USDA: North Liberty is no longer ‘rural’

Residents of North Liberty will not be eligible for U.S. Department of Agriculture Rural Development home loans after Feb. 2.

The federal agency has determined that the Johnson County city with a 2013 population of 16,500 no longer meets the definition of 'rural” for the purposes of its rural housing programs. As such, North Liberty has been removed from the agency's community eligibility maps.

North Liberty is considered part of the Iowa City metropolitan statistical area (MSA). The USDA, using the White House's Office of Management and Budget's definition of rural, has determined that North Liberty 'has a high degree of social and economic integration with the core (MSA) as measured by commuting ties.”

Bill Menner, USDA Rural Development state director, said complete single-family housing applications received by his agency before Feb. 2 will not be subject to the new rural area designations and may be processed accordingly.

Menner said all other rural Iowa communities that were eligible for USDA Rural Development home loans before Feb. 2 will remain eligible.

The USDA Rural Development guaranteed home loan and direct home loan programs offer competitive interest rates, fixed terms, and require no down payment to help eligible families living in rural communities and areas purchase new or existing homes. Loans, and some grants, also are available to help families make repairs to their homes.

In most cases a family of four with an adjusted annual income of up to $74,050 can qualify for the agency's guaranteed home loan program. If that same family of four's adjusted annual income is less than $47,850, they also may qualify for a direct loan from the agency.

The income limits are higher in communities located near metropolitan areas.

Since 2009, USDA Rural Development has invested more than $3 billion on public facilities, small and emerging businesses, water and sewer systems, and housing for Iowa families.