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Iowa
June 18, 2026
National Homeownership Month
A homeowner in Georgia stands in her front yard. USDA photo credit Deborah Brumfield
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June has been proclaimed as National Homeownership Month and all month long, we are celebrating those who currently own their homes and those who are working to achieve the goal of homeownership. In fiscal year 2025, we were able to assist 60 families purchase or build a new home. We helped 63 families make repairs to their homes.
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Our 502 Direct Home Loan Program could be just what you are looking for to achieve your homeownership goals. This program assists low and very-low income applicants obtain decent, safe & sanitary housing in eligible rural areas with populations of 20,000 people or less. We can assist with purchasing a new or existing home, building, repairing, and/or moving a home.
- 100% Financing
- No down payment required (if within asset threshold)
- No private mortgage insurance (PMI)
- Standard repayment term of 33 years
- Low, fixed interest rate – effective June 1st the current rate is 5.125%
- Payment Assistance available for eligible applicants
- $324,700 maximum mortgage limit statewide
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To be eligible for funding applicants must meet the adjusted household income limits, have acceptable credit, and have an acceptable debt to income ratio. This must be the applicant’s primary residence. This program is not limited to first time home buyers.
Applicants with qualifying incomes may be eligible for payment assistance which can lower applicants’ interest rates to as low as 1%. The applicant’s adjusted annual income determines how much, if any, payment assistance they are eligible to receive.
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Our 504 Home Repair Loan & Grant Program assists very low-income homeowners repair, improve, modernize, or remove health and safety hazards from their home. The applicant must own and occupy the home as their primary residence and be located in an eligible rural area.
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Loan Portion:
- 1% fixed interest rate
- 20-year term
- $40,000 outstanding loan at one time
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Grant Portion:
- At least 1 applicant MUST be 62 years or older
- $10,000 lifetime maximum
- Must remove health and safety hazards and/or make a dwelling more accessible for a household member with a disability
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Repair Examples:
- Roof, furnace, A/C unit, water heater, windows, plumbing, electrical, insulation, siding, sewer and water systems, storm doors, steps, stoops, decks, driveways, landscaping, ramps, handrails, and walk-in tub/shower
- We can assist!
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The Disaster Assistance Fund (DAF) program is available to help homeowners make essential repairs and improvements to rural homes affected by an eligible 2024 presidentially declared disaster. Iowa Rural Development was awarded funding for the following three declared disasters: FEMA-4796-DR, FEMA-4784-DR, and FEMA-4779-DR. This program offers a lifetime maximum grant amount of $32,420.
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Eligible Candidates:
- Be at least 18 years of age
- Be located in an eligible rural area
- Fall within the low-income limit for the applicable county and household size
- Sustained damage as a result of a presidentially-declared disaster
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Eligible Uses of the Program:
- Repairs to remove a health or safety hazard that was caused by the disaster
- Home repair expenses, including the reimbursement of eligible costs incurred prior to application, as long as it was a result of the natural disaster
- Site preparation and the costs to relocate manufactured homes
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Please Note:
- The affected home must be the applicant’s primary residence and they must be listed as the deed holder
- Grant recipients must certify that there is no duplication of benefits
- Funds cannot be used to pay for/reimburse for personal belongings, hotel stays, apartment rental costs, storage sheds, repairs to detached garages, etc.
- See Single Family Housing Disaster Assistance Fund Program for additional details
- Applications for the 502 Direct Program, 504 Home Repair Program and the DAF Program are being actively accepted and there is no deadline for submission. Applications must be submitted directly to the USDA Rural Development State Office in Des Moines, Iowa, at the address listed below. These funds are being distributed on a first-come first-serve basis until expended.
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Norma welcomed USDA visitors into her home in Pella, Iowa
- This past spring, a neighbor noticed that Norma, an 85-year-old resident of Pella, had no hot water in her house and that she could not access the shower because of the high step over the bathtub. He called Rural Development and asked if there were any resources out there that could help Norma finance home repairs.
- The Rural Development housing team in Iowa took his call and quickly reached out to the homeowner. The team assisted with her application for funding.
- From the 504 Repair program, Rural Development granted $10,000 to Norma to fix health and safety issues. The Agency also provided a low interest $6,097 loan. This financing allowed Norma, now dependent upon a wheelchair, to continue living in the house where she had spent the past 60 years.
- Home repairs included a basement drain replacement, water heater unit replacement, bathroom shower replacement, and water line replacement. Handrails in the new walk-in shower now help keep Norma from falling.
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USDA is an equal opportunity provider, employer, and lender |
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