Newton siblings buy house using USDA program

Many Jasper County residents like to be able to buy a home. Some steps taken recently by two Newton residents allowed them to achieve that goal in a unique way.

Jeff and Angie White, who are brother and sister, had been looking to buy a home for about 10 years. A couple of years ago, they finally took the steps needed to get qualified under what turned out to be the best program for them: the home loan program offered through USDA Rural Development.

“When our father, Frank, died in 2003, he didn’t own his own, so the landlord just sold it the next year,” Jeff White said. “We both knew we wanted to own a home then but didn’t have the financial means to do it.”

Both Jeff and Angie are fully disabled, so their income options are somewhat limited. After the siblings were finally able to arrange their finances better, getting qualified in 2015 became a more realistic process. They moved into a home on East 10th Street South in Newton earlier this year, and encourage couples and individuals in Jasper County to look into USDA Rural Development.

“We didn’t want to be in an apartment anymore,” Jeff White said. “We wanted the American Dream, but we just needed to follow through. Now, we’re so happy, we want more people to take advantage of programs that are available.”

Eligible homes must be located in a rural area and/or a community of generally fewer than 20,000 residents (Newton, the county’s largest city, is about 15,000). The home can be existing or new construction, though existing homes must be structurally sound and the property cannot have any income-producing outbuildings.

Income limits vary by county and household size, so applicants are encouraged to contact USDA Rural Development staff for limits in their specific area.

Bill Menner, the USDA Rural Development state director for Iowa, said since 2009, USDA Rural Development has invested more than $4 billion on essential public facilities, small and emerging businesses, water and sewer systems, and housing opportunities for Iowa families.

“Home ownership provides a strong foundation to help build household wealth, start a business, fund education through home equity or give someone a chance to build a better future,” Menner said. “That’s why, during the past seven years, nearly $2 billion in USDA Rural Development funding has helped improve housing opportunities for tens of thousands of rural Iowans.”

USDA Rural Development has two low-interest, no-down-payment loan programs to help eligible families living in rural communities and areas purchase or construct a new home.

There is a guaranteed lending a loan is made to a borrower by the lender following the same basic steps as a conventional loan. USDA Rural Development provides up to a 90 percent guarantee to the lender on qualifying loans, reducing the lender’s risk in the event of a default by the borrower. Direct home loans through USDA Rural Development feature 33-year loan terms and payment assistance is available.

Loans and some grants are also available to help families make needed repairs to their homes as well.

Menner said according to recent census data, the home ownership rate in Iowa is 72.8 percent, trailing only Michigan, Minnesota, New Hampshire, Utah and West Virginia.

“Home ownership is good for families, good for communities, and good for the economy,” he said. “Expanding and preserving home ownership and housing opportunities is a major part of the foundation for a stronger, more prosperous rural America.”

Angie White said she and her brother were, for many years, not in the right financial situation to make the move to home ownership. It took self-discipline and planning to get to that point.

“While it was not always easy, we stuck with our vision,” Angie White said. “And today, it is so hard to express in words how excited we are that our dreams have come true. “If anyone thinks there is no way they can ever own a home, we are proof it is possible.”

The Whites have already referred other people to the USDA loan program.

“There are good programs out there, and, more importantly, there are people who will go above and beyond to help you and guide you through the process,” Angie White said. “We are so grateful for everyone who has assisted us along our home ownership journey.”

Jeff White said staff at the Newton realtor Doyle & DeVoe Iowa Realty Team were particularly helpful.

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas. Office locations include a state office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly. President Obama’s plan for rural America has produced historic investment in rural communities.

These investments in housing, community facilities, businesses and infrastructure have strengthened America’s small towns and cities and helped improve the nation’s economy.

Anyone who wants to learn more about the USDA’s program can call 515-284-4444 or send email to directIA@ia.usda.gov.

Jeff White said taking care of a yard was one aspect he missed out on through the years, being in apartments. He said he plans to keep it simple — no flowerbeds are planned.

“Nope — no flowers,” he said. “Just a few plants and some grass.”

Contact Jason W. Brooks at 641-792-3121 ext. 6532 or jbrooks@newtondailynews.com