Aledo, IL USDA Eligibility

USDA Eligibility Guide

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Aledo, IL USDA Loan Eligibility Guide

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

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    More About Aledo, Illinois

    Aledo /əˈliːdoʊ/ is a city in Mercer County, Illinois, United States. The population was 3,633 at the 2020 census. It is the county seat of Mercer County.

    Aledo was established in the 1850s when the railroad was extended to that point. It was briefly named “DeSoto”, after Hernando de Soto, until the discovery of an identically named village in Jackson County. Development began in the 1850s, and the oldest surviving buildings date from the following decade. A post office has been in operation at Aledo since September 24, 1856. In 1857, the county seat was moved to Aledo from Millersburg after a countywide referendum. Aledo was incorporated on August 15, 1863. In the 1950s, the first Tastee-Freez in the United States was built in the downtown. The Downtown Aledo Historic District was established in 2016, with 75 contributing historic buildings in the downtown area.

    Aledo is located in central Mercer County at 41°12′1″N 90°45′0″W / 41.20028°N 90.75000°W / 41.20028; -90.75000 (41.200172, -90.749956). Illinois Route 17 passes through the city center on Third Street, leading east 8 miles (13 km) to Viola and west 14 miles (23 km) to New Boston on the Mississippi River. Illinois Route 94 follows IL 17 along Southeast Third Street turns south at the city center onto South College Avenue. IL 94 leads south-southwest 29 miles (47 km) to Biggsville and northeast 22 miles (35 km) to U.S. Route 67 on the southern outskirts of the Quad Cities.

    According to the U.S. Census Bureau, Aledo has a total area of 2.36 square miles (6.11 km2), of which 0.012 square miles (0.03 km2), or 0.51%, are water. The city sits on high ground that drains north to the Edwards River, a westward-flowing direct tributary of the Mississippi, and south to Pike Run, a tributary of Pope Creek, which flows to the Mississippi at Keithsburg.

    As of the census of 2010, there were 3,640 people, 1,568 households, and 947 families residing in the city. The racial makeup of the city was 98.5% (3,586) white; 0.6% (22) African American; 0.0% (1) Native American; 0.3% (12) Asian; 0.1% (4) from other races; and 0.4% (15) from two or more races. Hispanic or Latino of any race were 1.2% (45) of the population.