The U.S.D.A’s Rural Development office in Iowa is raising the mortgage limit in its direct-loan program to low-income rural Iowans. Iowa director Mark Reisinger says the increase allows them to keep up with the increased valuations of property. Reisinger says some areas of the state in the last year have seen a 25-percent increase in the cost of "relatively modest homes" that are generally purchased by people of limited income.
Reisinger says the program targets certain areas of the state. He says the homes have to be in communities of 20-thousand people or less, and can be existing homes or new construction, as long as they meet construction standards and fall in the price range. The loan limit has been raised to 181-thousand dollars.
Reisinger says Rural Development offers a five-point-eight-seven percent interest rate, which he says such a loan would carry a six-and-a-half to six-and-three-quarter percent interest. He says they also save in fees and can buy down an interest rate in some cases. Riesinger encourages anyone who might meet the criteria to check out the program.
Reiseinger says you can call the office in Des Monies at: 515-284-4663, and they will director you to the nearest local officer. He says last year they helped some 13,000 families become homeowners through the direct loan program.