On March 8, Mark Reisinger, state director for USDA’s Rural Development Agency in Iowa, announced that Rural Development has increased the maximum home mortgage limits available through the agency's direct loan program. Limits vary depending on the region of the state.

The new limit is $181,500 for 58 of the state's 99 counties located mostly in north central, central and southeast Iowa. The new maximum mortgage for other parts of the state are $174,500 in southwest Iowa, $175,900 in northwest Iowa, $184,300 in northeast Iowa and $191,300 in eastern Iowa.

"During the past year Rural Development assisted nearly 1,300 Iowa families in buying their own home," says Reisinger. "These increased mortgage limits will allow us to expand our programs to even more rural Iowans this year."

Programs provide low-interest loans

USDA Rural Development's direct and guaranteed loan programs provide low-interest, no-down-payment loans to help eligible families living in rural communities and areas purchase new homes. The new lending limits affect only direct home loans from Rural Development. There are no lending limits for guaranteed home loans.

The direct loan program is geared toward low to very low-income individuals. No down payment is requirement for this program and the closing costs may be included in the loan. Under this 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%, lowering the overall monthly payment amount.

Eligible homes must be located in a community of 20,000 persons or less. The home can be existing or new construction and must meet, or be developed, up to the minimum thermal standard and be structurally sound. Also, the property cannot have any income-producing outbuildings.

Each year USDA Rural Development invests more than $100 million in guaranteed loans, direct loans, grants and rental assistance that provide rural Iowa residents with decent, safe and sanitary single or multi-family housing. Rural Development also offers low-interest loans and grants to help eligible families make essential repairs to their home.

Other USDA programs help communities

Other Rural Development programs provide loans and guaranteed loans and grants to help communities purchase or build essential community facilities and services, water and sewer development and business and industry programs.

"While rural development can be accomplished in so many different ways, at its foundation is a community's ability to provide its residents with decent, safe and affordable housing," says Reisinger. "Helping provide quality housing has been a central priority of Rural Development for many years and is another example of how we strive to increase the quality of life for all rural Americans."

Contact USDA Rural Development if you want more information about this or other USDA housing programs. Call 515-284-4685, visit www.rurdev.usda.gov/ia, or stop by one of the USDA Rural Development office locations in Iowa. USDA Rural Development has 11 offices in Iowa serving 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.