Altamont, IL USDA Eligibility

USDA Eligibility Guide

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Altamont, IL USDA Loan Eligibility Guide

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

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    More About Altamont, Illinois

    Altamont is a city in Effingham County, Illinois, United States. The population was 2,216 at the 2020 census. Altamont is part of the Effingham, Illinois Micropolitan Statistical Area.

    Legend says Griffin Tipsword came to live with the Kickapoo Indians, who were indifferent to the coming of a Caucasian man. Tipsword was white by birth and Native American by adoption. He was a pioneer, a missionary preacher, hunter and medicine man among the Native Americans. Tipsword’s family name was Sowards. He called himself Tipsword after coming to Illinois. Tipsword was a veteran of the Revolutionary War, first fighting at Ramsour’s Mill in the Carolinas. Griffin died in 1845 and was buried on the banks of Wolff Creek (Tipsword family cemetery, Effingham), leaving three sons, John, Isaac, and Thomas, who left many descendants in the area.

    Altamont, the “City of Plain”, was laid out in Mound Township, considered the richest and best township in Effingham County – being mostly prairies and farm ground – slightly rolling along Big Creek, Coon Creek, and Second Creek. Mound Township was settled early by German immigrants from the Rhine by way of Pennsylvania and Ohio.

    The name “Altamont”, like “Mound Township”, was bestowed by J.W. Conlogue because of the elevation or “mound” to the northwest. The first part of the word means altitude, the second mount or mound. Conlogue was a romantic, naming his town from Latin.

    In History of Effingham County, editor William Henry Perrin wrote in 1883: “The name of Mound Township was bestowed upon it in consequence of what is known as the neighborhood of Blue Mound, a slight elevation of Section 8, which is nearly all a kind of mound, the apex being in the center of the section, and having an altitude of seventy-eight feet above the bed of the Vandalia Railroad, which passes near it. Recently, the Government has erected a signal observatory upon it, some seventy-five to one hundred feet in height, from the top of which one may look across the States of Missouri and Arkansas and see the cowboys watching their herds on the prairies of Texas.”