Special FINANCING PROGRAM

 
 

SPECIAL FINANCING PROGRAM

The United Sates Department of Agriculture (USDA) has two distinct programs; the 502 Direct Loan Program and the Guarantee Loan Program. The USDA provides 100% mortgage loans in rural areas to assist qualified individuals and households, whose gross adjusted income falls below the area median income (AMI), to purchase a home. 

Income and household size typically determine which program works best for the applicant. Competitive and or below market interest rates, minimal closing cost and longer mortgage terms provide opportunity and affordability for many homeowners utilizing such programs. These loans are restricted to rural areas.

 
 
 
 

 

Indiana USDA 502 Direct Loan Program

  • Monthly payments set at 24%-29% of buyer's adjusted income
    (typically from $400-$950/month including taxes and insurance)

  • Interest rate subsidy down to 1% based on adjusted household income

  • No down payment required (100% loans)

  • $1,800-$2,000 closing cost (possible to be included in the loan)

  • 33 year fixed rate mortgage at competitive interest rates

  • No PMI or MIP insurance required

  • Taxes and insurance included in payment

  • Flexible custom home plans to choose from

  • Possible government grants from $2,000-$20,000
    (based on area, availability, and need of applicant)

  • Subject to maximum area sales price 

Requirements/Qualifications

  • US citizen or legal resident status

  • Stable job or income under 80% of the area medium income

  • Acceptable credit history

  • Buyer's need based on minimal cash reserves and need for adequate housing

  • Adjustable income within program requirements

  • Determination of buyer's ability to make loan payments based on current income, debt obligations and payments

  • Successful completion of Home Buyer's Education Course

  • Home purchase under maximum sales price for area

  • Funds limited based on yearly allocation

Indiana Guaranteed Loan Program

  • No down payment required (100% loans)

  • Minimal closing cost which can be paid by builder

  • Annual fee 0.4%

  • Fixed 30 year mortgage at competitive interest rates

  • Taxes and insurance escrow included in payment

  • Possible tax credit certificate (MCC) to apply for eligible applicants

Requirements/Qualifications

  • US citizen or legal resident status

  • Stable job or income under 115% of the area medium income

  • Buyer's need based on minimal cash reserves and need for adequate housing

  • Acceptable credit history

  • Determination of buyer's ability to make loan payments based on current income, debt obligations and payments

 
 

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Payment based on the USDA 502 Direct Loan Program. Terms used are 24% of adjusted household income at $47,600 per year. 
Interest rate fixed at 2.875% as of December 8th, 2016 over the 33 year loan.  F.A.H.E #52473