Midwest Family Lending Blog

If you are a Veteran, active-duty service member, or a surviving spouse living in Urbandale, Iowa, or the greater Des Moines metro area, you may have access to one of the most powerful home financing tools on the market: the VA Home Loan. At Midwest Family Lending, we believe that after you have served our country, it is our honor to serve you by helping you achieve the American Dream of homeownership.

The VA loan program offers incredible benefits, including $0 down payment, no private mortgage insurance (PMI), and competitive interest rates. However, a common question we hear from local veterans is simply: “How do I know if I actually qualify?”

Navigating government requirements can feel overwhelming, but it doesn’t have to be. As your trusted local mortgage experts in Urbandale, we are here to break down the eligibility requirements, financial standards, and the steps you need to take to get the keys to your new home.

The Two Pillars of Qualification: Service and Financials

Qualifying for a VA loan isn’t just about having served in the military; it is a two-step process. First, you must meet the specific service requirements set by the Department of Veterans Affairs (VA). Second, you must meet the financial credit and income standards set by the lender. Let’s break these down.

1. Service Eligibility Requirements

To be eligible for a VA home loan, your service history must meet certain criteria regarding the length and character of your service. Generally, you may be eligible if you meet one of the following conditions:

• Active Duty Service Members: You have served at least 90 continuous days on active duty.
• Veterans: The length of service required depends on when you served (wartime vs. peacetime). Generally, this ranges from 90 days in wartime to 181 continuous days in peacetime.
• National Guard and Reserves: You have completed at least 6 years of service in the National Guard or Reserves, or served 90 days of active duty (at least 30 of which were consecutive).
• Surviving Spouses: You are the un-remarried surviving spouse of a Veteran who died in service or from a service-connected disability.

Note: You must have received a discharge other than dishonorable to be eligible.

2. The “Golden Ticket”: Your Certificate of Eligibility (COE)

The only official way to prove to a lender that you meet the service requirements is by obtaining your Certificate of Eligibility (COE). Think of this as your “golden ticket” to the VA loan program.

Many veterans worry that they need to hunt down old paperwork or navigate the VA portal alone to get this document. Here is the good news: When you work with Midwest Family Lending, we can often pull your COE for you instantly through our lender portal. If you are wondering about your status, contact our team today, and let us do the heavy lifting for you.

Detailed Service Duration Requirements

Because service requirements vary based on the era in which you served, we have compiled this table to help you determine if you likely qualify based on your timeline.

Service Era / Period	Minimum Service Requirement
World War II, Korean War, Vietnam War	90 total days
Gulf War (Aug 2, 1990 – Present)	24 continuous months OR the full period (at least 90 days) for which you were called to active duty.
Peacetime Periods (1947-1950, 1955-1964, 1975-1980/81)	181 continuous days
Separated from Service (Active Duty)	24 continuous months OR the full period (at least 181 days) for which you were called.
Selected Reserves / National Guard	6 creditable years of service.

Financial Requirements: Credit, Income, and Assets

While the VA guarantees a portion of the loan, they do not lend the money directly. Private lenders—like Midwest Family Lending—provide the funds. This means you must also meet the lender’s financial criteria to ensure you can repay the mortgage.

Credit Score

The VA does not set a minimum credit score, but most lenders look for a score of 620 or higher. However, because we are an independent mortgage broker in Urbandale, we have access to multiple lenders and loan options. This gives us the flexibility to work with veterans who might have unique credit situations. If you aren’t sure where your credit stands, do not disqualify yourself! Get pre-qualified with us to see where you stand.

Debt-to-Income (DTI) Ratio

Residual Income

This is a unique requirement for VA loans. The VA wants to ensure that after paying your mortgage and major debts, you have enough money left over for living expenses (food, gas, utilities). This calculation varies by region and family size. Our team of licensed home loan originators are experts at calculating this to ensure your loan file is bulletproof.

