Buying a home is a significant financial investment. One financing option that many buyers may not be aware of is a USDA Rural Development loan.
A USDA Rural Development loan is a government-backed loan that is available to those who are looking to purchase or build a home in a rural area. This type of loan is offered through the United States Department of Agriculture (USDA) and is designed to help individuals and families purchase or build a home in rural areas.
One of the key benefits of a USDA Rural Development loan is that it offers 100% financing, which means that there is no down payment required. Additionally, USDA Rural Development loans also offer competitive interest rates and flexible credit guidelines, making it easier for many buyers to qualify.
Another benefit of a USDA Rural Development loan is that it can be used to finance both the purchase of a home as well as the construction of a new home. This means that buyers can use a USDA Rural Development loan to finance the purchase of land, as well as the cost of building their dream home.
To qualify for a loan, you must be a U.S. citizen or permanent resident, have a steady income for 2 years, and own a primary residence. Debt ratios and monthly payments, along with credit score, will impact loan eligibility. In Iowa, USDA Rural Development loans are available in many rural areas throughout the state. However, it’s important to note that not all areas are eligible for a USDA Rural Development loan. You can check your eligability and find more information on the USDA website.
Overall, a USDA Rural Development loan can be a great option for those looking to build a home in a rural area of Iowa. The 100% financing, competitive interest rates and flexible credit guidelines make it a viable option for many buyers. At Kimberley Development Corporation we understand that navigating the financing process can be complex, that’s why we recommend reaching out to our team of experts to help guide you through the process and assist you in choosing the best option that fits your needs. Contact our team to learn more about the different financing options and how it can help make your dream home a reality.