Afton, MN USDA Eligibility

USDA Eligibility Guide

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Afton, MN USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Afton, Minnesota

    Afton (/ˈæftən/ AF-tən) is a city in Washington County, Minnesota, United States. The population was 2,886 at the 2010 United States Census. It lies on a small bay where Valley Creek empties into the St. Croix River, several miles north of its confluence with the Mississippi River.

    Afton is well known for Afton Alps, the largest ski and snowboard area in the Twin Cities metropolitan area. It is home to Afton State Park on the St. Croix River. Due to these two destinations and its quaint small-town appearance in a major metropolitan area, Afton receives a fair amount of local tourism in the form of day trips. The 2018 US Winter Olympic Gold Medalist cross-country skier Jessie Diggins is from Afton.

    The first settlers in the area arrived in 1837. The settlement of Afton was platted in 1855, with the name chosen from a poem (Sweet Afton) by Robert Burns. A post office has been in operation at Afton since 1857. The city contains three properties listed on the National Register of Historic Places: the 1856 Erastus Bolles House, the 1864 Newington Gilbert House, and the 1867 Cushing Hotel.

    The city has a total area of 26.42 square miles (68.43 km2); 25.05 square miles (64.88 km2) is land and 1.37 square miles (3.55 km2) is water. Main routes include Hudson Road, County Roads 18, 21, and 71; and Minnesota Highway 95. Afton borders Lake St. Croix Beach, Lakeland, and St. Mary’s Point to the east. It also borders West Lakeland Township to the north, Denmark Township to the south, and Woodbury to the west.

    As of the 2010 United States Census, there were 2,886 people, 1,081 households, and 863 families in the city. The population density was 115/sqmi (44.4/km2). There were 1,143 housing units at an average density of 45.6/sqmi (17.6/km2). The racial makeup of the city was 93.3% White, 0.7% African American, 0.4% Native American, 4.3% Asian, 0.1% Pacific Islander, 0.6% from other races, and 0.7% from two or more races. Hispanic or Latino of any race were 1.7% of the population.