Birchwood, WI USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Birchwood, WI USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Birchwood, WI 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 Birchwood, WI. 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.

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local Birchwood, WI home buying seminars – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Birchwood, WI 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 Birchwood USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Birchwood, WI USDA home loan professionals. Get pre-approved with our easy and stress free Birchwood, WI USDA home mortgage today.

    Call Now (888)416-4805
    Do you need a Pre-Approval?
    Get a same day Birchwood, Wisconsin USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Birchwood, Wisconsin

    Birchwood is a village in Washburn County, Wisconsin, United States. The population was 402 at the 2020 census. The village is located within the Town of Birchwood.

    Knapp, Stout and Company was a logging company in Northern Wisconsin. Founded in 1846 William Willson brought the company together. The company was originally owned by; William Wilson, Andrew Tainter, John Knapp, and Henry Stout. Knapp, Stout and Co. became the largest lumber company in the world. In 1873 they owned 115,000 acres of pine forests. They put out 55,000,000 ft. of lumber, 20,000,000 shingles, and 20,000,000 lath annually. The company owned six big farms with six, or seven thousand acres of improved land to supply the lumber camps with pork and wheat.

    Knapp, Stout, and Co. had a major impact on Northern Wisconsin. The large lumber company brought the SS and Omaha railroads to northern Wisconsin. They also created many logging camps that turned into small towns. Birchwood is located where it is due to the Birch Lake lumber camp, and the crossing of the Soo and the Omaha railroads.

    Birchwood WI was platted in 1901. Birchwood was originally named Loomis after Wilbur Loomis, one of the first residents, and the first storekeeper. In 1912 the name was officially changed to Birchwood due to a political argument, and the abundance of birch trees in the area.

    The Birchwood dam was first owned by Knapp, Stout and Co. The first dam was built in 1881 from logs. The dam was enlarged by Knapp, Stout, and Co. in 1893 when they found that the first dam was too small. In 1911 the dam was sold to Chippewa Light & Power Co., who built the first concrete dam. The dam was sold again in 1915 to the Wisconsin-Minnesota Light and Power Co. In 1916 the Wisconsin-Minnesota Light and Power Co. Brought electricity service to Birchwood.