Cerro Gordo, IL USDA Eligibility

USDA Eligibility Guide

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Cerro Gordo, IL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Cerro Gordo, Illinois

    Cerro Gordo, nicknamed Fat Hill, is a town in Piatt County, Illinois, United States. The population was 1,316 at the 2020 census.

    According to the 2010 census, Cerro Gordo has a total area of 0.77 square miles (1.99 km2), all land.

    When the Mexican American War began General John S. Williams took command. At the battle of Cerro Gordo (Mexico) he led the troops in a victory over Mexican troops. He took the nickname of “Cerro Gordo” Williams. After the battle, he returned to Illinois and settled in Bement. About the same time (1855) the people of the town of Griswold chose to move the town from the stagecoach line along the river to the path of the Great Western Railroad. The town was platted by Sheridan Wait and Henry Durfee. “Cerro Gordo” Williams was one of the citizens, as they had other citizens that fought in the battle of Cerro Gordo, they selected the name Cerro Gordo. When the Civil War erupted, “Cerro Gordo” Williams returned to Kentucky and became a general in the Army of the Confederacy. On May 31, 1864, his residence was destroyed by fire, with arson being suspected. After the Civil War “Cerro Gordo” Williams having nothing to return to, moved to a farm near Mount Sterling, KY and served in the Kentucky legislature.

    Cerro Gordo was the birthplace of Charlie Taylor, an inventor and mechanic who created the engine used in the first powered flight by the Wright Brothers in 1903. It is also the hometown of former college football player and noted snowboarding enthusiast Bryson Davis.

    As of the census of 2000, there were 1,436 people, 560 households, and 417 families residing in the village. The population density was 1,938.0 inhabitants per square mile (748.3/km2). There were 583 housing units at an average density of 786.8 per square mile (303.8/km2). The racial makeup of the village was 99.65% White, 0.14% African American, 0.07% Asian, and 0.14% from two or more races. Hispanic or Latino of any race were 0.07% of the population.