Property Requirements in Iowa

The VA loan is designed for primary residences. You generally cannot use a VA loan to buy a rental property or a vacation home (unless you plan to live in it full-time). Whether you are looking at a house in Urbandale, a condo in Des Moines, or an acreage in rural Polk County, the property must meet the VA’s Minimum Property Requirements (MPRs).

These requirements ensure the home is safe, sanitary, and structurally sound. This protects you from buying a “money pit.” Common MPR checks include:

• Functioning heating and electric systems.
• Good roofing with no major leaks.
• No lead-based paint hazards (common in older Iowa homes).
• Access from a public or private street.

Why Choose a Local Urbandale Mortgage Broker?

You have options when choosing a lender, but working with a local expert makes a difference. Big banks and online call centers often treat you like a number. At Midwest Family Lending, we treat you like family. We are proud to have earned a 5-star reputation because we are trustworthy, experienced, and deeply connected to the Urbandale community.

Our team understands the local real estate market. We work directly with local realtors and appraisers to ensure your VA loan closes on time. When you call us, you get a real person—not an automated menu. We are dedicated to simplifying the process and guiding you toward the perfect loan.

Frequently Asked Questions (FAQs)

1. Can I use a VA loan more than once?

Yes! The VA home loan benefit is not a one-time use program. Once you pay off your existing VA loan and dispose of the property (or refinance it into a non-VA loan), your entitlement can be restored. In some cases, you can even have two VA loans at once if you are relocating. We can check your bonus entitlement to see what is possible.

2. Is there a maximum loan limit for VA loans in Iowa?

For veterans with their full entitlement available, there is no loan limit. You can borrow as much as a lender is willing to approve based on your income and credit. This is a huge advantage for buying in higher-priced markets.

3. Do I have to pay for Private Mortgage Insurance (PMI)?

No. This is one of the biggest money-saving features of the VA loan. Unlike FHA or Conventional loans with low down payments, VA loans never require monthly PMI. This can save you hundreds of dollars every month.

4. What is the VA Funding Fee?

The VA Funding Fee is a one-time government fee applied to the loan to help keep the program running for future generations. The amount depends on your down payment and if you’ve used the benefit before. Important: Veterans receiving compensation for a service-connected disability are usually exempt from paying this fee.

5. Can I get a VA loan if I have a bankruptcy or foreclosure in my past?

Yes, and often sooner than with other loan types. Generally, you may qualify for a VA loan two years after a Chapter 7 bankruptcy discharge or a foreclosure. We can help review your specific credit history to see if you are ready to buy.

Ready to Use Your Benefits? Let’s Get Started!

You served our country; now let us serve you. Determining your eligibility is the first step toward owning your dream home in Urbandale or the surrounding Des Moines area. Don’t let uncertainty stop you—our team is here to pull your COE, review your financials, and get you pre-approved.

Midwest Family Lending is here to help you get your ducks in a row. Whether you are ready to buy now or just starting to plan, contact us today.

Apply Now | Contact Us | Call our Urbandale Office: (515) 252-7107

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Midwest Family Lending Corporation
2753 99th St, Urbandale, IA 50322
NMLS #4622
www.midwestfamilylending.com

Disclaimer: Midwest Family Lending is not affiliated with or acting on behalf of or at the direction of FHA, VA, USDA, or the Federal Government. All loan programs are subject to credit approval and property requirements.

Unlock the door to homeownership with zero down payment options in Iowa and the Upper Midwest.

Buying a home is the American Dream, but for many potential homebuyers in Urbandale, IA, and the surrounding rural communities, the biggest hurdle standing in the way is the down payment. Saving up 20%, or even 3.5%, of a home’s purchase price can feel overwhelming while managing rent and daily expenses.

But what if you didn’t need a down payment at all? What if you could buy a home just outside the bustling Des Moines metro area with 100% financing?

