Beaver Creek, MN USDA Eligibility

USDA Eligibility Guide

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Beaver Creek, MN USDA Loan Eligibility Guide

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

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    More About Beaver Creek, Minnesota

    Beaver Creek is a city in Rock County, Minnesota, United States. The town was platted in 1877 and named for the large number of beavers which were caught along the nearby creek throughout the late 1800s.

    A post office called Beaver Creek has been in operation since 1873. Beaver Creek was platted in 1877. The city took its name from nearby Beaver Creek. Beaver Creek was incorporated in 1884.

    According to the United States Census Bureau, the city has a total area of 0.50 square miles (1.29 km2), all land. Interstate 90 serves as a main route in the community, and Minnesota State Highway 23 is nearby, three miles to the west.

    As of the census of 2010, there were 297 people, 117 households, and 86 families residing in the city. The population density was 594.0 inhabitants per square mile (229.3/km2). There were 122 housing units at an average density of 244.0 per square mile (94.2/km2). The racial makeup of the city was 97.0% White, 1.0% African American, 0.3% Native American, and 1.7% from other races. Hispanic or Latino of any race were 1.3% of the population.

    There were 117 households, of which 31.6% had children under the age of 18 living with them, 65.8% were married couples living together, 4.3% had a female householder with no husband present, 3.4% had a male householder with no wife present, and 26.5% were non-families. 20.5% of all households were made up of individuals, and 8.6% had someone living alone who was 65 years of age or older. The average household size was 2.54 and the average family size was 2.92.