Fulton, IL USDA Eligibility

USDA Eligibility Guide

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Fulton, IL USDA Loan Eligibility Guide

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

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    More About Fulton, Illinois

    Fulton is a city in Whiteside County, Illinois, United States. The population was 3,481 at the 2010 census, down from 3,881 in 2000. Fulton is located across the Mississippi River from Clinton, Iowa.

    A post office called Fulton has been in operation since 1838. The city was named for Robert Fulton, inventor of the steamboat.

    Fulton is located at 41°52′1″N 90°9′32″W / 41.86694°N 90.15889°W / 41.86694; -90.15889 (41.866873, -90.158834), on the east bank of the Mississippi River near Lock and Dam #13. The most northeastern portion of the county is in the Driftless Area of Illinois, where the Apple River meets the Upper Mississippi River.

    According to the 2010 census, Fulton has a total area of 2.334 square miles (6.05 km2), of which 2.27 square miles (5.88 km2) (or 97.26%) is land and 0.064 square miles (0.17 km2) (or 2.74%) is water.

    Fulton is a city most known for its pride in its Dutch heritage. This is shown through the addition of a traditional Dutch windmill, De Immigrant, located near the city’s dike, which borders the Mississippi. Other local attractions include: the Martin House Museum, Heritage Canyon, the Dutch Days festival held annually on the first weekend of May, and its view of the Mississippi River.