Enter the USDA Rural Development Loan. Often considered one of the best-kept secrets in the mortgage industry, this program is designed to boost homeownership in rural areas. At Midwest Family Lending, we specialize in helping families navigate these government-backed programs to find the perfect financial fit. Whether you are looking for your first starter home or your forever home, understanding USDA eligibility could save you thousands of dollars upfront.

What Exactly Is a USDA Loan?

A USDA loan is a mortgage loan guaranteed by the U.S. Department of Agriculture. The program’s primary goal is to improve the economy and quality of life in rural America by offering affordable financing options to low-to-moderate-income families.

Because the government guarantees a portion of the loan, lenders like Midwest Family Lending can offer more favorable terms, such as zero down payment and lower interest rates, to borrowers who might not qualify for conventional financing.

It’s Not Just for Farmers

One of the biggest misconceptions about the USDA loan is that you have to buy a working farm or live in the middle of nowhere to qualify. This is simply not true. The USDA’s definition of “rural” is surprisingly broad. Many suburban towns just outside of major cities like Des Moines, Omaha, or Sioux Falls often qualify.

If you are looking to buy a home in a smaller community or on the outskirts of Urbandale, you might be sitting on a goldmine of eligibility without even knowing it.

The Top Benefits of a USDA Rural Development Loan

Why should you consider a USDA loan over an FHA or Conventional loan? Here are the standout benefits that make this program a favorite among our clients:

• 100% Financing (No Down Payment): This is the headline feature. Unlike FHA loans (which require 3.5% down) or Conventional loans (often 3-20% down), a USDA loan allows you to finance the entire purchase price of the home.
• Lower Mortgage Insurance Costs: While USDA loans do require mortgage insurance (an upfront fee and an annual fee paid monthly), the rates are historically lower than those for FHA loans. This keeps your monthly payment more affordable.
• Competitive Interest Rates: Because the loan is backed by the government, lenders can often offer rates that are lower than the market average for conventional loans.
• Flexible Credit Guidelines: While a good credit history helps, the USDA program can be more forgiving regarding credit scores compared to strict conventional requirements.
• Seller Concessions: The seller can contribute up to 6% of the sale price toward your closing costs, potentially allowing you to move in with little to no money out of pocket.

Am I Eligible? Understanding the Requirements

To take advantage of this program, you need to meet specific criteria regarding the property, your income, and your creditworthiness. At Midwest Family Lending, our team of experienced mortgage experts can help you verify your eligibility quickly.

1. Property Eligibility (The “Rural” Factor)

The home must be located in a USDA-eligible area. Generally, this includes open country and towns with a population of fewer than 35,000 people. In Iowa, vast stretches of the state are eligible. Even parts of Dallas County and areas surrounding the Des Moines metro can qualify.

Tip: Don’t assume a home is ineligible just because it’s near a city. Ask us to check the address for you!

2. Income Limits

The USDA loan is a means-tested program, meaning it is designed for low-to-moderate-income households. There are strict income caps based on the size of your household and the county where you are buying. If you earn too much, you may not qualify for this specific program, but we can help you explore other loan options.

Income calculations can be tricky because they include the income of all adult household members, not just the borrowers. However, there are deductions for childcare expenses, dependents, and elderly care that can help you stay under the limit.

3. Credit and Employment

While there is no fixed minimum credit score set by the USDA, most lenders look for a score of at least 640 for a streamlined approval process. You must also demonstrate a stable employment history, typically two years of consistent work.

Loan Comparison: USDA vs. FHA vs. Conventional

Feature	USDA Loan	FHA Loan	Conventional Loan
Down Payment	0%	3.5%	3% – 20%
Mortgage Insurance	Lower rates (Upfront & Annual)	Higher rates (Upfront & Annual)	PMI required if under 20% down
Location Requirement	Must be in Eligible Rural Area	No restrictions	No restrictions
Income Limits	Yes (Maximum income caps)	No	No
Credit Flexibility	Moderate	High	Strict

Not sure which numbers work for your budget? Try our free mortgage calculators to estimate your monthly payments.

