How Does USDA Rural Development in Indiana Work?
Are you a interested in buying a home in rural Indiana, and a first time home buyer? It’s difficult time to think about saving a down payment to purchase your first home, especially with the housing market scaled down. But it’s not a impossible or a bad idea to think about a USDA Rural Development option, which allows you to skip the down payment for your new home (you only need cash to close for things like funding an escrow account).
The USDA Rural Development (RD) has done a lot to improve the real estate market by making it easier for people to own their own homes. RD loans offer mortgage options to assist people to purchase their homes with little or now cash out of their own pockets.
A USDA Rural Development (RD) mortgage requires that the home you’re interested in fall within geographical areas outside a major metropolitan city limit. AKA, suburbs. But consider this - you don’t have to live way out in the sticks to consider an RD loan. If you’re living in Northern Indiana, you’ll find it’s mostly rural except for a few cities like South Bend, or Fort Wayne. It’s easy to find an area that is RD eligible, and many of these cities have several suburban areas very close to them. Think about towns and villages such as Macy, Kentland or Brook for example.
Take the town of French Lick, Indiana, known for its natural springs, casino, and history of French trading post. French lick is RD-eligible where you can finance 100 percent of the purchase price of your new home.
The Office of Rural Development can give you information on how quality of life is improving in rural America. They’re working to help develop and restore suburbs and towns. And now, with a loan portfolio of almost $90 billion, first-time home buyers from across the country can take out a rural development loan to get out of rental and begin to build equity with very little up front. There is history behind RD loans – two decades – with a credible success rate. In 1990 they were first called RDA, and became RD in 1994.
What’s more is that USDA Rural Development loans can be guaranteed by private sector lenders, such as AmeriFirst Home Mortgage, under the Guaranteed Loan program. This means that if the borrower defaults on the loan, RD will pay the private financier for the loan. The borrow works with and makes payments to the private lender. An RD loan makes the possibility of owning a home available to a higher percentage of people who experience the common barrier to owning a home from lack of funds for a down payment. AmeriFirst provides you with informative tools and tips to obtaining an RD loan, as well as other types of loans available.
At AmeriFirst, you can find information about programs such as the Direct Home Loans, given to people whose income falls below 80 percent of the median income level within their communities. This can help those who would not otherwise be eligible to get a mortgage or own a home. You can also learn about the Home Repair Loan and Grant Program given to people whose homes need repair or maintenance. Many of these funds are granted to people with disabilities to make the home more easily accessible and comfortable.
The AmeriFirst first time buyers page provides you with a free First Home Guide as well as information galore on options for obtaining your first home mortgage loan. Moving from renting into buying is a big first step and they want you to be well-informed.
And you can check out a cool fact sheet on USDA Rural Development that can help you wrap your head around the many aspects of an RD loan.
- A rural development loan can help you save in more ways than one:
- It can provide you with 100% financing so that you can build your savings.
- You get a reprieve from city-life, while still living close to the city happenings.
- You might have a bit more land to cultivate then with a home in the city.
- Since you’re not renting, your money is being put to good use. And you can set your own rules, like how many pets you’d like to have inside your own home.
- An RD loan can allow you to buy an old fixer-upper to provide character and charm to your house. And an RD loan program can cover your construction costs.
To find out whether or not the town you’re interested in is eligible for an RD, loan, check out the USDA rural development neighborhood eligibility page. There you can determine your eligibility for specific USDA home mortgage loan programs and whether or not your income meets certain guidelines.
Check out Amerifirst Home Mortgage for more information on your options for obtaining and RD loan in Indiana.
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