The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in Indiana aren’t the same thing as USDA Section 502 Guaranteed Loans in Indiana. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.

Can I get a USDA Direct Loan in Indiana?

USDA Loan RequirementsUSDA Direct Loans in Indiana are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of IN is $56,303, although that figure may vary from county to county. The maximum yearly income limits for Indiana USDA Direct Loan approval are listed below. Other than meeting Indiana USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:

  • You have no decent clean, safe, and sanitary housing presently.
  • You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
  • You must use this property for your primary residence.
  • You must possess the legal capacity to be able to contract a loan
  • You must meet citizenship or eligible noncitizen requirements.
  • You can’t be barred or suspended from participation in federal programs.

Additionally, the subject property must meet the following conditions:

  • Be a modestly sized home for that area.
  • Market value can’t be in excess of the areas applicable loan limit.
  • Can’t be designed for the production of income.

What areas in IN are eligible for USDA Direct Loans?

The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in IN here.

How much can I borrow with a USDA Direct Home Loan?

The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.

Are there other mortgage options with low down payment or no down payment in Indiana?

Yes, there may be other low down payment mortgage options, and no down payment mortgage options in Indiana besides USDA Direct Loans. You can begin by researching Indiana USDA Guaranteed Loans, Indiana FHA Loans, and Indiana VA Loans if you’re a veteran in IN or qualified family member. You may also want to look into helpful programs for down payment assistance in Indiana.

Indiana USDA Direct Loan Maximum Income Limits

1 Person
2 Person
3 Person
4 Person
5 Person
Adams County, IN $51,600$51,600 $51,600$51,600 $68,100
Anderson, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Blackford County, IN $51,600$51,600 $51,600$51,600 $68,100
Bloomington, IN HUD Metro FMR Area $59,050$59,050 $59,050$59,050 $77,950
Carroll County, IN HUD Metro FMR Area $52,300$52,300 $52,300$52,300 $69,050
Cass County, IN $51,600$51,600 $51,600$51,600 $68,100
Cincinnati, OH-KY-IN HUD Metro FMR Area $65,050$65,050 $65,050$65,050 $85,850
Clinton County, IN $52,700$52,700 $52,700$52,700 $69,550
Columbus, IN MSA $57,750$57,750 $57,750$57,750 $76,250
Crawford County, IN $51,600$51,600 $51,600$51,600 $68,100
Daviess County, IN $51,600$51,600 $51,600$51,600 $68,100
Decatur County, IN $51,600$51,600 $51,600$51,600 $68,100
DeKalb County, IN $52,700$52,700 $52,700$52,700 $69,550
Dubois County, IN $60,100$60,100 $60,100$60,100 $79,350
Elkhart-Goshen, IN MSA $53,750$53,750 $53,750$53,750 $70,950
Evansville, IN-KY MSA $53,750$53,750 $53,750$53,750 $70,950
Fayette County, IN $51,600$51,600 $51,600$51,600 $68,100
Fort Wayne, IN MSA $55,050$55,050 $55,050$55,050 $72,650
Fountain County, IN $51,600$51,600 $51,600$51,600 $68,100
Franklin County, IN $57,050$57,050 $57,050$57,050 $75,300
Fulton County, IN $51,600$51,600 $51,600$51,600 $68,100
Gary, IN HUD Metro FMR Area $58,250$58,250 $58,250$58,250 $76,900
Gibson County, IN $53,300$53,300 $53,300$53,300 $70,350
Grant County, IN $51,600$51,600 $51,600$51,600 $68,100
Greene County, IN $51,600$51,600 $51,600$51,600 $68,100
Henry County, IN $51,600$51,600 $51,600$51,600 $68,100
Huntington County, IN $51,600$51,600 $51,600$51,600 $68,100
Indianapolis-Carmel, IN HUD Metro FMR Area $63,900$63,900 $63,900$63,900 $84,350
Jackson County, IN $51,600$51,600 $51,600$51,600 $68,100
Jasper County, IN HUD Metro FMR Area $56,900$56,900 $56,900$56,900 $75,100
Jay County, IN $51,600$51,600 $51,600$51,600 $68,100
Jefferson County, IN $51,600$51,600 $51,600$51,600 $68,100
Jennings County, IN $51,600$51,600 $51,600$51,600 $68,100
Knox County, IN $51,600$51,600 $51,600$51,600 $68,100
Kokomo, IN MSA $52,150$52,150 $52,150$52,150 $68,850
Kosciusko County, IN $53,200$53,200 $53,200$53,200 $70,200
Lafayette-West Lafayette, IN HUD Metro FMR Area $56,300$56,300 $56,300$56,300 $74,300
LaGrange County, IN $51,600$51,600 $51,600$51,600 $68,100
Lawrence County, IN $51,600$51,600 $51,600$51,600 $68,100
Louisville, KY-IN HUD Metro FMR Area $61,100$61,100 $61,100$61,100 $80,650
Marshall County, IN $52,000$52,000 $52,000$52,000 $68,650
Martin County, IN $51,600$51,600 $51,600$51,600 $68,100
Miami County, IN $51,600$51,600 $51,600$51,600 $68,100
Michigan City-La Porte, IN MSA $53,700$53,700 $53,700$53,700 $70,900
Montgomery County, IN $51,600$51,600 $51,600$51,600 $68,100
Muncie, IN MSA $51,600$51,600 $51,600$51,600 $68,100
Noble County, IN $52,000$52,000 $52,000$52,000 $68,650
Orange County, IN $51,600$51,600 $51,600$51,600 $68,100
Owen County, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Parke County, IN $51,600$51,600 $51,600$51,600 $68,100
Perry County, IN $51,600$51,600 $51,600$51,600 $68,100
Pike County, IN $51,600$51,600 $51,600$51,600 $68,100
Pulaski County, IN $51,600$51,600 $51,600$51,600 $68,100
Putnam County, IN HUD Metro FMR Area $55,700$55,700 $55,700$55,700 $73,500
Randolph County, IN $51,600$51,600 $51,600$51,600 $68,100
Ripley County, IN $51,600$51,600 $51,600$51,600 $68,100
Rush County, IN $51,600$51,600 $51,600$51,600 $68,100
Scott County, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
South Bend-Mishawaka, IN HUD Metro FMR Area $52,500$52,500 $52,500$52,500 $69,300
Spencer County, IN $56,400$56,400 $56,400$56,400 $74,450
Starke County, IN $51,600$51,600 $51,600$51,600 $68,100
Steuben County, IN $51,600$51,600 $51,600$51,600 $68,100
Sullivan County, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Switzerland County, IN $51,600$51,600 $51,600$51,600 $68,100
Terre Haute, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Tipton County, IN $54,950$54,950 $54,950$54,950 $72,550
Union County, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Wabash County, IN $51,600$51,600 $51,600$51,600 $68,100
Warren County, IN $58,300$58,300 $58,300$58,300 $76,950
Washington County, IN HUD Metro FMR Area $51,600$51,600 $51,600$51,600 $68,100
Wayne County, IN $51,600$51,600 $51,600$51,600 $68,100
White County, IN $52,300$52,300 $52,300$52,300 $69,050

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

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