USDA Rural Development (RD) Loans
The Rural Development loan through USDA is designed to help grow home ownership in communities with a population of 20,000 or less. There are towns in all of the 99 counties in Iowa that are eligible. Some of them include North Liberty, Solon, Tiffin, Williamsburg, Swisher and Newton. There are many more eligible towns than ineligible ones! Don’t hesitate to email or text us the address of the property you are curious about and we will confirm eligibility for you.
What makes the RD Loan so great
- Zero down payment required
- 30 year fixed rate
- Interest rate lower than Conventional
- Many communities in Iowa are eligible
- Fixed rate Condo financing
Requirements of the program
- Income limits – the USDA 2020 income limits vary by county. If you live in Johnson county, the income limit is $112,850; for Linn county residents, it is $102,700. Don’t let the RD income limits scare you! There are some eligible monthly expenses that can be deducted. Let us calculate your income!
- Must occupy as your primary residence
- US Citizen or permanent resident
What is the Guaranty Fee?
Some lenders that don’t understand the program try to scare buyers by telling them the PMI is expensive, when in reality, it’s not! The Guaranty Fee is a 1% fee added (financed) into the loan plus a small monthly fee that reduces as you pay down your loan balance. When compared to a Conventional loan at a higher rate (and often a higher PMI) it is much more competitive and inexpensive.
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