Eyota, MN USDA Eligibility

USDA Eligibility Guide

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Eyota, MN USDA Loan Eligibility Guide

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

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    3. Income Limits:

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

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    Mortgage Resource Center

    More About Eyota, Minnesota

    Eyota (/iˈjoʊtə/ ee-YOH-tə) is a city in Olmsted County, Minnesota, United States. The population was 1,977 at the 2010 census.

    Eyota was platted in 1864. The name Eyota is derived from the Sioux Indian word iyotak, meaning “greatest” or “most”. A post office has been in operation at Eyota since 1864. The city was incorporated on February 16, 1875.

    Settlers had begun arriving in the area and staking claims in 1854. The earliest, Benjamin Bear, initially came in 1853 to choose a prime site with an ever-flowing spring, then returned the following year with his family. A stream called Bear Creek starts from this spring. (Today Chester Woods Lake is formed around a portion of Bear Creek that was held back behind a dam built to protect nearby Rochester from flooding.)

    In the early years Eyota was an important destination for business travelers and mail, and shipping point for locally raised grain and cattle. It was located only a mile from a wye with rail extensions going north to Plainview and south to Chatfield, making Eyota a stopping point for travelers on their way to other places. (Daily trains to Chatfield and Plainview left from the Eyota depot.) The railroad was an important local employer, The railroad later became the Chicago & North Western Railway.

    Eyota streets were laid out on the farmland of Milo Matteson by investor Samuel E. Everett, a speculator from New York State. A downtown district, built only on the south side of the street, faced the busy railroad yard. A large hotel, frequented by business travelers, called the Everett House, was located along this street (South Front Street).