Owning a home is a central piece of the American Dream. According to recent census data, the homeownership rate in Iowa is 72.8 percent, trailing only Michigan, Minnesota, New Hampshire, Utah and West Virginia.
Thanks to a loan from USDA Rural Development earlier this year Jeff and Angie White of Newton achieved homeownership for the first time and are extremely happy to be realizing the American Dream.
“Homeownership provides a strong foundation to help build household wealth, start a business, fund education through home equity, or give someone a chance to build a better future,” said Bill Menner, USDA Rural Development State Director in Iowa. “That’s why, during the past seven years, nearly $2 billion in USDA Rural Development funding has helped improve housing opportunities for tens of thousands of rural Iowans.”
Jeff and Angie White, who are brother and sister, first learned about USDA’s home loan program 12 years ago. Even though they both have limited incomes and thought they could never afford a home, they held onto their dreams and never gave up.
“For so long we were not in the right financial situation to make the move to homeownership,” Angie said. “While it was not always easy, we stuck with our vision and today it is so hard to express in words how excited we are that our dreams have come true.”
The Whites have already referred other people to the USDA loan program.
“If anyone thinks there is no way they can ever own a home, we are proof it is possible,” Angie added. “There are good programs out there and, more importantly, there are people who will go above and beyond to help you and guide you through the process. We are so grateful for everyone who has assisted us along our homeownership journey.”
June is Homeownership Month, a time to reflect on the important role homeownership plays in American society, especially rural America. Homeownership is a bedrock of the American economy, helping to increase jobs, boost demand for goods and services, and build prosperity.
“Each year the dream of homeownership is realized by more and more Iowans,” Menner said. “Many of these first-time homeowners are bringing new ideas, young families and a sense of energy to Iowa’s rural communities.”
Last year USDA Rural Development provided Iowans with $246 million in guaranteed and direct loans to help 2,400 families living in rural communities become homeowners, many of whom now own their first home.
USDA Rural Development has two low-interest, no-down-payment loan programs to help eligible families living in rural communities and areas purchase or construct a new home. Loans and some grants are also available to help families make needed repairs to their homes as well.
With guaranteed lending a loan is made to a borrower by the lender following the same basic steps as a conventional loan. USDA Rural Development provides up to a 90 percent guarantee to the lender on qualifying loans, reducing the lender’s risk in the event of a default by the borrower.
Direct home loans through USDA Rural Development feature 33-year loan terms and payment assistance is available.
USDA Rural Development’s guaranteed home loan and direct home loan programs offer competitive interest rates, fixed terms and require no down payment to help eligible families living in rural communities and areas purchase new or existing homes. Loans, and some grants, are also available to help families make needed repairs to their homes.
Typical income limits for a household of four are $75,650 for the guaranteed loan program and $49,450 for the direct loan program. Income limits vary by county and household size, so applicants are encouraged to contact USDA Rural Development staff for limits in their specific area.
Eligible homes must be located in a rural area and/or a community of generally less than 20,000 residents. The home can be existing or new construction. Existing homes must be structurally sound and the property cannot have any income-producing outbuildings.
“Homeownership is good for families, good for communities, and good for the economy,” Menner added. “Expanding and preserving homeownership and housing opportunities is a major part of the foundation for a stronger, more prosperous rural America.”
USDA Rural Development’s funding continues to have a dramatic impact on rural communities across Iowa. Since 2009, USDA Rural Development has invested more than $4 billion on essential public facilities, small and emerging businesses, water and sewer systems, and housing opportunities for Iowa families.
Contact USDA Rural Development
Further information about housing programs available through USDA Rural Development is available by calling (515) 284-4444, visiting www.rd.usda.gov/ia, or emailing DirectIA@ia.usda.gov or rd-grhia@ia.usda.gov.
This past year USDA Rural Development’s assistance in Iowa helped create or retain more than 1,000 jobs, aided 2,400 families in buying their own homes and assisted more than 60 communities as they made improvements to their facilities, services and infrastructure.
USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.
President Obama’s plan for rural America has produced historic investment in rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have strengthened America’s small towns and cities and helped improve the nation’s economy.