East Cape Girardeau, IL USDA Eligibility

USDA Eligibility Guide

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East Cape Girardeau, IL USDA Loan Eligibility Guide

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

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    More About East Cape Girardeau, Illinois

    East Cape Girardeau is a village in Alexander County, Illinois, United States. The population was 289 at the 2020 census. It is part of the Cape Girardeau–Jackson, MO-IL Metropolitan Statistical Area.

    A post office was established at East Cape Girardeau in 1874, and remained in operation until 1913. The village lies east of Cape Girardeau, Missouri, hence the name.

    East Cape Girardeau is located at 37°17′46″N 89°29′43″W / 37.29611°N 89.49528°W / 37.29611; -89.49528 (37.296030, -89.495237).

    According to the 2021 census gazetteer files, East Cape Girardeau has a total area of 2.00 square miles (5.18 km2), of which 1.96 square miles (5.08 km2) (or 98.30%) is land and 0.03 square miles (0.08 km2) (or 1.70%) is water.

    East Cape Girardeau is across the Mississippi River from Cape Girardeau, Missouri. The two are connected by the Bill Emerson Memorial Bridge which opened in December 2003 following the demolition of the Old Mississippi River Bridge constructed in 1928.