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USDA Mortgages
USDA Mortgages
Through the USDA Rural Development Program, First Option Mortgage can offer a 30-year low fixed rate mortgage in Indianapolis with no money down.
Why Choose USDA
USDA Loans are primarily used to help low-income individuals or households purchase homes in rural areas.
How Does A Home Become Eligible?
- The house must be in an eligible rural area, but many suburban areas qualify
- The home must be owner-occupied
- Single family homes; some condos may be eligible
Summary
- Minimum credit score: 640
- Minimum down payment: None
- DTI: Max of 31/43%,
- Gift funds: Allowed with stipulations
- Seller Concessions: Up to 6%
- Mortgage Insurance (MI): Required
- Occupancy type: Primary only
Advantages
- No down payment
- Closing costs may be financed base don higher appraised value
- Monthly MI is lower than all other loan programs
- Lower fixed rates
- No maximum loan limit
- Eligible in St Johns, Clay, Nassau, and Putnam Counties
Disadvantages
- Only available in USDA Eligible Locations
- Up-front Guarantee Fee of 1% (rolled into the loan)
- Requires USDA approval before closing causing longer underwriting turn times
- Not eligible for renovations
- Income restrictions which are based on number of household members and household income
- Financing more than 100% value of house (resale implications)
