Blaine, MN USDA Eligibility

USDA Eligibility Guide

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Blaine, MN USDA Loan Eligibility Guide

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

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    More About Blaine, Minnesota

    Blaine is a suburban city in Anoka and Ramsey counties in Minnesota, United States. Once a rural town, Blaine’s population has increased significantly in the last 60 years. For several years, Blaine led the Twin Cities metro region in new home construction. The population was 70,222 at the 2020 census. The city is mainly in Anoka County, and is part of the Minneapolis–Saint Paul metropolitan area.

    Interstate 35W, U.S. Highway 10, and Minnesota State Highway 65 are three of the main routes in the city.

    Phillip Leddy, a native of Ireland, was recorded in the 1857 census as having settled in the township of Anoka until his death in 1872, on land that later became Blaine. In 1862, he moved near a lake that now bears his misspelled name, Laddie Lake. Another early settler was the Englishman George Townsend, who lived for a short time near what today is Lever St. and 103rd Ave.

    In 1865, Blaine’s first permanent resident, Greenberry Chambers, settled on the old Townsend claim. Chambers was a former slave who moved north from Barren County, Kentucky, after the American Civil War. Around 1884, Chambers and his family moved to St. Paul.

    In 1870, George Wall, Joseph Gagner, and others soon settled in the area and it began to grow.[citation needed]