Abbotsford, WI USDA Eligibility

USDA Eligibility Guide

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Abbotsford, WI USDA Loan Eligibility Guide

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

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    More About Abbotsford, Wisconsin

    Abbotsford is a city in Clark (mostly) and Marathon counties in the U.S. state of Wisconsin. The population was 2,275 at the 2020 census. Of this, 1,665 were in Clark County, and 610 were in Marathon County. Abbotsford is nicknamed “Wisconsin’s First City” due to its alphabetical place on a list of Wisconsin cities.

    In 1872, the Wisconsin Central Railroad cleared its right of way through the forest which would become Abbotsford, heading north for Ashland. Rails were built through the town site in 1874. In 1879 the directors of the Wisconsin Central decided to build west from Colby to Chippewa Falls, to connect there with the Chippewa Falls & Western and ultimately St. Paul. However, they found that Colby Hill was not a good site for a junction and rail yard, so they instead planned the east–west line 2.5 miles north of Colby. The place was called Colby Junction from 1879 to 1880, then renamed for Edwin H. Abbott of the Wisconsin Central.

    Abbotsford incorporated as a village in 1894. The village incorporated as a city in 1965.

    Abbotsford is located at 44°56′48″N 90°19′6″W / 44.94667°N 90.31833°W / 44.94667; -90.31833 (44.946716, -90.318333).

    According to the United States Census Bureau, the city has a total area of 2.71 square miles (7.02 km2), all of it land.