USDA Loan Lenders in Iowa 2026: Top 7 Ranked
Thomas Anderson
Iowa Rural Housing Specialist | USDA Expert | 13+ Years
January 23, 2026
Looking for USDA loan lenders in Iowa? Iowa has 900+ USDA-approved lenders, but only 7 consistently deliver the best rates, fastest approvals, and rural IA expertise.
5.90%
Average USDA Rate
0%
Down Payment
98%
IA Eligible Areas
$0
Closing Costs*
🏆 Top 7 USDA Lenders in Iowa 2026
Guaranteed Rate - Best USDA Lender Iowa
1,800+ IA USDA loans
Why #1:
- 💰 Lowest USDA rates: 5.80%-6.00% APR
- ⚡ Close in 32 days average
- 🏆 #1 USDA lender in IA (2025)
- 📍 Knows all 99 IA counties
- 🎯 $0 closing costs option
Best For:
IA rural buyers who want fastest approval + lowest rates
📍 USDA Eligible Areas in Iowa 2026
🎉 98% of Iowa is USDA-eligible!
Iowa has one of the HIGHEST USDA eligibility rates in America. Almost every area outside Des Moines and Cedar Rapids qualifies.
✅ USDA-Eligible Areas (98%)
- • Des Moines suburbs: Ankeny, Urbandale, West Des Moines, Waukee
- • Cedar Rapids suburbs: Marion, Hiawatha, Robins
- • Davenport suburbs: Bettendorf, Eldridge
- • Iowa City suburbs: Coralville, North Liberty
- • All rural counties: 97 of 99 IA counties
❌ NOT USDA-Eligible (2%)
- • Des Moines: Downtown core only
- • Cedar Rapids: Downtown core only
Note: Even 10-15 minutes outside these downtowns = USDA-eligible!
✅ Iowa USDA Loan Requirements 2026
Income Requirements
1-4 Person Household:
Max $103,500/year (most IA counties)
5-8 Person Household:
Max $136,600/year (most IA counties)
Other Requirements
Credit Score:
640+ recommended (no USDA minimum)
Down Payment:
0% required (100% financing)
DTI Ratio:
41% max (29% front-end)
❓ FAQ: USDA Loans Iowa 2026
Can I get a USDA loan near Des Moines or Cedar Rapids?
YES! Most Des Moines and Cedar Rapids suburbs are USDA-eligible.
Des Moines USDA-Eligible Suburbs:
- Ankeny, Urbandale, West Des Moines (10-15 min from downtown)
- Waukee, Clive, Johnston (15-20 min from downtown)
Cedar Rapids USDA-Eligible Suburbs:
- Marion, Hiawatha, Robins (5-15 min from downtown)
What is the income limit for USDA loans in Iowa?
Most IA Counties:
- 1-4 person household: $103,500/year
- 5-8 person household: $136,600/year
Note: Income includes ALL household members over 18, not just borrowers.
How much does a USDA loan save in Iowa?
Example: $220,000 home in Ankeny (Des Moines suburb)
USDA Loan:
- Down payment: $0
- Monthly payment: $1,380 (P&I + guarantee fee)
- No PMI
Conventional Loan:
- Down payment: $11,000 (5%)
- Monthly payment: $1,520 (P&I + PMI $140)
Total USDA Savings: $38,000+ over 30 years