Why Work with a Local Mortgage Broker in Urbandale?

When dealing with government-backed loans like the USDA Rural Development program, experience matters. The guidelines can be complex, and having a team that knows the local landscape is invaluable.

Midwest Family Lending isn’t just a lender; we are your neighbors. We have been serving the community for over 25 years, helping families in Iowa, Nebraska, South Dakota, and Colorado say “Yes” to their dreams.

• We Are Trustworthy: We have earned a 5-star reputation because we treat our customers like family. We look out for your best interests, not just the bottom line.
• We Are Fast & Responsive: In a competitive housing market, time is money. We work proactively to keep you ahead of schedule.
• We Are Connected: Real estate professionals recommend us because we have a track record of making “mortgage magic” happen behind the scenes.

Furthermore, we believe in giving back. Through our MFLCares initiative, we support local charities like the Huntington’s Disease Society of America – Iowa Chapter. When you work with us, you are supporting a business that supports your community.

Steps to Apply for a USDA Loan

1. Get Your Ducks in a Row: The first step is a consultation. Contact us to discuss your goals and financial situation.
2. Pre-Qualification: Complete our quick pre-qualification form. This gives us the data we need to check your income eligibility and credit.
3. Property Search: Once you know your budget and eligible areas, you can start house hunting with a real estate agent. We can recommend trusted local agents if you need one!
4. Application & Processing: Once you make an offer, we handle the heavy lifting—verifying documents, ordering the appraisal, and submitting your file to the USDA for approval.
5. Closing: We guide you to the finish line so you can pick up your keys!

Frequently Asked Questions (FAQs)

1. Do I have to be a first-time homebuyer to use a USDA loan?

No! While USDA loans are fantastic for first-time buyers because of the zero down payment requirement, you do not have to be a first-time buyer to qualify. However, you generally cannot own another adequate home in the local area at the time of closing.

2. Can I use a USDA loan to refinance my current home?

Yes, but only if you currently have a USDA loan. The USDA offers a Streamlined Assist Refinance program that allows existing USDA borrowers to refinance for a lower interest rate with very little paperwork and often no appraisal. If you want to refinance a different type of loan into a USDA loan, it is more complex and subject to current restrictions.

3. What are the closing costs for a USDA loan?

Closing costs vary, but they typically range from 2% to 5% of the purchase price. The great news is that USDA loans allow the seller to pay up to 6% of the sale price toward your closing costs. Additionally, if the home appraises for more than the sale price, you may be able to roll some closing costs into the loan amount.

4. How strict are the inspection requirements?

The USDA requires the home to be safe, sanitary, and structurally sound. The appraisal acts as a basic check for these standards. If the appraiser flags issues like a failing roof or peeling paint (on homes built before 1978), those repairs must usually be completed before the loan can close.

5. Is there a maximum loan amount?

Unlike FHA or Conventional loans, the USDA does not have a set maximum loan limit. Instead, your loan amount is determined by your ability to repay the loan (your debt-to-income ratio) and the applicable income limits for your household size.

Ready to Make Your Move?

Don’t let the fear of a down payment keep you renting for another year. The USDA Rural Development loan might be the key to unlocking your new front door.

At Midwest Family Lending, we are dedicated to simplifying the process and guiding you toward the perfect loan. You deserve to feel confident and in control of the biggest purchase of your life.

Let’s get started today!

Apply Now to Check Your Eligibility
or
Find a Licensed Home Loan Originator Near You

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Midwest Family Lending

Address: 2753 99th St, Urbandale, IA 50322
Phone: (515) 252-7107
Email: info@midwestfamilylending.com

Midwest Family Lending Corporation NMLS #4622. Equal Housing Lender. This content is for educational purposes and does not constitute a commitment to lend. Programs, rates, and terms are subject to change without notice.

