Iowa City Real Estate Blog

RD Loans - 100%  Financing Available in North Liberty Iowa

Thought I'd take the time today to pass on an "insider secret" for any of you thinking of buying a home in North Liberty Iowa.

There is a 100% Financing option on a 30 year fixed home loan with a Guaranteed Rural Development Home Loan.

The RD Loan, also known as USDA Loan is a government backed loan offered by the Department of Agriculture. It's all about promoting housing in rural communities...Now if you live around here you might be surprised to learn that North Liberty counts as a rural community. The USDA defines a rural community as having a population of less than 20,000. North Liberty is growing fast, but they don't have a population of 20,000 yet - that makes them eligible, at least for now.

This is probably a good time to point out that North Liberty is growing at a phenomenal pace. The most recent numbers I could find showed that the population in North Liberty grew by almost 105% comparing 2000 to 2007. There was a population of 5,359 in 2000 that increased to 10,982 in 2007. At the time of the study by the Iowa State University North Liberty was the 2nd fastest growing city in Iowa.

Judging by the home sales, I'd say that trend is continuing, with home sales in North Liberty in 2009 up by 11% for the year in comparison to 2008.

North Liberty just happens to be very popular and with its excellent location between Cedar Rapids and Iowa City that's really not a huge surprise. Plus, home prices are a little more appealing than in Coralville or Iowa City.

These are all reasons why I decided today was a good day to share this info about guaranteed RD loans. If you're buying a home in North Liberty, there simply isn't a better 30-year fixed rate option available!

Guaranteed Rural Development Home Loan Program:

• 30 year fixed rate. 100% financing in communities with less than 20,000. (examples: North Liberty, Oxford, Solon, Tiffin, West Branch)
• No Monthly PMI  - Private Mortgage Insurance, (2% USDA Fee financed into the loan)
• 620 Credit Score or better, (there may be exceptions for less than 620)
• Interest rate almost always the same (or better) than conventional 30-year fixed rate - even with 620 score
• North Liberty is in Johnson county and there are income eligibility limits based on the county you live in

I compiled this information by consulting with a Loan Officer in Coralville who specializes in FHA, RD and VA loans. Jessica Greving is the VP of Residential Mortgage Network in Coralville. RMN has closed 72% of all RD loans in Johnson County. This is a special program for rural communities and not too many banks in the area offer it as an option. Please email me for more information.

Just 80 days until the tax credit for first time home buyers expires! With low interest rates, great home prices and excellent government backed loan options - with low or no down-payment requirements - it's worthwhile looking into whether now is the right time for you buy a home in the Iowa City, Coralville or North Liberty area.