Anoka, MN USDA Eligibility

USDA Eligibility Guide

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Anoka, MN USDA Loan Eligibility Guide

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

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    More About Anoka, Minnesota

    Anoka (/əˈnoʊkə/ ə-NOH-kə) is a city in and the county seat of Anoka County, Minnesota, United States. Its population was 17,142 at the 2010 census. Anoka is the
    “Halloween Capital of the World” because it hosted one of the first Halloween parades in 1920. It continues to celebrate the holiday each year with several parades. Anoka is a northern suburb of the Twin Cities. U.S. Highways 10 / 169 and State Highway 47 are three of Anoka’s main routes, and it has a station on the Northstar Commuter Rail line to Minneapolis.

    Colonists first settled the site that is now Anoka in 1844. By the mid-1850s, Anoka had a school, a store and a flour mill. In 1856, C. C. Andrews called it a “large and handsome village” and noted that pine logs were floated down the Rum River to sawmills there. The city was formally incorporated in 1878. The name Anoka was derived from two Indian words. The native Dakota used A-NO-KA-TAN-HAN, meaning “on both sides”, or “from both sides”, referring to its location on the banks of the Rum River. The native Ojibwa used ON-O-KAY, meaning “working waters”.[citation needed]

    Anoka has a strong claim to having provided the first Union Army volunteers during the Civil War, as noted by a small plaque at the corner of West Main Street and Park Street. Alexander Ramsey, Minnesota’s governor in 1861, was in Washington, D.C. when Fort Sumter was fired upon. He immediately offered a regiment to the War Department, and telegraphed former governor Willis Gorman and Lieutenant Governor Ignatius L. Donnelly that morning. Gorman, attending a district court session in Anoka, received the note by messenger from St. Paul and called a court recess, asking for volunteers. Aaron Greenwald, who has an “island” named after him on Lake George, and five others stepped forward; Greenwald was the first to sign. He died on July 5, 1863, after sustaining a mortal wound as a member of the 1st Minnesota Regiment in defense against Pickett’s Charge at the Battle of Gettysburg.[citation needed]

    Anoka lies at the confluence of the Rum and Mississippi Rivers, approximately 20 miles (30 km) northwest of Minneapolis. According to the United States Census Bureau, it has an area of 7.21 square miles (18.67 km2), of which 6.70 square miles (17.35 km2) is land and 0.51 square miles (1.32 km2) is water. Adjacent communities include Dayton, Ramsey, Andover, Coon Rapids, and Champlin. The USGS tracks the city by the ID 639396 and the coordinates of
    45°11′52″N, 093°23′14″W. 45°11′52″N 093°23′14″W / 45.19778°N 93.38722°W / 45.19778; -93.38722

    As of the census of 2010, there were 17,142 people, 7,060 households, and 4,202 families living in the city. The population density was 2,558.5 inhabitants per square mile (987.8/km2). There were 7,493 housing units at an average density of 1,118.4 per square mile (431.8/km2). The racial makeup of the city was 88.0% White, 4.7% African American, 1.0% Native American, 1.8% Asian, 1.6% from other races, and 3.0% from two or more races. Hispanic or Latino of any race were 4.2% of the population.