USDA program helps rural homeowners refinance - KWWL - Eastern Iowa Breaking News, Weather, Closings

USDA program helps rural homeowners refinance

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DES MOINES (KWWL) -

The USDA Rural Development is accepting applications to refinance home loans in eligible rural areas through its Direct Home Loan Program.

The USDA Rural Development’s Direct Home Loan Program helps low-income households in rural Iowa make home purchases with no down payments, and a temporary program change will allow eligible households experiencing an increase in interest rate or change in repayment terms to refinance.

This temporary change applies to adjustable rate loans, interest only loans, short-term rate locks, or other forms of specialty lending.

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 USDA Rural Development Direct Home Loan 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 September 1 to allow for adequate processing time prior to the end of the federal government’s current fiscal year on September 30, 2014.

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.

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