USDA Rural Development today announced the availability of $232 million in guarantee home loan funding and more than $9 million in direct home loan funding to qualified rural Iowa households for the remainder of 2016.
“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.”
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 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.
“USDA Rural Development is committed to providing affordable housing opportunities for rural Americans,” Menner added. “Indeed, homeownership provides a strong foundation that helps people build household wealth and climb ladders of economic opportunity.”
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.
USDA Rural Development’s funding continues to have a dramatic impact on rural communities across Iowa. Since 2009, USDA Rural Development has invested $4 billion on essential public facilities, small and emerging businesses, water and sewer systems, and housing opportunities for Iowa families.
USDA Rural Development can help rural communities and regions grow and prosper by offering a variety of financial and technical assistance programs that encourage the development of strong community and economic development strategies.
This past year USDA Rural Development’s investment 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.
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.