USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in Indiana don’t work in the same manner as USDA Guaranteed Loans in Indiana. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.Indiana USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

Indiana USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $56,303 in Indiana, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for that area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in IN are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in Indiana for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in Indiana?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in Indiana besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in Indiana, FHA Loan in Indiana, or if you’re a veteran or qualified family member, VA Loans in Indiana. You may also want to research if any helpful Indiana down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in Indiana. Search home loan limits for your area below.

Indiana USDA Direct Loan Limits

Direct Loan Limit
Adams $251,862
Allen $251,862
Bartholomew $251,862
Benton $251,862
Blackford $251,862
Boone $275,080
Brown $275,080
Carroll $251,862
Cass $251,862
Clark $253,000
Clay $251,862
Clinton $251,862
Crawford $251,862
Daviess $251,862
Dearborn $251,862
Decatur $251,862
DeKalb $251,862
Delaware $251,862
Dubois $251,862
Elkhart $251,862
Fayette $251,862
Floyd $253,000
Fountain $251,862
Franklin $251,862
Fulton $251,862
Gibson $251,862
Grant $251,862
Greene $251,862
Hamilton $275,080
Hancock $275,080
Harrison $253,000
Hendricks $275,080
Henry $251,862
Howard $251,862
Huntington $251,862
Jackson $251,862
Jasper $294,400
Jay $251,862
Jefferson $251,862
Jennings $251,862
Johnson $275,080
Knox $251,862
Kosciusko $251,862
LaGrange $251,862
Lake $294,400
LaPorte $251,862
Lawrence $251,862
Madison $275,080
Marshall $251,862
Martin $251,862
Miami $251,862
Monroe $251,862
Montgomery $251,862
Morgan $275,080
Newton $294,400
Noble $251,862
Ohio $251,862
Orange $251,862
Owen $251,862
Parke $251,862
Perry $251,862
Pike $251,862
Porter $294,400
Posey $251,862
Pulaski $251,862
Putnam $275,080
Randolph $251,862
Ripley $251,862
Rush $251,862
Scott $253,000
Shelby $275,080
Spencer $251,862
St. Joseph $251,862
Starke $251,862
Steuben $251,862
Sullivan $251,862
Switzerland $251,862
Tippecanoe $251,862
Tipton $251,862
Union $251,862
Vanderburgh $251,862
Vermillion $251,862
Vigo $251,862
Wabash $251,862
Warren $251,862
Warrick $251,862
Washington $253,000
Wayne $251,862
Wells $251,862
White $251,862
Whitley $251,862

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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