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

Table of Contents

-Steps to purchasing a home in Jefferson County
-What are the government loan limits in Jefferson County, IN?
-What parts of Jefferson County are eligible for USDA loans?
-Do I need flood insurance?
-How do I learn about Property Taxes in Jefferson County
-What is the median home price in Jefferson County, IN?
-How many people live in Jefferson 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 Jefferson County
-How much of a loan can I qualify for, based on my income?
-Approved Condominium Projects in Jefferson County

Steps to purchasing a home in Jefferson County

Are you interested in buying a home in Jefferson 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 Jefferson 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 Jefferson 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 Jefferson 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!

FAQ

What are the Loan Limits for Jefferson 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 Jefferson County are eligible for USDA Loans?

  • All of Jefferson County is eligible for a USDA Rural Development home loan.
  • Eligible Zip Codes: 47224, 47230, 47231, 47243, 47250.

Do I need Flood Insurance?

  • The FHA, USDA, and VA all require flood insurance in Special Flood Hazard Areas.
  • In Jefferson County, most flood hazard areas are located in low elevation areas around water bodies like the Ohio River, the Muscatatuck River, and the Indian Kentuck Creek.

How do I learn about Property Taxes in Jefferson County?

  • Karen Mannix is the Jefferson County tax assessor. Her is located at 300 East Main Street, Room 102, Madison, Indiana 47250, or can be reached by calling (812)265-8906.
  • 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 Economic offer tax credit for creating new jobs and improving the state’s living standard.

What is the Median Home Price in Jefferson County?

Currently, the median home value for Jefferson County is $135,086. Also, the median household income for residents of the county is $51,119.

How many people live in Jefferson County?

As of 2019, Jefferson County’s population is 32,308, which includes about 2,402 veterans. Demographically speaking, the county’s population is 92% White, 3% Hispanic, and 2% Black.

What are the major cities?

The county has four cities, including the city of Madison, which serves as the county seat. The three other cities in the county are Brooksburg, Dupont, and Hanover.

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

You can view all of the properties available for sale in Jefferson 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 Jefferson County

Located in the state’s southeastern corner on land, which covers about 362 square miles, Jefferson County, Indiana is one of Indiana’s oldest counties. Founded in 1811 and named after Thomas Jefferson, the third President of the United States, the county was originally home to the Shawnee people.

Economically speaking, the county is home to multiple strong employment industries, with the biggest manufacturing, health care, and retail trade. Therefore, the county’s most common jobs are production, office & administrative support, and management occupations.

As far as education is concerned, the county is home to two public school districts like Southwestern-Jefferson County Schools and Madison Consolidated Schools. Both districts have about ten schools, which range from kindergarten to twelfth year in high school. The county is also home to a higher education institution in Hanover College, a private 4-year institution.

Outside of its educational and workforce, the county is home to various parks and recreational opportunities. Parks like the Bicentennial Park, Johnson Lake Park, and John Paul Park, offer residents and visitors great places to have picnics and family gatherings.

In addition to everything mentioned above, the county is also host to several annual events. Making the county an exciting place to live in. These events include the 4th of July Parade and Fireworks, Red, White & Boo, the Light Up Madison, and the Very Merry Madison Christmas Parade. 

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 Jefferson County, Indiana

Jefferson County has no FHA or VA approved condos. However, it is possible to put a condo through the approval process. Call us at (877) 432-5626, our team will help you through the condo approval process.

Find the Perfect Home in Jefferson County

FedHome Loan Centers can help you find and finance the perfect home in Jefferson County. 

Contact us to learn what steps you can take to become a homeowner.