Home Point Financial is pleased to announce that we now have Iowa USDA financing. USDA Loans in Iowa are intended to provide lower-income homeowners with 100% financing (with no down payment). USDA (United States Department of Agriculture) loans, once known as farm loans, are now available to Iowa residents in almost every IA county outside of major metropolitan areas (Nobles County, Mahaska County, Bremer County etc.).
USDA Loan Requirements and Guidelines (Iowa)
There are a number of requirements to quality for Iowa USDA Loans:
- Monthly Iowa housing costs (mortgage principal and interest, property taxes and insurance) must meet a specified percentage of your gross monthly income (29% ratio).
- Credit background will be fairly considered. At least a 640 FICO credit score is required to obtain a USDA approval through most lenders in Iowa.
- Iowa borrower must have enough income to pay your housing costs plus all additional monthly debt (41% ratio with some flexibility).
- Income can be up to 115% of the median income for the area.
- Bankruptcy: Have been discharged from a Chapter 7 bankruptcy for three years or more (if applicable).
- Iowa property must be considered rural which is generally defined as open country with fewer than 10,000 people. Learn more here: http://eligibility.sc.egov.usda.gov.
Iowa families must be able to afford the mortgage payments, including taxes and insurance.
Iowa USDA Mortgage Rates
IA USDA Loan rates vary by individual and are determined by a number of factors specific to the individual, Iowa property being financed, etc. In general, IA USDA rates are better than average compared to other options for qualifying individuals.