DES MOINES — USDA Rural Development, through its Direct Home Loan Program, is temporarily accepting applications to refinance home loans in eligible rural areas.
With this temporary program change eligible households that will be experiencing an increase in interest rate or change in repayment terms for adjustable rate loans, interest only loans, short-term rate locks, or other forms of specialty lending, may be eligible to refinance their existing mortgage through the USDA Rural Development Direct Home Loan Program.
The USDA program offers 33 or 38 year terms, with a fixed interest rate currently at 3.625 percent (subject to change prior to closing).
Potential applicants are strongly encouraged to contact USDA Rural Development staff no later than Sept. 1 to allow for adequate processing time prior to the end of the federal government’s current fiscal year on Sept. 30.
Questions regarding USDA Rural Development’s Direct Home Loan Program can be directed by email to: DirectIA@ia.usda.gov; phone (515) 284-4444; fax (855) 415-3562; or USDA Rural Development, 210 Walnut Street, Room 873, Des Moines, Iowa 50309.
USDA Rural Development’s Direct Home Loan Program, which helps low-income households in rural Iowa make home purchases with no down payments, has $11 million in funding available to assist rural Iowans. To be eligible for the program, homes must be located in rural areas which are typically defined as communities of less than 20,000 residents.
“The demand for USDA direct home loan funding has historically been strong in Iowa and nationally,” said Bill Menner, USDA Rural Development State Director in Iowa. “This temporary change in program eligibility has the potential to help many rural Iowans as they continue to strive for successful homeownership.”
For more information about USDA Rural Development call (515) 284-4663 or visit www.rurdev.usda.gov/ia.