Bill Menner, USDA Rural Development State Director in Iowa announced Monday, the availability of $232 million in guarantee home loan funding and more than $9 million in direct home loan funding to qualified rural Iowa households for the remainder of 2016.

With guaranteed lending a loan is made to a borrower by the lender following the same basic steps as a conventional loan. USDA Rural Development provides up to a 90 percent guarantee to the lender on qualifying loans, reducing the lender’s risk in the event of a default by the borrower. Direct home loans through USDA Rural Development feature 33-year loan terms and payment assistance is available.

USDA Rural Development’s guaranteed home loan and direct home loan programs offer competitive interest rates, fixed terms and require no down payment to help eligible families living in rural communities and areas purchase new or existing homes. Loans, and some grants, are also available to help families make needed repairs to their homes.

Typical income limits for a household of four are $75,650 for the guaranteed loan program and $49,450 for the direct loan program. Income limits vary by county and household size, so applicants are encouraged to contact USDA Rural Development staff for limits in their specific area. Eligible homes must be located in a rural area and/or a community of generally less than 20,000 residents.

Further information about housing programs available through USDA Rural Development is available by calling (515) 284-4444, or by visiting www.rd.usda.gov/ia, or emailing DirectIA@ia.usda.gov or rd-grhia@ia.usda.gov.