Bovey, MN USDA Eligibility

USDA Eligibility Guide

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

Bovey, MN USDA Loan Eligibility Guide

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

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.

    Homebuyer Seminars

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

    See our home loans.

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

    3. Income Limits:

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

    Do you need a Pre-Approval?
    Get a same day Bovey, Minnesota USDA pre-approval to shop for your dream home!

    Mortgage Resource Center

    More About Bovey, Minnesota

    Bovey (/ˈboʊvi/ BOH-vee) is a city in Itasca County, Minnesota, United States. It is part of Minnesota’s Iron Range. The population was 804 at the 2010 census.

    According to the United States Census Bureau, the city has a total area of 2.30 square miles (5.96 km2), of which 2.29 square miles (5.93 km2) is land and 0.01 square miles (0.03 km2) is water.

    In recent years the city, along with its neighbors Coleraine and Taconite, has been under a serious threat of flooding from the nearby Canisteo Mine Pit. The pit, which comprises a series of 19 mines that ceased to be worked in 1985, has now become a lake some 4.8 miles long and up to 300 ft deep. In June 2011 the water level was recorded as having reached 1316.1 feet above sea level, higher than low-lying areas of the town. A project to drain some of the lake to prevent it overflowing and swamping the town was due to commence in mid-2011. The most recent pit water level is 1316.60 MSL.

    As of the census of 2010, there were 804 people, 334 households, and 200 families living in the city. The population density was 351.1 inhabitants per square mile (135.6/km2). There were 380 housing units at an average density of 165.9 per square mile (64.1/km2). The racial makeup of the city was 93.8% White, 0.2% African American, 2.4% Native American, 0.4% Asian, and 3.2% from two or more races. Hispanic or Latino of any race were 2.4% of the population.

    There were 334 households, of which 32.0% had children under the age of 18 living with them, 39.8% were married couples living together, 12.0% had a female householder with no husband present, 8.1% had a male householder with no wife present, and 40.1% were non-families. 29.9% of all households were made up of individuals, and 12.9% had someone living alone who was 65 years of age or older. The average household size was 2.39 and the average family size was 2.87.