If you’re looking to purchase a new home this summer, you may be surprised to learn that the only no-down-payment programs still available are offered through the U.S. Department of Agriculture (USDA).Bill Menner, USDA Rural Development State Director in Iowa, says “Last year USDA Rural Development helped 2,500 families living in rural Iowa communities become homeowners, many of whom now own their first home.”

USDA Rural Development has two low-interest, no-down-payment loan programs to help eligible families living in rural communities and areas purchase new homes. Loans and some grants are also available to help families make needed repairs to their homes as well.

Eligible homes must be located in a community of 20,000 persons or less. The home can be existing or new construction. Existing homes must be structurally sound. Also, the property cannot have any income-producing outbuildings.

In most cases a family of four with an adjusted annual income of up to $80,850 may qualify for the agency’s guaranteed home loan program. If that same family of four’s adjusted annual income is less than $56,250 they may also qualify for a direct loan from the agency. Please call your area office to find the exact income limit for your county.

USDA Rural Development’s guarantee loan program is administered by a local lender who takes the application, processes it and determines the acceptability of the home to be financed. Under the direct loan 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 percent, lowering the overall monthly payment.

For more information about finance programs through USDA Rural Development, please call the office located in Atlantic at (712) 243-2107 Ext. 4. This office serves communities, businesses and residents in Harrison, Shelby, Audubon, Pottawattamie, Cass, Mills, Montgomery, Adams, Fremont, Page and Taylor Counties.