Chain O Lakes, WI USDA Eligibility

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 Chain O Lakes, 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 Chain O Lakes USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Chain O Lakes, WI USDA home loan professionals. Get pre-approved with our easy and stress free Chain O Lakes, WI USDA home mortgage today.