Indiana USDA Loans

What are Indiana USDA Home Loans?
USDA stands for United States Department of Agriculture. In Indiana, a USDA Mortgage provides a low-cost insured home mortgage loan that suits a variety of options. A USDA mortgage is likely the best home loan option if you want to purchase a home with no down payment. If you’re unsure about your credit rating, or have concerns about a down payment when you’re doing a home loan comparison, USDA Rural Mortgage Loans can give you piece of mind with zero-down, super low closing costs and low monthly mortgage insurance.

What Types of Loans does USDA offer in Indiana? 
Currently, there are two kinds of USDA Home Loans available in Indiana for single family households:

. USDA Guaranteed Loans
USDA Guaranteed Home Mortgage Loans are the most common type of USDA Loan in Indiana and allow for higher income limits and 100% financing for home purchases. USDA Guaranteed Loan applicants may have an income of up to 115% of the median household income for the area. Area income limits for this program can be viewed here. All USDA Rural Housing Loans carry 30 year terms and are set at a fixed rate.

. USDA Direct  Loans
USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain homeownership, as defined by the USDA. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to see area income limits for this program.

What factors determine if I am eligible for a USDA Loan in Indiana?
To be eligible for A USDA Rural Loan in Indiana, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income (29% ratio). Your credit background will be fairly considered. A 620 FICO credit score is required to obtain a USDA Rural Housing Loan approval through most lenders. You must also have enough income to pay your housing costs plus all additional monthly debt (41% ratio). These ratios can be exceeded somewhat with compensating factors. Applicants for loans may have an income of up to 115% of the median income for the area. Maximum USDA Guaranteed Loan income limits for your area can be found at here. Maximum USDA Direct Loan income limits for your area can be found at here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance.

What is the maximum amount that I can borrow? 
The maximum amount for an USDA home loan is determined by:

Maximum Loan Amount: The is no set maximum loan amount allowed for USDA Rural Home Loans. Instead, your debt-to-income ratios will dictate how much home your can afford (29/41 ratios). Additionally, your total household monthly income must be within USDA allowed maximum income limits for your area. Maximum USDA Guaranteed Loan income limits for your area can be found at here.

Maximum financing: The maximum USDA Rural Development Loan amount is 102% of the appraised value of the home (100% plus the 2% USDA RD Loan guarantee fee).

How much money will I need for the down payment and closing costs?
USDA Rural Development Mortgage Loans require no down payment and they allow for the closing costs to be included in the loan amount (appraisal permitting).

What property types are allowed for USDA Rural Loan Mortgages?
While USDA Mortgage Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and single family residences.

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Indiana USDA Loan Adjusted Maximum Income Limits by County
Updated 05/01/2012

