USDA Loans—100% Financing for Rural Iowa
Think USDA loans are only for farms? Think again. These zero-down loans work in suburban communities across Iowa—places you probably wouldn’t consider “rural.”
The Geography Surprise
Adel, Van Meter, Grimes, parts of Ankeny, Bondurant, Indianola—all USDA-eligible. The USDA defines “rural” broadly, covering areas within reasonable commuting distance of Des Moines.
Income Limits Apply
Your household income can’t exceed 115% of the area median (roughly $115,000 for a family of four in Polk County as of 2025). But if you’re within limits and buying an eligible property, you’re getting 100% financing.
No PMI, Just a Guarantee Fee
Like VA loans, USDA charges an upfront guarantee fee (1%) and annual fee (0.35%), but these are considerably less than FHA’s insurance costs and drop off if you refinance to conventional later.
Perfect for Growing Families
If you’re priced out of metro areas but work in Des Moines, USDA opens up quality school districts with larger lots and more affordable homes. You get space without breaking the bank.
The Processing Reality
USDA loans take slightly longer to process—expect 45-60 days. Plan accordingly, and make sure your real estate agent understands the timeline.
Check Your Eligibility
Most people assume they don’t qualify without ever checking. Let’s pull up the property map and your income—you might be surprised.
Molly Maguire, NMLS #34702
Midwest Family Lending | Urbandale, Iowa
All loans subject to approval. Equal Housing Lender.
mollyMarieMaguire 
Leave a comment