Eagle Bend, MN USDA Home Loans vs Eagle Bend, MN FHA Home Loans: Which is Right for You?
Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and Eagle Bend, MN FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.
Eagle Bend, MN USDA Home Loans
1. What it is: The Eagle Bend, MN USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.
2. Eligibility:
- Location: Homes must be located in eligible Eagle Bend, MN rural areas as defined by the USDA.
- Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
- Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.
3. Benefits:
- No down payment: USDA loans allow for 100% financing.
- Competitive interest rates: Often lower than conventional loans.
- Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.
4. Limitations:
- Geographic restrictions: The program is limited to certain rural areas.
- Income caps: Not suitable for those with higher incomes.
Eagle Bend, MN FHA Home Loans
1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and Eagle Bend, MN first-time homebuyers purchase homes.
2. Eligibility:
- Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
- Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
- Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.
3. Benefits:
- Low down payment: Requires only 3.5% down with a 580 credit score.
- Flexible credit requirements: Suitable for those with lower credit scores.
- Assumable mortgage: An Eagle Bend, MN FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.
4. Limitations:
- Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
- Loan limits: There are maximum loan amounts, which vary by county.
Which is Right for You?
Your decision between a USDA Home Loan and an Eagle Bend, MN FHA Home Loan will largely depend on your individual circumstances:
- Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
- Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
- Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
- Income: Remember that USDA loans in Eagle Bend have income caps which could rule out higher earners, while FHA loans in Eagle Bend, MN do not.
To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both Eagle Bend USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances. Questions about the Eagle Bend, MN USDA and FHA loan options? Call today (888)416-4805.
We service the following areas for FHA and USDA loans.
Learn more about Eagle Bend
Eagle Bend is a city in Todd County, Minnesota, United States. The population was 535 at the 2010 census. By the 2020 Census the population had increased slightly to 546.
Eagle Bend was first settled in the early 1880s. The first pioneers were Charles O’Dell, a merchant, and Marion Crider, a homesteader from eastern Kentucky. When O’Dell opened his general store, his first customer was Crider, who bought a pound of coffee. The townsite was purchased by a railroad executive, Benjamin F. Abbott, who wished to change the name of the town to Abbottsville; however, sensibility prevailed and the evocative name of Eagle Bend was retained. The post office was established in O’Dell’s store in 1882, and the village was incorporated on January 21, 1890.
In June 1933, Clarence Olson, alias Tuffy, a Prohibition era bootlegger and gangster based in Eagle Bend who, according to the The Long Prairie Leader, “has long had a reputation as a liquor runner and hijacker and who has been claimed by many to be the toughest man between Minneapolis and Duluth”, met his destiny in a Holdingford area gunfight. After arriving with two associates at the farmhouse of Holdingford bootleggers Joseph and Anthony Dzierweczynski to buy 85 gallons of Minnesota 13 moonshine, Tuffy Olson first announced that the Dzierweczynskis would now be paid in cash. Then, however, Tuffy Olson and his enforcer Harley Buchan drew their sidearms and announced that they intended to take to 85 gallons of moonshine for free. Joseph Dzierweczynski, however, managed to flee the room and returned with a loaded shotgun. As he and Buchan fled back to their escape vehicle, Tuffy Olson received two fatal shotgun blasts in the back. Following an investigation by the Stearns and Toddy County Sheriff’s Departments, Tuffy’s two surviving enforcers and the Dzierweczynski brothers were both arrested pending criminal charges.
According to the Long Prairie Leader, “Tuffy Olson has for years had a reputation of being a booze runner who has had many conflicts with the law. At the time of his death, a Federal charge of illegal possession of liquor was hanging over his head, the trial being scheduled for later in the year. It is alleged that he peddled liquor at dance halls over a wide area and other rumors credit him with having hijacked many liquor runners in this section of the State.”
According to the United States Census Bureau, the city has a total area of 1.35 square miles (3.50 km2), all land. The village is located at a bend of Eagle Creek. Eagle Creek drains Harris Creek, and in turn flows into Long Prairie River.