Aurora, IN USDA Eligibility

USDA Eligibility Guide

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Aurora, IN USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Aurora, IN USDA Rural Development Loan, is designed to assist low-to-moderate-income households in purchasing homes in eligible rural and some suburban areas. Here are the general eligibility requirements:
1. Property Eligibility:

    • The home must be located in a USDA-eligible rural or suburban area around Aurora, IN. The USDA provides an online tool to help potential borrowers determine if a specific property is in an eligible area.
    • The property must be used as the borrower’s primary residence.
    • The home must meet all local codes and program regulations.

2. Applicant/Household Eligibility:

    • U.S. citizenship or permanent residency is required.
    • The borrower must be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet.
    • The applicant must have a stable and dependable income, typically verified by two years of consistent employment. The income must also be sufficient to cover the mortgage payment, including taxes and insurance.
    • The household’s adjusted income must be at or below the applicable low-to-moderate income limit for the area.
    • A reasonable credit history. While a specific credit score is not mandated, a credit score of 640 or higher is typically required for streamlined processing. However, those with lower scores may still be eligible but may undergo a more stringent evaluation.

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    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Aurora, IN USDA service center or the USDA’s online tools to see specific limits.

    4. Loan and Debt Ratios:

    • Typically, a 29/41 ratio is followed. This means that 29% or less of your monthly income can go towards your mortgage (Principal, Interest, Taxes, and Insurance) and 41% or less of your monthly income can go towards your total debt (this includes the mortgage and other debt obligations). Exceptions can be made in certain circumstances.

    5. Other Requirements:

    • Borrowers must personally occupy the dwelling as their primary residence.
    • The borrower must be legally able to take on the loan obligation.
    • First-time homebuyers are required to take a homeowner counseling class in some situations.

    6. Loan Terms:

    • The loan term is typically 30 years.
    • No down payment is usually required.
    • The interest rate can be set by the lender but is subject to USDA review.

    7. Guarantee Fee and Annual Fee:

      • The USDA charges an upfront guarantee fee, which can be rolled into the loan amount.
      • There’s also an annual fee, which is a percentage of the remaining principal amount, typically spread out in monthly installments.

    It’s crucial to remember that while these are the general requirements for Aurora USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Aurora, IN USDA home loan professionals. Get pre-approved with our easy and stress free Aurora, IN USDA home mortgage today.

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    More About Aurora, Indiana

    Aurora is a city in Center Township, Dearborn County, Indiana, United States. The population was 3,750 at the 2010 census.

    Aurora is located at 39°3′31″N 84°54′23″W / 39.05861°N 84.90639°W / 39.05861; -84.90639 (39.058551, -84.906351).

    According to the 2010 census, Aurora has a total area of 3.087 square miles (8.00 km2), of which 2.76 square miles (7.15 km2) (or 89.41%) is land and 0.327 square miles (0.85 km2) (or 10.59%) is water.

    Aurora was platted in 1819. It was named for Aurora, the goddess of dawn in Roman mythology. Aurora was incorporated in 1848.

    Aurora is known for its historic downtown area and the ornate Hillforest mansion built for Thomas Gaff who earned his fortune shipping goods on the Ohio River by steamboat. The mansion was designed by architect Isaiah Rogers and was completed in 1855 in the Italian Renaissance style. The design is symmetrical. Details include deep overhangs, arched windows and balconies and porches. Hillforest was declared a National Historic Landmark in 1992.