100% Financing, No Money Down
Looking to buy a home with no down payment? A USDA loan could be the answer. This zero-down program helps eligible buyers1 looking to buy outside of Cedar Rapids, Marion, Hiawatha, and Iowa City get into a home with fixed rates and no PMI.
Start My ApplicationRequest Assistance
What Is a USDA Loan?
A USDA loan is a government-backed mortgage designed for low- to moderate-income buyers in qualified rural and suburban areas. It offers 100% financing, fixed 30-year terms, and affordable monthly payments without private mortgage insurance.1
Key USDA Loan Benefits:
No PMI
USDA loans don’t require private mortgage insurance, which helps reduce monthly costs.
100% Financing
No down payment required, USDA loans finance the full purchase price.
Up to 102% LTV
The USDA guarantee fee can be rolled into the loan for up to 102% total financing.
30-Year Fixed-Rate
Lock in a fixed interest rate for the full term, no surprises or rate hikes later.
Flexible Guidelines
USDA loans allow flexibility with credit history and income documentation.
Local Fit
USDA loans are not limited to farms. Many neighborhoods in Eastern Iowa qualify.
Eligible USDA Areas Around Cedar Rapids
You don’t have to live way out in the country to qualify1 for a USDA loan. Many suburbs near Cedar Rapids and throughout Linn County fall within eligible zones.
- Springville
- Mount Vernon
- Ely
- Palo
- Swisher
- Shellsburg
- Atkins
- Alburnett
- Center Point
- Bertram
- Toddville
- Tiffin
Curious if your town qualifies? Check the USDA eligibility map to see more locations across Eastern Iowa ->
USDA Property Requirements
USDA loans aren’t just about the location. The home itself also needs to meet certain safety and livability standards. You must plan to live in the home full-time; it can’t be a rental or an investment property.
After submitting your application,1 an appraiser will inspect the property to ensure everything checks out.
- Must be a single-family, primary residence
- Functional heating & cooling systems
- Safe, all-weather road access
- Structurally sound with a long-lasting foundation
- Adequate roofing
- Proper electrical system with no exposed wires
- Working plumbing and water pressure
Trusted Local Loan Officers in Cedar Rapids
Work with a local team that knows the market. Our NMLS-licensed loan officers reside and work in eastern Iowa, with offices conveniently located in Cedar Rapids.
Frequently Asked Questions: USDA Loans
Find answers to the most common questions from homebuyers in Iowa.
Are only first-time homebuyers eligible for USDA Loans?
No. First-time and repeat buyers can use a USDA loan. As long as you meet the income limits and the property is in an eligible location, you're good to go.
What is the maximum amount that I can borrow for a USDA Loan?
USDA loans don’t have a set loan limit like FHA or VA. Instead, your maximum loan amount is based on your income, debts, and the local market. If you qualify for it, and the home appraises, you can borrow it.
How much are the closing costs for a USDA mortgage?
Closing costs usually run 2%–5% of the home’s purchase price. That includes lender fees, title, appraisal, and prepaid taxes or insurance. You can ask the seller to cover them, or in some cases, roll them into your loan.
What refinance options does the USDA loan offer?
USDA loans offer a streamlined refinance option, but only for current USDA borrowers. That means no appraisal, minimal paperwork, and no out-of-pocket costs if rolled in. Great if you’re just looking for a lower rate.
Do USDA home loans have PMI?
USDA loans don’t require private mortgage insurance (PMI). Instead, there’s a one-time upfront fee, called the USDA guarantee fee, that’s 1% of the loan amount.
There’s also a small annual fee of 0.35%, which is built into your monthly payments. You can roll the upfront fee into the loan to keep it a true $0 down option.
Do USDA home loans require a down payment?
Nope. That’s one of the biggest perks. USDA loans offer 100% financing, so you can buy a home with no down payment required as long as you meet the eligibility criteria.
Ready to Take the Next Step? Apply Online!
No appointment needed. Get started online1 today and we’ll follow up with next steps.
USDA Loan Disclosures
1Must be 18 or older to apply. All loans are subject to credit approval. Funds must be used to purchase, or for the refinance of an existing USDA single family primary residence in a USDA eligible zone. Borrower will be charged a 1% guarantee fee at closing. An annual fee of 0.35% will be charged annually, with options to finance this fee. Income limitations apply. Contact an FSB mortgage lender for more details on whether you qualify.
