

1. Can I make a six-figure salary as a Loan Officer in Des Moines?
Yes, but it’s not the norm for everyone. The median salary is $74,531, but top performers in commercial lending or those who build a massive referral network in residential mortgages can easily exceed $100,000. It typically takes 5-7 years of experience and a strong book of business.

2. Do I need a college degree to be a Loan Officer here?
Legally, no. Iowa licensing requires pre-licensing education and passing exams, not a degree. However, most major employers (banks, insurance companies) prefer candidates with a bachelor’s in finance, business, or a related field. It can be a significant advantage.

3. How competitive is the residential mortgage market in Des Moines?
It’s competitive but not cutthroat. The key is building relationships with local real estate agents and credit unions. The market is large enough for many players but small enough that your reputation matters. A bad deal or a missed closing can follow you.

4. What’s the best way to find a job as a Loan Officer in Des Moines?
Start with the major employers listed above (Wells Fargo, Principal, Bankers Trust). Also, check the Iowa Credit Union League job board and local real estate association websites. Networking is crucial—attend events hosted by the Iowa Mortgage Professionals