Indianola, Iowa, Jun 19, 2012 -- If you are looking to purchase a new home this summer you may be surprised to learn that the only no-down-payment programs available are offered through the U.S. Department of Agriculture (USDA).
“Last year USDA Rural Development helped 2,000 families living in rural Iowa communities become homeowners, many of whom now own their first home,” said Bill Menner, USDA Rural Development State Director in Iowa.
USDA Rural Development has two low-interest, no-down-payment loan programs to help eligible families living in rural communities and areas purchase new homes. One program provides a federal guarantee on home loans made by approved lenders to moderate income households in eligible rural areas. The loan provides qualified borrowers up to 100-percent financing on a 30-year fixed-rate loan, while eliminating the need for a down payment or private mortgage insurance.
The USDA also has a direct home-loan program where we serve as the lender and provide 100-percent financing on home loans to eligible rural residents.
Eligible homes must be located in a community of 20,000 persons or less. The home can be existing or new construction. Existing homes must be structurally sound. Also, the property cannot have any income-producing outbuildings.
In most cases, a family of four with an adjusted annual income of up to $74,750 may qualify for the guaranteed home loan program. If that same family’s adjusted annual income is less than $47,450 they may also qualify for a direct loan.
USDA Rural Development also has loans and some grants available to help families make needed repairs to their homes as well.
“June is National Homeownership Month,” Menner said. “This is a great time to buy a home, especially in rural Iowa. Interest rates are at or near record lows, and housing prices are more affordable than they’ve been in nearly a generation. Give us a call today.”
Contact USDA Rural Development
For more information about finance programs through USDA Rural Development, please call the office located in Indianola at (515) 961-5365 Ext. 4. This office serves communities, businesses and residents in Guthrie, Dallas, Polk, Adair, Madison, Warren, Union, Clarke, Ringgold and Decatur Counties.
USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities. 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.
“Homeownership is good for families, good for communities, and good for the economy,” Menner added. “Owning a home is the American Dream and the Obama Administration housing’s policies are helping to strengthen rural communities and driving the nation’s ongoing economic recovery forward.”
Through these housing opportunities, as well as our many other job-creation, community facility and economic-development programs, the USDA is committed to ensuring that small towns and rural communities thrive into the future.
Further information on programs available through USDA Rural Development is available by visiting the agency’s web site at www.rurdev.usda.gov/ia.
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