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Considering a usda Loan?


Here are a Few Things to Consider

What is a USDA Loan?

USDA stands for United States Department of Agriculture. USDA mortgages provide low-cost insured home mortgage loans with no down payment requirement.


A USDA mortgage might be right for you if you are interested in buying a rural property as your primary home with a low out of pocket investment.

What types of loans does USDA offer?

USDA Guaranteed Rural Housing Mortgage: USDA Guaranteed Loans are the most common type of USDA mortgage 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. All USDA Guaranteed Loans carry 30 year terms and are set at a fixed rate. We can help you with this type of loan.


USDA Direct Rural Housing Mortgage: USDA Direct Housing Loans are less common than USDA Guaranteed Loans and are only available for low and very low income households to obtain home ownership, 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. We cannot help you with this type of loan.

What are some of the benefits of a USDA mortgage?

  • USDA Loans require NO money down – up to 103.5% financing (includes funding fee).
  • Closing costs can be rolled into the loan or paid by the seller.
  • There is NO maximum loan amount.
  • You do NOT need assets to qualify.
  • Qualifying for a USDA loan with lower credit scores is possible. (Current min required credit score is 640)
  • USDA Mortgages are secure 30-year fixed terms at low market interest rates.
  • USDA Loans are for ANY new & existing single family residence located in a USDA eligible area.
  • Property being purchased can be a regular sale, short sale, foreclosure home, etc.

Borrower Eligibility

USDA mortgages are not for everyone. Applicants may have an income of up to 115% of the median income for the area. Area income limits for this program can be found with the link below. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In other words, you cannot use a USDA loan to buy an additional property if your current property is considered adequate for the existing family. In addition, applicants must have reasonable credit histories. Typically a 640 or higher credit score is required.

Indiana Income Guidelines by County/City

Download Guidelines

*NOTE: USDA income calculations to determine eligibility are different that income calculations to determine how much you will qualify to borrow. If you think you may qualify for this program you can apply with our secure online application and we can get you pre-approved for a USDA home loan. If you make too much money to qualify then we will advise you on the next best way.

Property Eligibility

USDA home loans are only eligible in rural areas or areas outside of major metropolitan areas. The boundaries are determined by USDA and do not necessarily coincide with city limits. Most of Indiana is eligible but there are sections of the state that are off limits.


Feel free to visit the official USDA Property Search Engine to determine if the home you are interested in is located in an eligible area. You can search by specific address or you can click on the map to view eligible and ineligible areas by County.

Look at the Property Eligibility Map

View Here
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