If the last few years have taught us anything in the real estate world, it’s that timing is everything—but preparation is the key to success. As we look toward 2026, the housing market in Urbandale, IA, and the greater Des Moines metro area is presenting new opportunities for savvy homeowners and prospective buyers.

Whether you are looking to purchase your first home, upgrade to a property that fits your growing family, or leverage your current equity to build wealth, you need a plan. At Midwest Family Lending, we don’t just write loans; we treat you like family. Our goal is to guide you through the noise and help you make financial decisions that support your life goals.

This comprehensive roadmap will walk you through smart strategies for buying, refinancing, and wealth-building in 2026, tailored specifically for our Iowa neighbors.

1. The Urbandale & Central Iowa Market Outlook

Understanding the local landscape is the first step in your journey. While national headlines often paint a broad picture, real estate is hyper-local. In Urbandale and Polk County, we are seeing a market that is stabilizing, offering a more balanced playing field for buyers compared to the frantic pace of previous years.

For 2026, we anticipate:

• More Inventory: As sellers who held off in 2024 and 2025 decide to move, more homes are hitting the market in neighborhoods across Des Moines.
• Stabilized Rates: While no one has a crystal ball, the volatility of interest rates is expected to level out, allowing buyers to budget with more confidence.
• Continued Appreciation: Central Iowa remains a desirable place to live, meaning purchasing a home here continues to be a solid long-term investment.

Pro Tip: Don’t wait for the “perfect” market conditions. The cost of waiting often exceeds the benefit of a slightly lower rate, especially if home prices continue to rise.

2. Buying a Home in 2026: Getting Your Ducks in a Row

If buying a home is on your 2026 resolution list, success starts long before you visit an open house. As a trusted mortgage broker, we help you “get your ducks in a row” so you can make an offer with confidence.

The Mortgage Broker Advantage

Many homebuyers make the mistake of walking into a single bank and accepting whatever rate is offered. At Midwest Family Lending, we are Mortgage Brokers. This means we work for you, not the bank. We shop multiple lenders to find the specific loan product that fits your financial puzzle.

Why does this matter for your 2026 roadmap?

• Lower Rates: By comparing wholesale rates, we can often find lower interest rates than retail banks.
• More Options: We aren’t limited to one set of rules. We have access to Conventional, FHA, USDA, and VA loans.
• Speed: In a competitive Urbandale market, our team is known for closing loans fast—often ahead of schedule.

Pre-Approval vs. Pre-Qualification

To be taken seriously by sellers in 2026, you need a solid pre-approval. A pre-qualification is just an estimate, but a pre-approval from Midwest Family Lending involves a thorough review of your finances. It turns you into a “cash-equivalent” buyer, giving you leverage in negotiations.

Spotlight: VA Home Loans for Iowa Veterans

If you are a veteran or active-duty service member, 2026 is the year to fully utilize the benefits you have earned. We specialize in VA Home Loans, which offer incredible advantages:

• 0% Down Payment: Keep your savings in your pocket.
• No PMI (Private Mortgage Insurance): This saves you hundreds of dollars monthly compared to conventional loans.
• Competitive Rates: VA loans often come with some of the lowest interest rates available.

We are proud to serve those who served. If you are in Urbandale or anywhere in Iowa, let us help you maximize your Certificate of Eligibility (COE).

3. Refinancing Strategies: Work Your Equity

If you already own a home, your roadmap for 2026 should focus on optimization. Refinancing isn’t just about lowering your rate; it’s about restructuring your debt to build wealth faster.

Cash-Out Refinance: Consolidate and Renovate

• Pay Off High-Interest Debt: Swap credit card debt (often 20% APR or higher) for a mortgage rate that is significantly lower. This can save you hundreds, sometimes thousands, in monthly cash flow.
• Home Improvements: Reinvest in your property by finishing a basement or updating a kitchen, which further increases your home’s value.

