Indiana Home Buyers Looking For True 100% Financing should Consider using the USDA Rural Development Guaranteed Home Loan Program.

One of the best kept mortgage secrets in Indiana is the USDA Guaranteed Loan Program. This program was put in place to help moderate income Indiana home buyers purchase homes in rural housing areas. Highlights of this program include:

• No money down! Cash Reserves are NOT required.
• No PMI (Private Mortgage Insurance) needed
• Low 30 year Fixed Rates!
• Backed by United States Department of Agriculture
• Expanded Credit Guidelines (similar to FHA and VA)
• Many eligible areas. USDA Property Eligibility Details
• Single Family Homes eligible (No duplexes, "fixer-uppers", mobile homes)
• You DO NOT need to be a First Time Home Buyer, open to all Home Buyers!

COMPLETE THE FOLLOWING FORM TO SEE IF YOU QUALIFY!

CREDIT GUIDELINES- USDA

Here are some general guidelines for credit qualification. Important Note: Do not disqualify yourself based upon this information, let us qualify you! We can take a look at your scenario, and you may be surprised to find out that you do credit qualify when you thought that you didn't!

• Credit Scores of 620 and above will normally automatically credit qualify!
• No maximum loan amount. Your income determines how much you can qaulify for!
• Base debt ratios of 29%/41%, and we will calculate these for you! These ratios can be expanded in certain cases.
• Past foreclosures and bankruptcies need to be 12 months old regardless of your credit score.
• All outstanding collections & judgements need to be paid if credit score is below 620.

Again, please let us take a look at your individual situation and give you an official qualification. Don't disqualify yourself!

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PROPERTY ELIGIBILITY

There are two main criteria used to determine if a property is eligible, (1) Location and (2) Condition of the Home.

Location: To determine if your chosen home is eligible, simply visit the USDA Property Eligibility Website and type in the address of the property. If you don't know the address of the property, you can click on the map of Indiana, then click on the map of your chosen county, and a map of your county will come up. The areas shaded in the darker orange color are not eligible, and the lighter shaded areas are good to go! You will find that most areas are ELIGIBLE! If you have any trouble using this system, just call us and we can help you determine if your chosen home is in an eligible area.

Condition of the Home: The home must be in working order, USDA will not allow "fixxer-uppers" with mechanical issues. Swimming pools are not allowed, and an FHA appraisal will be used to determine the condition of the home. Condos and Townhomes are OK, no Duplexes or Mobile Homes.

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INCOME ELIGIBILITY

Rather than limiting the loan size, the USDA has implemented income limits. These income limits are very generous, as they are 115% of the median income level for the County you are buying in. Your income will determine what size of a loan you can qualify for. Important Note: Regardless of who will be on the loan, the USDA requires ALL income from all adult members of the household to be taken into consideration when determining income eligibility. But, don't worry, let us calculate it for you!

EXAMPLE: A 4-person family in Henry County (2 adults, 2 children) has a gross income of $80,310 per year. Child care for the two children ages 12 or less is $10,000 annually. Gross income minus Child care expenses minus a $480 deduction for each child = $69,350 Adjusted Gross Income. Even though the Gross Income is initially over the limit for Henry County, the Adjusted Gross Income qualifies! Please do not disqualify yourself! Let us calculate this for you! (Henry county income limits are $73,600 for a 1-4 person household, and $97,150 for a 5-8 person household)

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