The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in Iowa aren’t the same thing as USDA Section 502 Guaranteed Loans in Iowa. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.
Can I get a USDA Direct Loan in Iowa?
USDA Direct Loans in Iowa are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of IA is $60,523, although that figure may vary from county to county. The maximum yearly income limits for Iowa USDA Direct Loan approval are listed below. Other than meeting Iowa USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:
- You have no decent clean, safe, and sanitary housing presently.
- You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
- You must use this property for your primary residence.
- You must possess the legal capacity to be able to contract a loan
- You must meet citizenship or eligible noncitizen requirements.
- You can’t be barred or suspended from participation in federal programs.
Additionally, the subject property must meet the following conditions:
- Be a modestly sized home for that area.
- Market value can’t be in excess of the areas applicable loan limit.
- Can’t be designed for the production of income.
What areas in IA are eligible for USDA Direct Loans?
The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in IA here.
How much can I borrow with a USDA Direct Home Loan?
The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.
Are there other mortgage options with low down payment or no down payment in Iowa?
Yes, there may be other low down payment mortgage options, and no down payment mortgage options in Iowa besides USDA Direct Loans. You can begin by researching Iowa USDA Guaranteed Loans, Iowa FHA Loans, and Iowa VA Loans if you’re a veteran in IA or qualified family member. You may also want to look into helpful programs for down payment assistance in Iowa.
Iowa USDA Direct Loan Maximum Income Limits
Area | 1 Person | 2 Person |
3 Person | 4 Person |
5 Person |
|---|---|---|---|---|---|
| Adair County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Adams County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Allamakee County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Ames, IA MSA | $70,150 | $70,150 | $70,150 | $70,150 | $92,600 |
| Appanoose County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Audubon County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Benton County, IA HUD Metro FMR Area | $66,150 | $66,150 | $66,150 | $66,150 | $87,300 |
| Boone County, IA | $59,700 | $59,700 | $59,700 | $59,700 | $78,800 |
| Bremer County, IA HUD Metro FMR Area | $68,800 | $68,800 | $68,800 | $68,800 | $90,800 |
| Buchanan County, IA | $61,300 | $61,300 | $61,300 | $61,300 | $80,900 |
| Buena Vista County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Butler County, IA | $56,100 | $56,100 | $56,100 | $56,100 | $74,050 |
| Calhoun County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Carroll County, IA | $60,000 | $60,000 | $60,000 | $60,000 | $79,200 |
| Cass County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Cedar County, IA | $61,600 | $61,600 | $61,600 | $61,600 | $81,300 |
| Cedar Rapids, IA HUD Metro FMR Area | $71,450 | $71,450 | $71,450 | $71,450 | $94,300 |
| Cerro Gordo County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Cherokee County, IA | $56,400 | $56,400 | $56,400 | $56,400 | $74,450 |
| Chickasaw County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Clarke County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Clay County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Clayton County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Clinton County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Crawford County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Davenport-Moline-Rock Island, IA-IL MSA | $58,150 | $58,150 | $58,150 | $58,150 | $76,750 |
| Davis County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Decatur County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Delaware County, IA | $60,700 | $60,700 | $60,700 | $60,700 | $80,100 |
| Des Moines County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Des Moines-West Des Moines, IA MSA | $70,000 | $70,000 | $70,000 | $70,000 | $92,400 |
| Dickinson County, IA | $63,200 | $63,200 | $63,200 | $63,200 | $83,400 |
| Dubuque, IA MSA | $65,100 | $65,100 | $65,100 | $65,100 | $85,950 |
| Emmet County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Fayette County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Floyd County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Franklin County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Fremont County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Greene County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Grundy County, IA SEA | $59,600 | $59,600 | $59,600 | $59,600 | $78,650 |
| Hamilton County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Hancock County, IA | $56,150 | $56,150 | $56,150 | $56,150 | $74,100 |
| Hardin County, IA | $58,300 | $58,300 | $58,300 | $58,300 | $76,950 |
| Henry County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Howard County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Humboldt County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Ida County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Iowa City, IA HUD Metro FMR Area | $75,500 | $75,500 | $75,500 | $75,500 | $99,650 |
| Iowa County, IA | $60,400 | $60,400 | $60,400 | $60,400 | $79,750 |
| Jackson County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Jasper County, IA | $58,100 | $58,100 | $58,100 | $58,100 | $76,700 |
| Jefferson County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Jones County, IA HUD Metro FMR Area | $58,900 | $58,900 | $58,900 | $58,900 | $77,750 |
| Keokuk County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Kossuth County, IA | $56,700 | $56,700 | $56,700 | $56,700 | $74,850 |
| Lee County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Louisa County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Lucas County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Lyon County, IA | $59,100 | $59,100 | $59,100 | $59,100 | $78,000 |
| Mahaska County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Marion County, IA | $60,300 | $60,300 | $60,300 | $60,300 | $79,600 |
| Marshall County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Mitchell County, IA | $55,750 | $55,750 | $55,750 | $55,750 | $73,600 |
| Monona County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Monroe County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Montgomery County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Muscatine County, IA | $56,650 | $56,650 | $56,650 | $56,650 | $74,800 |
| O'Brien County, IA | $57,200 | $57,200 | $57,200 | $57,200 | $75,500 |
| Omaha-Council Bluffs, NE-IA HUD Metro FMR Area | $68,800 | $68,800 | $68,800 | $68,800 | $90,800 |
| Osceola County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Page County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Palo Alto County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Plymouth County, IA HUD Metro FMR Area | $60,950 | $60,950 | $60,950 | $60,950 | $80,450 |
| Pocahontas County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Poweshiek County, IA | $57,050 | $57,050 | $57,050 | $57,050 | $75,300 |
| Ringgold County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Sac County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Shelby County, IA | $57,450 | $57,450 | $57,450 | $57,450 | $75,850 |
| Sioux City, IA-NE-SD HUD Metro FMR Area | $55,600 | $55,600 | $55,600 | $55,600 | $73,400 |
| Sioux County, IA | $61,600 | $61,600 | $61,600 | $61,600 | $81,300 |
| Tama County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Taylor County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Union County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Van Buren County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Wapello County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Washington County, IA HUD Metro FMR Area | $60,150 | $60,150 | $60,150 | $60,150 | $79,400 |
| Waterloo-Cedar Falls, IA HUD Metro FMR Area | $59,600 | $59,600 | $59,600 | $59,600 | $78,650 |
| Wayne County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Webster County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Winnebago County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Winneshiek County, IA | $60,900 | $60,900 | $60,900 | $60,900 | $80,400 |
| Worth County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
| Wright County, IA | $55,500 | $55,500 | $55,500 | $55,500 | $73,250 |
More USDA Loan Resources
USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)
All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator
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