na USDA Mortgage Limits by County

County Name
1-4 Person Households
(Guaranteed Loans)
5-8 Person Households 
(Guaranteed Loans)
DECATUR, IN (MICRO)
ADAMS
$73,600
$97,150
FORT WAYNE, IN (MSA)
ALLEN
$73,600
$97,150
COLUMBUS, IN (MSA)
BARTHOLOMEW
$73,600
$97,150
LAFAYETTE, IN (MSA)
BENTON
$73,600
$97,150
NON-METRO
BLACKFORD
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
BOONE
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
BROWN
$73,600
$97,150
LAFAYETTE, IN (MSA)
CARROLL
$73,600
$97,150
LOGANSPORT, IN (MICRO)
CASS
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
CLARK
$73,600
$97,150
TERRE HAUTE, IN (MSA)
CLAY
$73,600
$97,150
FRANKFORT, IN (MICRO)
CLINTON
$73,600
$97,150
NON-METRO
CRAWFORD
$73,600
$97,150
WASHINGTON, IN (MICRO)
DAVIESS
$73,600
$97,150
AUBURN, IN (MICRO)
DE KALB
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
DEARBORN
$73,600
$97,150
GREENSBURG, IN (MICRO)
DECATUR
$73,600
$97,150
MUNCIE, IN (MSA)
DELAWARE
$73,600
$97,150
JASPER, IN (MICRO)
DUBOIS
$73,600
$97,150
ELKHART-GOSHEN, IN (MSA)
ELKHART
$73,600
$97,150
CONNERSVILLE, IN (MICRO)
FAYETTE
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
FLOYD
$73,600
$97,150
NON-METRO
FOUNTAIN
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
FRANKLIN
$73,600
$97,150
NON-METRO
FULTON
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
GIBSON
$73,600
$97,150
MARION, IN (MICRO)
GRANT
$73,600
$97,150
BLOOMINGTON, IN (MSA)
GREENE
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
HAMILTON
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
HANCOCK
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
HARRISON
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
HENDRICKS
$73,600
$97,150
NEW CASTLE, IN (MICRO)
HENRY
$73,600
$97,150
KOKOMO, IN (MSA)
HOWARD
$73,600
$97,150
HUNTINGTON, IN (MICRO)
HUNTINGTON
$73,600
$97,150
SEYMOUR, IN (MICRO)
JACKSON
$73,600
$97,150
GARY, IN METROPOLITAN DIVISION
JASPER
$73,600
$97,150
NON-METRO
JAY
$73,600
$97,150
MADISON, IN (MICRO)
JEFFERSON
$73,600
$97,150
NORTH VERNON, IN (MICRO)
JENNINGS
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
JOHNSON
$73,600
$97,150
VINCENNES, IN (MICRO)
KNOX
$73,600
$97,150
WARSAW, IN (MICRO)
KOSCIUSKO
$73,600
$97,150
MICHIGAN CITY-LA PORTE, IN (MSA)
LA PORTE
$73,600
$97,150
NON-METRO
LAGRANGE
$73,600
$97,150
GARY, IN METROPOLITAN DIVISION
LAKE
$73,600
$97,150
BEDFORD, IN (MICRO)
LAWRENCE
$73,600
$97,150
ANDERSON, IN (MSA)
MADISON
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
MARION
$73,600
$97,150
PLYMOUTH, IN (MICRO)
MARSHALL
$73,600
$97,150
NON-METRO
MARTIN
$73,600
$97,150
PERU, IN (MICRO)
MIAMI
$73,600
$97,150
BLOOMINGTON, IN (MSA)
MONROE
$73,600
$97,150
CRAWFORDSVILLE, IN (MICRO)
MONTGOMERY
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
MORGAN
$73,600
$97,150
GARY, IN METROPOLITAN DIVISION
NEWTON
$73,600
$97,150
KENDALLVILLE, IN (MICRO)
NOBLE
$73,600
$97,150
CINCINNATI-MIDDLETOWN, OH-KY-IN (MSA)
OHIO
$73,600
$97,150
NON-METRO
ORANGE
$73,600
$97,150
BLOOMINGTON, IN (MSA)
OWEN
$73,600
$97,150
NON-METRO
PARKE
$73,600
$97,150
NON-METRO
PERRY
$73,600
$97,150
JASPER, IN (MICRO)
PIKE
$73,600
$97,150
GARY, IN METROPOLITAN DIVISION
PORTER
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
POSEY
$73,600
$97,150
NON-METRO
PULASKI
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
PUTNAM
$73,600
$97,150
NON-METRO
RANDOLPH
$73,600
$97,150
NON-METRO
RIPLEY
$73,600
$97,150
NON-METRO
RUSH
$73,600
$97,150
SCOTTSBURG, IN (MICRO)
SCOTT
$73,600
$97,150
INDIANAPOLIS-CARMEL, IN (MSA)
SHELBY
$73,600
$97,150
NON-METRO
SPENCER
$73,600
$97,150
SOUTH BEND-MISHAWAKA, IN-MI (MSA)
ST. JOSEPH
$73,600
$97,150
NON-METRO
STARKE
$73,600
$97,150
ANGOLA, IN (MICRO)
STEUBEN
$73,600
$97,150
TERRE HAUTE, IN (MSA)
SULLIVAN
$73,600
$97,150
NON-METRO
SWITZERLAND
$73,600
$97,150
LAFAYETTE, IN (MSA)
TIPPECANOE
$73,600
$97,150
KOKOMO, IN (MSA)
TIPTON
$73,600
$97,150
NON-METRO
UNION
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
VANDERBURGH
$73,600
$97,150
TERRE HAUTE, IN (MSA)
VERMILLION
$73,600
$97,150
TERRE HAUTE, IN (MSA)
VIGO
$73,600
$97,150
WABASH, IN (MICRO)
WABASH
$73,600
$97,150
NON-METRO
WARREN
$73,600
$97,150
EVANSVILLE, IN-KY (MSA)
WARRICK
$73,600
$97,150
LOUISVILLE-JEFFERON COUNTY, KY-IN (MSA)
WASHINGTON
$73,600
$97,150
RICHMOND, IN (MICRO)
WAYNE
$73,600
$97,150
FORT WAYNE, IN (MSA)
WELLS
$73,600
$97,150
NON-METRO
WHITE
$73,600
$97,150
FORT WAYNE, IN (MSA)
WHITLEY
$73,600
$97,150

 

USDA Loan information for Indiana’s top cities:

Anderson Indiana USDA LoansBloomington Indiana USDA LoansElkhart Indiana USDA Loans
Evansville Indiana USDA LoansFort Wayne Indiana USDA LoansGary Indiana USDA Loans
Hammond Indiana USDA LoansIndianapolis Indiana USDA LoansLafayette Indiana USDA Loans
Muncie Indiana USDA LoansSouth Bend Indiana USDA LoansTerre Haute Indiana USDA Loans

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