Recent changes made to USDA Rural Development?s housing programs means rural Iowans can achieve their home ownership goals.
Earlier this year, USDA Rural Development?s housing programs expanded their mortgage limit to $220,532 (slightly above). The mortgage limit is up nearly $3,700 (thirty seven hundred) from last year?s limit. Tim Helmbrecht is the State Acting Director for USDA Rural Development in Iowa. Helmbrecht said the mortgage limit expansion is the result of a significant funding increase.
?We had an increase of nearly a million dollars over last year,? Helmbrecht said. ?It?s a great opportunity for folks, in a rural community, to get financing where maybe they wouldn?t be able too. Its tough many times for young families or young professionals that are just getting started to come up with that down payment. This is a way we can help people entering the workforce or moving to a community to finance that home that really gives them a foundation for their life in that community.?
The direct home loan program allows applicants to buy an existing home, finance new construction, and in some cases, conduct major remodeling efforts to improve health and safety features on homes already owned. Helmbrecht said eligibility requirements for the direct home loan program include: income, credit history and work history.
?In rural communities, it?s very common for a family of four to make up to $56,000 and still be eligible for our financing. In rural communities, that hits a lot of people the people that live there. And then we?re looking for folks with good credit history and solid work history. We use those things, like conventional lenders, in making that decision of homeownership for those families,? Helmbrecht said.
The interest rate for USDA Rural Development?s direct home loan program is 3.25 percent for a 33-year term. Other program features include no down payment and long-term, fixed-interest rate financing.
For more information about USDA Rural Development?s direct home loan program call (515) 284-4444 or email DirectIA@ia.usda.gov.
