Ellsworth, IL USDA Eligibility

USDA Eligibility Guide

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Ellsworth, IL USDA Loan Eligibility Guide

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

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    More About Ellsworth, Illinois

    Ellsworth is a village in Dawson Township, McLean County, Illinois, United States. The population was 184 at the 2020 census. It is part of the Bloomington–Normal Metropolitan Statistical Area.

    Ellsworth is in eastern McLean County, 16 miles (26 km) east of Bloomington, the county seat, and 9 miles (14 km) north-northeast of Le Roy.

    According to the U.S. Census Bureau, Ellsworth has a total area of 0.22 square miles (0.57 km2), all land.

    Ellsworth was laid out on December 6, 1871, by Jonathan H. Cheney (1833–1920), Almon Brigham Ives (1816–1887), and Oliver Ellsworth, whom the town was named after. Cheney was one of three sons of early McLean County settler Jonathan Cheney active in promoting the Lafayette Bloomington and Mississippi Railroad; when his brother, Haines Cheney, was in the Illinois Senate he had helped to arrange the charter of the railroad. Almon B. Ives was a Bloomington lawyer specializing in land law; both Cheney and Ives were on the board of directors of the new railroad. In 1876 the railroad was leased to the Lake Erie and Western Railroad and in 1879 was incorporated into that road. Construction began on the railroad in 1869. The new townsite occupied 40 acres (16 ha) on each side of the tracks. The plan of Ellsworth was almost identical to that of its neighbor, Arrowsmith. A 200-foot (61 m) swath of railroad land cut the town into two almost equal parts. Most of the early commercial development was along Main Street south of the tracks. The depot was on the south side of the tracks, and the early elevator on the north side.

    In November 1871 an advertisement appeared in the Bloomington Pantagraph saying that on November 8 an auction of 150 lots would be held at the site of the new town. The advertisement praised the fertility of the surrounding countryside and stressed that the farms were of moderate size. Readers were told that the new town would be the logical point for shipping grain. They were also told that by shipping from Ellsworth their grain would go through Toledo, Ohio, “avoiding the grain scalpers of Chicago.” All interested people were to gather at the Illinois Central Depot in Bloomington at 9:00 in the morning. A free train would take them to the site of the new town. A free lunch would be provided, and Bloomington brewers Meyer and Wochner would provide the beer. Some two hundred people consumed 200 loaves of bread, 150 pounds of boiled ham, 60 barrels of cheese and a barrel of crackers. A. J. Wampler bought the first lot. Most lots sold at from forty to sixty-five dollars.