Indiana USDA Home Loan Program
With home prices nearing all time lows, there hasn’t been a better time to purchase a home in decades. If you’re looking to purchase a home in this buyer’s market you may be interested to hear about one of the best home loan programs in the country, the Indiana USDA home loan program. USDA Home Loans in Indiana offer low cost 30 year fixed rate mortgages to Indiana residents with low mortgage insurance with little to no money down.
The Indiana USDA home loan program is one of the only home loan programs in the country that require absolutely down payment on the purchase of a home. Instead of needing to come up with a 20-30% down payment which can cost you literally tens of thousands of dollars upfront, you can purchase and move into a USDA home with almost no money upfront. The only upfront costs that you’ll need to pay with a USDA loan are a mandatory upfront funding fee of 2% and closing costs.
Rural Home Loans
The Indiana USDA Guaranteed Home loan program was created to help low to moderate income families buy low interest homes in designated Indiana rural areas. Because rural areas have been hit hardest by this economic downturn, this influx of government guaranteed loans is vital for the continuation of the American rural way of life. By having a program that offers 100% rural home loan financing to struggling middle to low income families, not only does it boost local rural economies, but gives struggling, hard working families a real chance at home ownership.
USDA Eligible Properties in Indiana
While USDA home loans are specifically created for properties in rural Indiana areas, there actually some properties in small towns and suburban communities that may qualify. An Indiana USDA eligible rural area is any area that is completely rural in nature or has less than 10,000 residents. However, depending on your local USDA field office’s USDA loan eligibility and qualification criteria town and cities with up to 25,000 residents may be eligible. Some of these towns include areas in Gary, Columbus, Evansville, Gibson county, Perry County, Spencer County, just to name a few. Whether you want to find a great property in the rural heart land of the great state of Indiana or you want to find a great deal on a mortgage in a small Indiana town, the USDA home loan program has something for everyone.
USDA Credit Requirements
While the USDA home loan program is well known for being one of the most credit lenient mortgage programs on the market you still must have a credit history that reflects a reasonable willingness to meet debt obligations as they become due. The USDA will not accept anyone into their home loan program who has debts that are currently in collections, and generally will require that you have no debts in collections in the last 12 months. You will also need to have a minimum credit rating of around 640 in order to qualify. However, there are certain USDA lenders who may accept a credit score lower than 640 as long as you can prove that your low credit score is due to circumstances beyond your control and that you’re working hard to rebuild your credit rating.
