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An Indiana USDA loan is a home loan that is backed by the United States Department of Agriculture. The loan program falls under their single-family housing. The loan is designed for low to moderate-income families in Indiana and across the U.S. in rural areas. The loan program offers a 100% no money down feature. It is the only non-veteran loan that has this feature.
Anyone is eligible that meets the credit requirements and wants to purchase in a qualifying area.
It is straightforward to determine if a home qualifies for the Indiana USDA loan. The best practice is to use the USDA eligibility map located on the USDA website. The map is simple to use. You can enter the address of a property, and it will indicate if that address qualifies. If you do not have a property picked out, you can do a general area search, and it is color-coded to indicate what areas qualify and what areas do not qualify.
No, you do not have to be a first-time homebuyer to use the Indiana rural development loan. Homeowners that want to buy a new home can participate as well. If someone currently owns a home, they must sell their current home in most cases before closing on their new home with the Indiana USDA rural development loan.
The Indiana USDA loan does not have traditional mortgage insurance; however, it has its version, a guarantee fee. The guarantee fee is found in two places with the USDA loan. The first is an upfront fee of 1% of the total loan amount. The second is a yearly fee that is paid out monthly.
No, a land only loan is not allowed with the Indiana USDA loan. The product is under the USDA single-family housing program, and this is for residential loans and not just land only loans.
While the USDA does have various agriculture loan types, the single-family housing program does not allow income producing properties.
No, all individuals on the USDA mortgage must occupy the property as their primary residence.
In Indiana and all other states, the USDA home loan has household income limits. The program is designed for low to moderate-income families, and to ensure this is adhered to, one of the underwriting requirements is to ensure the total household income does not exceed the threshold for the given area. The USDA loan uses 115% of the median income for a given area. This will vary from county to county and state to state.
Yes, the USDA home loan does not have minimum residence requirements is in order to participate in the program. You can from another state or to another state with no issues as long as all other qualifying factors are met.
Yes, pools are acceptable with the rural development loan. Due to the climate in Indiana with the hotter summers, it is very common to see homes with swimming pools. The pool must be fully functional and free from any defects or safety issues.
In most cases, you cannot purchase a home that is in need of major repair with the USDA loan. It is important to consult with your loan officer on exactly what repairs need to be made and if it is acceptable or not.
Yes, the USDA home loan Indiana does allow properties with septic tanks. It is very common in more rural areas to see homes with septic tanks. They must be fully functional with no issues.
No homebuyers cannot buy an investment property with a USDA home loan. The program is specifically designed for owner-occupied properties.
The Indiana USDA loan does not have a limitation on the amount of acreage a property can have. The biggest issue arises when more than 30% of the total value is in the land. The transaction starts to become more of a land loan than a home loan, and the program is designed for single family homes. The other issue when there is excess land is that the appraiser may have a problem finding comparable sales.
Yes, homebuyers that have had a previous bankruptcy are still eligible for the USDA home loan. The requirement associated with bankruptcy is that the homebuyer be at least three years removed from a chapter 7 bankruptcy.
The rural development loan does not technically have a minimum credit score. This is left up to the individual lender. It is a best practice to speak with your loan officer to determine what their score requirements are. The most credit score range seen with lenders is 620-660.
Homeowners in Indiana may refinance with the USDA loan. They must currently have a USDA loan to do so. If they have any other loan type on their home, they are not eligible to refinance into a USDA loan.
The Indiana USDA direct loan is when a homebuyer works directly with their local USDA office in order to obtain a USDA loan. The Indiana USDA guaranteed loan is when a home buyer works with a private lender or bank to obtain a USDA loan.
Yes, homebuyers can put money down with a USDA home loan. It is not required because the program offers 100% no money down, but some homebuyers still decide to use a down- payment in order to lower their monthly payment.
Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. This is not a commitment to lend. Programs, rates, terms and conditions are subject to change without notice.