Augusta, IL USDA Eligibility

USDA Eligibility Guide

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Augusta, IL USDA Loan Eligibility Guide

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

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    More About Augusta, Illinois

    Augusta is a village in southeast Hancock County, Illinois, United States. The population was 587 at the 2010 census, down from 657 at the 2000 census. It is located near Weinberg-King State Park.

    Augusta is located in southeastern Hancock County at 40°13′51″N 90°57′3″W / 40.23083°N 90.95083°W / 40.23083; -90.95083 (40.230946, -90.950741). Illinois Route 61 passes through the village, leaving to the west as Main Street and to the north as Center Street; Bowen is 6 miles (10 km) to the west, and Plymouth is 5 miles (8 km) to the north. Augusta’s Main Street continues east from the center of town as Illinois Route 101, leading 3 miles (5 km) to Weinberg-King State Park and 15 miles (24 km) to Littleton.

    According to the 2010 census, Augusta has a total area of 0.72 square miles (1.86 km2), all land.

    Augusta was founded in 1832 by Joel Catlin and W.D. Abernathy, who was the village’s first postmaster. Catlin named Augusta after having a memorable visit to Augusta, Georgia.

    On September 18, 1858, soon-to-be President Abraham Lincoln visited Augusta, where he gave a speech and stayed at the home of Elder James Stark. Previously, Lincoln’s opponent in the historic Lincoln–Douglas debates, Stephen A. Douglas, had spoken in Augusta. In 1864, Congressman James Garfield (the future president) spoke in Augusta on behalf of Lincoln. Other notable visitors include William McKinley and Theodore Roosevelt in the fall of 1900. Only Roosevelt gave a short speech on his trip through Augusta during the campaign.