UPDATE January 13, 2015 – North Liberty remains eligible for the Rural Development Home Loans at least through September 30, 2015.
The post below was written last year, since then there have been further developments and North Liberty continues to be eligible for USDA, Rural Development loans at least through September 30, 2015. You’ll find more about the reasons behind this decision by following this link to an article in the Gazette.
Start of Original Post:
If you’re thinking of buying a house in North Liberty in the next couple of months there’s been a change of developments with regard to North Liberty’s eligibility for Rural Development Home Loans. If you’ve been following my blog you’ll know that North Liberty is one of the fastest growing towns in Iowa so it really wasn’t a huge surprise to hear last week that North Liberty was taken off the list of eligible areas for USDA / Rural Development Home Loans. Fast forward a week…. Imagine my surprise yesterday when I got an email from the USDA that President Obama had signed a resolution that puts North Liberty back on the eligible area list for Rural Development Home Loans until through December 11.
I’ve copied and pasted the information in the email I received from the USDA below:
“North Liberty Continues to be Eligible for USDA Rural Development Home Loan Programs
Earlier this month “Continuing Appropriations Resolution, 2015” (Public Law 113-164) was signed by President Obama. This continuing resolution extends a current general provision regarding housing program eligibility through December 11, 2014, barring congressional action.
Therefore, in Iowa, North Liberty continues to be eligible for USDA Rural Development’s Home Loan programs. This eligibility will remain at least through December 11, 2014, unless Congress changes the date.”
The Rural Development Home Loan offers buyers 100% financing on a home with a low interest rate AND no PMI (Private Mortgage Insurance). As the name suggests, it’s a home loan program designed to promote home ownership in rural areas. (I know I’m talking about North Liberty in this post, but Tiffin is another area I cover that is an area eligible for RD Loans). The USDA have two loan programs they offer. The Guaranteed Loan Program is available to eligible households not exceeding 115% of median income for the area. I know several good lenders who offer this loan program if you’d like to contact me for details.
The USDA also offers a Direct Loan for buyers who are not able to take advantage of the Guaranteed Loan Program and are unable to qualify through a conventional lender. Buyers will need to contact the USDA directly to see if they qualify for the Direct Loan Program. I recently helped a buyer who took advantage of the Direct Loan Program. The process was not overly complicated and she was able to close on the loan in a similar time frame to any other loan.
Last week I also took a continuing education class where there were two representatives from the USDA and they were very eager to have us real estate agents get the word out about the loan programs. I’m happy to do that in this blog post. You’ll also find information about eligibility on their website – USDA Home Loans Eligibility. If you don’t find what you need on their website, please call me at 319-400-0268 and I’ll refer you to a lender who knows their way around RD Loans. Alternatively, if you’re interested in the Direct Loan Program, I’ll refer you to the USDA Iowa Division in Des Moines.
Are you looking for the right Realtor to help you you navigate the complexities of the North Liberty real estate market, all the while looking out for you and your money? Qualifying for a home is the first step in the home buying process. There’s lots more to know and I’m all about sharing information. When you’re ready to move forward with the purchase of a home, sound advice and guidance is just a phone call, text or email away. Call Denise now at 319-400-0268.