Many homebuyers are aware of VA loans and FHA loans, and know that if they are eligible for these programs, they could save them money. But not as many homebuyers know about USDA Rural Housing Loans. These loans are backed by the U.S. Department of Agriculture and have been around for a few years.
The Indianapolis area is surrounded by beautiful countryside, so there are quite a few opportunities to buy housing here with a USDA loan. Below, you can learn a few things which you might not know about this exciting loan program.
Things You May Not Know About USDA
- You can use USDA loans for more than just home purchase. While USDA loans are available for purchase of a home in a rural location, that is not the only way they can be used. They are also available if you want to buy land for a future home, construct a home, move a home to a rural plot of land, or renovate a home. Refinancing is available as well.
- Modular homes are permitted. Speaking of home construction, you may not be aware that modular homes are eligible for USDA funding. Modular design is a major trend right now, especially in rural areas. If you have been thinking about building a modular home of your own, a loan backed by the USDA may be the ideal financing for your project.
- This does not have to be your first home. There is a common misconception that FHA loans are for first time homebuyers only. The same misconception extends to USDA loans. In both cases, it is incorrect. You can qualify for an FHA loan as a repeat homebuyer, and you can qualify for a USDA loan as a repeat buyer as well.
- The maximum loan amount depends on individual factors. You may be wondering how much you can borrow with a USDA loan. As it so happens, there is no maximum cap which applies as a rule to all loans backed by the USDA. There will be a maximum cap for your loan, but it will be determined by your situation, including your debt-to-income ratio and other aspects of your finances.
- USDA “Rural” loans are not just for the “rural” locations you might be picturing. Finally, Indianapolis is obviously an ideal area for USDA loans, considering how much of the area around the city is completely rural. But you may be thinking that you do not want to live all the way out in the country. You may be surprised to realize that you may still qualify for a USDA loan, even if you are thinking about moving to an area on the outskirts of the city.
The exurbs of the city as well as some of the surrounding towns still fit within the eligibility guidelines. Any area which has a population of 35,000 or under can qualify which includes all counties surrounding Marion County (donut counties). That means that there are opportunities to use USDA loans to finance home purchase in many different communities throughout the region.
Contact Grandview Lending To Apply For a USDA Loan
Now you know some things about USDA loans which you may not have known before. If you have more questions about USDA Rural Housing Loans, or you are interested in applying for one, please get in touch with us at (317) 255-0062. We look forward to helping you buy, renovate, build or refinance a rural home in the Indianapolis area.