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Clay County, Indiana FHA, VA, and USDA Loan Information

Table of Contents

-How do you purchase a home in Clay County
-What are the government loan limits in Clay County, IN?
-What parts of Clay County are eligible for USDA loans?
-Do I need flood insurance?
-How do I learn about Property Taxes in Clay County
-What is the median home price in Clay County, IN?
-How many people live in Clay County?
-What are the major cities?
-How do I see FHA- and VA-Approved homes for sale?
-Is there a cost to have a real estate agent represent me?
-What closing costs do I need?
-How can I get assistance with closing costs?
-About Clay County
-How much of a loan can I qualify for, based on my income?
-Approved Condominium Projects in Clay County

How do you purchase a home in Clay County

Are you interested in buying a home in Clay County? This is a step by step guide to all the ins and outs of the homebuying process. For more detail about FHA loans, be sure to check out our complete guide. We also have an in-depth guide to VA loans and the USDA’s Rural Development home loan program.
For now, let’s look at the basic steps to buying a home – and what you’ll have to look out for in Clay County.

  1. Get in touch with a loan officer – give us a call at 877-432-5626 We can help you figure out what type of loan you might qualify for. Programs through the VA, USDA, and FHA allow you to buy a home with a small down payment – or no down payment at all. We will also check your credit and income to see how much of a loan you can qualify for. When we do this, we do a “soft pull” on your credit. This is different from an official credit inquiry and won’t hurt your credit score.
  2. Compare loan offers. Either call us or fill out the form by filling up the form at the top right of this page.
  3. Give your Loan Officer the information they need to find you a loan For a purchase loan or cash-out refinances:
    • Your ID
    • Previous two years of W2s
    • Most recent 30 days paystubs
    • Most recent 60 days bank statements
    • Landlord and HR/Payroll Department contact info
      For a refinance loan, you will also need information on the loan you want to refinance.
  4. Contact our Loan officers to compare the interest rates and APRS – but keep in mind that the fixed- and adjustable-rate mortgages are apples and oranges. Use the Loan Estimate to compare the true costs of each loan, both month-to-month and over the life of the mortgage.
  5. Find a home Get connected with a FedHome Loan Centers Real Estate Agent. Once you meet with them to talk about your wants and needs, you can sign up for the property search feed. This will give you alerts about homes for sale in Clay County. Now you’re ready to preview properties and start touring homes.
  6. Make an offer and negotiate the terms of the sale
  7. Get the necessary and recommended inspections Required Inspections:
    • Termite Inspection
    • Well or septic inspections, if applicable
    • We can help you check if your home is in one of the Clay County flood hazard areas.
      Recommended Inspections:
      Home Inspection, Roof Inspection, Sewer Inspection
  8. Get the home appraised Construction loans require a construction appraisal and permit approval
  9. Lock in your interest rate Pro Tip: Wait until the appraisal to lock in your loan rates. If it turns out you need to make repairs, it can push the closing back. Then you run the risk of losing that rate or having to pay an extension fee.
  10. Close the deal and get packing! You’re ready to go!


What are the Loan Limits for Clay County?

  • FHA Loan Limit $331,760 (Single family residence) / $424,800 (Duplex) / $513,450 (Triplex) / $638,100 (Fourplex)
  • USDA Loan Limit $265,400
  • VA Home Loan Limit $0 down up to $3,000,000 / 2 open VA loans at one time $510,400 *(Call 877-432-5626 for details).

What Parts of Clay County are eligible for USDA Loans?

  • Clay County is eligible for a USDA Rural Development home loan.
  • Eligible Zip Code: 47833, 47834, 47837, 47840, 47841, 47846, 47853, 47857, 47881.

Do I need Flood Insurance?

  • The FHA, USDA, and VA all require flood insurance in Special Flood Hazard Areas.
  • Due to the shape of the landscape of Clay County, there are flood hazard areas all over the County, with the biggest ones located south of Eel River, east of Birch Creek.

How do I learn about Property Taxes in Clay County?

  • Barb Scott is the Clay county tax assessor. Her office is located at 609 East National Avenue, Room 118, Brazil, Indiana 47834, and she can also be reached by calling (812) 448-9013.
  • The state of Indiana offers several tax incentives to promote the state’s economic development. These include a decreasing corporate tax rate, which in 2021 will drop from 6.5% to 4.9% to incentivize the creation of new businesses in the state. Additionally, the state has no gross receipts tax or inventory tax. Programs like the Economic Development for a Growing Economy offer tax credits for the creation of new jobs and improve the living standard for residents of the state.

