Argyle, MN USDA Home Loans vs Argyle, MN FHA Home Loans: Which is Right for You?
Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and Argyle, MN FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.
Argyle, MN USDA Home Loans
1. What it is: The Argyle, MN USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.
2. Eligibility:
- Location: Homes must be located in eligible Argyle, MN rural areas as defined by the USDA.
- Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
- Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.
3. Benefits:
- No down payment: USDA loans allow for 100% financing.
- Competitive interest rates: Often lower than conventional loans.
- Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.
4. Limitations:
- Geographic restrictions: The program is limited to certain rural areas.
- Income caps: Not suitable for those with higher incomes.
Argyle, MN FHA Home Loans
1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and Argyle, MN first-time homebuyers purchase homes.
2. Eligibility:
- Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
- Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
- Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.
3. Benefits:
- Low down payment: Requires only 3.5% down with a 580 credit score.
- Flexible credit requirements: Suitable for those with lower credit scores.
- Assumable mortgage: An Argyle, MN FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.
4. Limitations:
- Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
- Loan limits: There are maximum loan amounts, which vary by county.
Which is Right for You?
Your decision between a USDA Home Loan and an Argyle, MN FHA Home Loan will largely depend on your individual circumstances:
- Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
- Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
- Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
- Income: Remember that USDA loans in Argyle have income caps which could rule out higher earners, while FHA loans in Argyle, MN do not.
To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both Argyle USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances. Questions about the Argyle, MN USDA and FHA loan options? Call today (888)416-4805.
We service the following areas for FHA and USDA loans.
Learn more about Argyle
Argyle (/ˈɑːrɡaɪl/ AR-gyle) is a city in Marshall County, Minnesota, United States, along the Middle River. The population was 544 at the 2020 census. Old Mill State Park is nearby.
Before James J. Hill bought the Great Northern Railway in 1879 and accepted the task of completing the line from Crookston to the Canada–US border, a French-Canadian man founded a town named Louisa, after the French king, in the path of the railroad. However, Hill’s company located the new railroad town just south of the Louisa property line and named it Argyle. The early settlement included many French-Canadians. Other settlers included immigrants from England, Norway, Poland, Sweden, Scotland, and Germany. The early townspeople and businessmen were always anxious to make Argyle an attractive community to the region. Today the community still boasts of several businesses, which draw customers from the regional area. Because of threats of flooding, a dike was built on the Middle River which is a branch of the Red River in 1988.
According to the United States Census Bureau, the city has a total area of 1.00 square mile (2.59 km2), all land. The city is located 40 miles from both Grand Forks, North Dakota and Thief River Falls. Argyle is also located 130 miles from Winnipeg, Manitoba and 360 miles from Minneapolis. The relatively flat area around Argyle is good for farming.
As of the census of 2010, there were 639 people, 261 households, and 175 families residing in the city. The population density was 639.0 inhabitants per square mile (246.7/km2). There were 282 housing units at an average density of 282.0 per square mile (108.9/km2). The racial makeup of the city was 96.7% White, 0.3% Native American, 2.2% from other races, and 0.8% from two or more races. Hispanic or Latino of any race were 2.7% of the population.
There were 261 households, of which 31.8% had children under the age of 18 living with them, 57.9% were married couples living together, 6.5% had a female householder with no husband present, 2.7% had a male householder with no wife present, and 33.0% were non-families. 31.0% of all households were made up of individuals, and 15.3% had someone living alone who was 65 years of age or older. The average household size was 2.43 and the average family size was 3.07.