Spiceland, IN USDA Eligibility

USDA Eligibility Guide

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Spiceland, IN USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Spiceland, 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 Spiceland, 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 Spiceland, 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 Spiceland USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Spiceland, IN USDA home loan professionals. Get pre-approved with our easy and stress free Spiceland, IN USDA home mortgage today.

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    Mortgage Resource Center

    More About Spiceland, Indiana

    Spiceland is a town in Spiceland Township, Henry County, Indiana, United States. The population was 890 at the 2010 census.

    Spiceland was platted in 1850. The town was so named on account of spice bushes near the original town site. It was primarily an agricultural area for spices.

    In February 2001 James Parker and Robert Tulloch, wanted in the 2001 Dartmouth College murders in New Hampshire, were arrested at a truck stop here. They had hitchhiked with truckers to this point and been tracked down by police after a driver’s casual announcement on his CB radio that the pair were traveling west.

    According to the 2010 census, Spiceland has a total area of 0.5 square miles (1.29 km2), all land.

    As of the census of 2010, there were 890 people, 353 households, and 256 families living in the town. The population density was 1,780.0 inhabitants per square mile (687.3/km2). There were 389 housing units at an average density of 778.0 per square mile (300.4/km2). The racial makeup of the town was 98.5% White, 0.1% African American, 0.2% Asian, 0.7% from other races, and 0.4% from two or more races. Hispanic or Latino of any race were 0.7% of the population.