Could a USDA loan be for you?

As the housing prices have increased the ability for buyers to get into an affordable home has become a challenge. Could a USDA loan be an option for you? This is a loan type that doesn’t get discussed frequently because it doesn’t fit the bill for everyone, but in a market like today’s it might just be the ticket you need to break into homeownership. The unique thing about USDA loans are that they are only offered in locations that are considered to be rural areas. While you may not think of rural when you think of Central Iowa there are quite a few communities surrounding Des Moines that qualify including: Adel, Bondurant, Carlisle, Indianola, Dallas Center, Granger, Polk City, Cumming, and Winterset. You can search a specific address to see if it is in an area that qualifies here. USDA loans are designed to help lower income applicants obtain financing with more affordable interest rates and a longer payback plan. The amount of assistance that is granted is determined during the application process which factors in things like adjusted family income to determine the amount of support a buyer qualifies for. Loan funds can be used to buy homes in rural areas, build, repair, renovate, or relocate a home, or purchase and prepare sites, including providing water and waste treatment equipment. The application process can be intense but please don’t let that scare you as it can definitely be worth it! Just this week we helped a buyer qualify for a 4.2% interest rate with a 33-year loan payback period. Financial support like this gives a buyer more buying power to get into a home that fits their needs while still keeping their mortgage payment within their budget. If you are open to rural areas outside the metro and meet the income eligibility guidelines a USDA loan could be a great option for you! We are here to support you throughout the application process so please reach out to learn more!