tamatoledonews.com – IOWA FALLS (SPECIAL) If you are looking to purchase a new home this spring you may be surprised to learn that the only no-down-payment programs still available are offered through the U.S. Department of Agriculture (USDA).

“Last year USDA Rural Development provided Iowans with $257 million in guaranteed and direct loans to help 2,800 families living in rural 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. Loans and some grants are also available to help families make needed repairs to their homes as well.

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 $73,600 may qualify for the agency’s guaranteed home loan program. If that same family of four’s adjusted annual income is less than $49,000 they may also qualify for a direct loan from the agency. These income limits increase in communities located near metro areas.

USDA Rural Development’s guarantee loan program is administered by a local lender who takes the application, processes it and determines the acceptability of the home to be financed. Under the direct loan program an applicant may be eligible for payment assistance, which would subsidize the interest portion of the house payment down to as low as 1 percent, lowering the overall monthly payment.

USDA Rural Development is an equal opportunity lender with a variety of direct and guaranteed rural credit programs involving single and multi-family housing, community facilities, water and sewer development and business and industry programs.

“Along with home mortgage loans, special funds are available from USDA Rural Development to assist with improvements to community facility and infrastructure projects such health clinics, community centers, public safety buildings and water and wastewater systems, as well as businesses and economic organizations looking to create jobs in rural communities,” Menner said.

Contact USDA Rural Development

Residents in north central Iowa are served by the USDA Rural Development office in Iowa Falls. For more information about housing programs through USDA Rural Development, please call Karen Reuter or Judy Geiken at (641) 648-5181 Ext. 4. You can also visit with them in the office between 8 a.m. to 4:30 p.m. at 840 Brooks Rd. in Iowa Falls.

The Iowa Falls office serves residents in Butler, Cerro Gordo, Floyd, Franklin, Grundy, Hardin, Marshall, Mitchell, Tama and Worth Counties.

USDA Rural Development has 11 offices across the state to serve the 1.9 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.

USDA Rural Development administers and manages more than 40 housing, business, and community infrastructure and facilities programs. These programs are designed to improve the economic stability of rural communities, businesses, residents, farmers and ranchers and improve the quality of life in rural America. Rural Development has an existing portfolio of more than $130 billion in loans and loan guarantees.

Further information on programs available through USDA Rural Development is available by visiting the agency’s web site at www.rurdev.usda.gov/ia