Fairbury, IL USDA Eligibility

USDA Eligibility Guide

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Fairbury, IL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Fairbury, Illinois

    Fairbury is a city in Livingston County, Illinois, United States. The population was 3,757 at the 2010 census.

    Fairbury is located on U.S. Route 24 11 miles east of Chenoa and six miles west of Forrest. It was founded in 1857. The town has a large population of members of the Apostolic Christian faith, who first settled in the area in 1864.

    Fairbury was laid out on November 10, 1857 by Caleb L. Patton and Octave Chanute. Like most Illinois towns of the 1850s, the original town of Fairbury was centered on a depot ground. It consisted of twenty-six blocks, each divided into fourteen to sixteen lots. There was no central public square, but one was later included in Marsh’s addition. The plan used was virtually identical to that at Chatsworth, Illinois, including the street names, and the plan was very similar to that at Gridley and El Paso on the same railroad.

    Octave Chanute was a civil engineer employed by the new Peoria and Oquawka Railroad, which is now the Toledo, Peoria and Western Railroad. Caleb L. Patton was an early settler on the land where the town was built. Chanute, a French native, was later famed for publishing Progress in Flying Machines, which helped pioneer aviation (the Wright brothers even mentioned Chanute as a mentor to them). Chanute built the railroad that made Fairbury possible, but did so against the will of Patton, Fairbury’s first citizen.

    Caleb Patton owned the land that the original town was built on and advertised lots for sale, attracting other people to live there. The original town’s area starts at the corner of Maple Street and First Street and stretches to the corner of Oak Street and Seventh Street. When Patton heard that Chanute wanted to build a railroad in the area’s general direction, he saw it as an opportunity to make use of his otherwise deserted land and struck a deal. If Chanute built his railroad through Fairbury, then Patton would give Chanute half of the town’s property.