Buying a Rural Home? Consider a USDA Rural Development Loan!
The USDA Rural Development program is one of our most asked-about loan programs. With eligible towns in all 99 counties in Iowa, it’s not hard to see why! Learn more about the many benefits of a Rural Development loan.
USDA Rural Development Requirements
USDA Rural Development loans are available to buyers looking to purchase a home in a community with a population of 20,000 or less. This encompasses North Liberty, Tiffin, Swisher, Newton, Washington, Williamsburg, Solon, Grinnell and many, many more.
The USDA recently released the updated 2019 income limits, which vary by county. If you live in Johnson county, the income limit is $143,300; for Linn county residents, it is $135,500.
To be eligible for the Rural Development loan program, you must also:
- Occupy the home you’re purchasing as your permanent residence
- Be a U.S. citizen or permanent resident
There are a number of benefits of the USDA Rural Development program, which is why we are always more than happy to offer it. Other lenders tend to shy away from RD programs, not because the program is difficult but simply because they do not know how to get them done. We know how to get them done on time and with confidence!
Here the 3 main benefits of a Rural Development loan:
- Lower interest rate than Conventional loans
- 30 year fixed rate financing
- No minimum down payment required!
In fact, you can get 100% financing through the Rural Development program and still pay a lower interest rate than Conventional. There is a Guarantee Fee included with 100% financing, which is similar to private mortgage insurance. However, with the lower, fixed interest rate of the RD loan, you’ll still come out ahead!
Buying a Home with a Rural Development Loan
If you or anyone you know is looking to buy a home in a rural community, the USDA Rural Development loan may be the right loan program for you! Please feel free to contact us or give us a call to discover your eligibility.