De Land, IL USDA Eligibility

USDA Eligibility Guide

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De Land, IL USDA Loan Eligibility Guide

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

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    More About De Land, Illinois

    De Land is a village in Piatt County, Illinois, United States. The population was 446 at the 2010 census. The name of the village is spelled De Land by the census bureau.

    DeLand was founded in 1873 by Thomas E. Bondurant. who had it laid out as an answer to the needs of the local farmers for a place from which to ship their grain. Before officially being named DeLand, the town was known as “Tom’s Town” in honor of Thomas Bondurant. The origination of the name DeLand has disputed sources, most tracing back to either James DeLand, who helped bring the railroad to the area in 1872, or French DeLand, a surveyor who is said to have laid out the town. The village was incorporated in 1899.

    In 1912 a Carnegie Library was opened in DeLand with $8,000 provided by the Carnegie Corporation of New York, after a group of citizens including Tom McMillen, a local bank employee, and Lucy Thornton, the president of the Women’s Club, raised public support for the project. The original library building was closed in 2009 and all books and materials were moved to a building nearby.

    In 2002, the De Land board of trustees acknowledged that it had passed a sundown town ordinance decades earlier.

    According to the 2010 census, De Land has a total area of 0.41 square miles (1.06 km2), all land.