Rate and Term Refinance

If you bought a home when rates were at their peak, 2026 might offer the window you have been waiting for to lower your monthly payment. Even a small reduction in your interest rate can result in massive savings over the life of your loan. Click here to see if refinancing makes sense for you right now.

4. Building Wealth: The “Customers for Life” Approach

• Consistency: Making regular payments builds equity.
• Strategic Payments: Using our Extra Payment Calculator, you can see how adding just $50 or $100 a month to your principal can shave years off your mortgage.
• Community Investment: We believe wealth is also about community health. Through our MFLCares initiative, we support local charities like the Huntington’s Disease Society of America (Iowa Chapter). When you work with us, you are working with a team that gives back to the Des Moines area.

Comparison: Local Mortgage Broker vs. Big Box Bank

Choosing the right partner is critical for your 2026 roadmap. Here is how Midwest Family Lending compares to a standard big-box bank.

Feature	Midwest Family Lending (Broker)	Big Box Bank / Online Lender
Loan Options	Access to multiple lenders and hundreds of loan programs to find the best fit.	Limited to their own specific bank products.
Interest Rates	Wholesale rates often lower than retail.	Set retail rates with little room for negotiation.
Local Knowledge	Experts in Urbandale, Des Moines, and Iowa markets. We live here!	Often located in out-of-state call centers; unfamiliar with local laws.
Service Speed	Fast, responsive, and able to meet tight closing deadlines.	Can be bogged down by bureaucracy and red tape.
Relationship	You are treated like family. “Customers for Life.”	You are often just a transaction number.

Frequently Asked Questions (FAQs)

1. Is 2026 a good time to buy a home if I am a first-time buyer?

Yes! Real estate is historically one of the safest long-term investments. While rates fluctuate, building equity is always superior to paying rent (which builds your landlord’s equity, not yours). We can help you explore first-time homebuyer programs that offer down payment assistance or favorable terms to get you into the market sooner.

2. What is the difference between a fixed-rate and an adjustable-rate mortgage (ARM)?

With a fixed-rate mortgage, your interest rate (and principal/interest payment) stays the same for the life of the loan (e.g., 30 years). With an ARM, the rate is fixed for an initial period (like 5 or 7 years) and then adjusts periodically based on market indices. ARMs can offer lower initial rates, which might be a smart strategy if you plan to move or refinance before the adjustment period begins.

3. How much cash do I really need to close on a home?

You will typically need funds for three things: Earnest Money (a deposit when you make an offer), the Down Payment (a percentage of the home price), and Closing Costs (processing fees, title insurance, etc.). However, with programs like VA loans (0% down) or USDA loans, your cash-to-close can be significantly lower. We also help negotiate seller credits to cover some of these costs.

4. Why should I choose a local Urbandale lender over an online app?

Real estate is local. Local real estate agents prefer working with local lenders like Midwest Family Lending because they know we deliver. We understand the local tax implications, we have relationships with local appraisers, and we are available when you need us—not just during banking hours in a different time zone. A strong local lender letter can actually make your offer more attractive to sellers.

Ready to Start Your Journey?

Your 2026 homeownership roadmap starts with a conversation. Don’t navigate the market alone. Whether you are looking to buy your dream home in Urbandale, refinance to save money, or just have questions about your options, The Midwest Family team is here to help.

We have earned our 5-star reputation because we are trustworthy, experienced, and we genuinely care about your success. Let’s get you home.

Get Started Today – Apply Online
Or call us directly: (515) 252-7107
Midwest Family Lending – You deserve to be treated like family!

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Midwest Family Lending Corporation
NMLS #4622
Chuck West, President
2753 99th St, Urbandale, IA 50322
Equal Housing Lender. Licensed in Iowa, Nebraska, South Dakota, and Colorado.

The information provided in this blog post is for educational purposes only and does not constitute financial advice. Please consult with a licensed mortgage professional to discuss your specific situation.