What is the Median Home Price in Clay County?

Currently, the median home value for Clay County is $105,878. Moreover, the median household income for residents of the County is $53,021.

How many people live in Clay County?

As of 2019, Clay County’s population is 26,225, which includes about 1,669 Veterans. Demographically speaking, 95% of the population is White, with 1% Hispanic, and 1% Mixed Race.

What are the major cities?

The County has one city and six towns, with the only city being Brazil, which serves as the county seat. The other six towns in the county are Carbon, Center Point, Clay City, Harmony, Knightsville, and Staunton.

How do I see FHA- and VA-Approved homes for sale?

You can view all of the properties available for sale in Clay County through our Multiple Listing Service. In addition, you can see approved condos at the bottom of this page.

Is there a cost to have a real estate agent represent me?

The seller must pay the real estate professionals’ commission, not the buyer. This means that, as a homebuyer, there is no cost to have a real estate agent represent you. In fact, it’s a good idea to get your own agent in order to have someone in your corner during the negotiation process. For more information about real estate agents, click here.

What closing costs do I need?

For FHA loans, closing costs can end up being 3-4% of the loan amount. These costs include origination fees from the lender, any discount points purchased for a better interest rate, and pre-paid items like insurance and taxes.

How can I get assistance with closing costs?

There are several ways to reduce the amount you have to pay at closing. One way is to get down payment assistance. The FHA’s Within Reach program provides grants to help low- and middle-income families with their down payment.

About Clay County

Established in 1825, the Clay County, Indiana encompasses a square area of 360 square miles. The County was named in honor of Henry Clay, the seventh Speaker of the House of Representatives, and the ninth Secretary of State. Additionally, the County’s early economy depended on its many coal companies.

Currently, the most significant employment industries in the County are manufacturing, healthcare, and retail trade. Hence, the most common occupations are in the production, office & administrative support, and sales & related occupations.

Educationally speaking, the County is served by the Clay Community School District, which has about ten schools that educate approximately 4,183 students every year. Overall the schools are ranked as above average due to the high quality of education that they provide.

In addition to its economy and education, the County is also home to several recreational areas like the Dietz Recreational Park, the Shakamak State Park, and Exotic Feline Rescue Center. Both of these areas provide visitors the ability to enjoy the outdoors and look at beautiful wildlife.

Furthermore, the County also hosts to several annual events, which include the Loyalty Day Parade, the Strawberry Festival, the Cory Apple Festival, and many others. All of which makes the County a great place to live in and enjoy its affordable cost of living and college-town amenities.

How much of a loan can I qualify for, based on my income?

Monthly Income Purchase Price
$2,628.90 $195,175.91
$2,832.00 $210,254.55
$3,181.50 $236,202.27
$3,612.00 $268,163.64
$3,985.50 $295,893.18
$4,361.10 $323,778.64
$4,971.90 $369,125.91
$5,761.50 $427,747.73
$6,892.20 $520,625.00
$5,199.60 $368,791.82
$5,743.80 $408,815.91
$6,249.90 $450,287.73
$6,998.10 $501,960.45
$9,776.70 $725,845.91
$5,568.00 $413,381.82
$6,574.80 $488,129.09
$7,569.60 $561,985.45
$5,141.40 $381,710.00
$6,345.30 $471,090.45
$7,639.80 $567,197.27
$8,360.10 $620,674.09
$9,260.70 $687,536.82
$10,095.30 $749,499.55
$12,165.00 $903,159.09
$13,929.60 $1,034,167.27
$17,511.00 $1,300,059.09
$18,406.80 $1,366,506.06

Purchase Price subject to credit and income evaluation.

Approved condos in Clay County, Indiana

Submit an application today to get a condo approved in Clay County, as there aren’t any FHA or VA approved condos at the moment. Contact us by calling (877) 432-5626 and we can help you through the condo approval process. 

Find Your Dream Home in Clay County

FedHome Loan Centers can help you find and finance the perfect home in the county. We’re dedicated to making the process smooth and stress-free! Contact us today!

Complete a quick and easy home loan application with FedHome Loan Centers today!