Germantown Hills, IL USDA Eligibility

USDA Eligibility Guide

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Germantown Hills, IL USDA Loan Eligibility Guide

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

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    More About Germantown Hills, Illinois

    Germantown Hills is a village in Woodford County, Illinois, approximately 8 miles (13 km) northeast of Peoria. Germantown Hills is the only incorporated community in Worth Township. As of the 2010 census, the village had a total population of 3,438. Largely an agricultural community until its incorporation in 1954, Germantown Hills is now a growing bedroom community in the Peoria Metropolitan Area.

    Settlement of the area began as early as November 1831, when Methodist Rev. Zadock Hall began preaching in modern-day Worth Township. Soon after, an iron foundry was opened by settler Philip Klein. By 1837, a Catholic church was organized by German Catholics in the area. In 1850, William Hoshor built a tavern and hotel named the Germantown House, for which the village would be named more than 100 years later. A steam sawmill was built in 1860, and in the 1890s, the Union House was erected as a tavern, grocery store, and saloon.

    The area remained almost completely agricultural until the incorporation of Oak Grove Park in 1954. The village’s founders wished to use the name “Germantown” to reflect Hoshor’s Germantown House and the area’s large German-American representation, but the name was taken by a village in southern Illinois. Upon its incorporation, the population of Oak Grove Park was 182. In 1967, the name Oak Grove Park was dropped in favor of Germantown Hills. The village’s population would rise steadily until the 1980 census, when the annexation of the Whispering Oaks subdivision brought the number to 524. Subsequent development and annexation brought the population to 1195 by 1990. Rampant development, fueled by suburbanization in the Peoria Metropolitan Area, brought the population to its most-recent count of 3,438.

    Germantown Hills is located at 40°46′17″N 89°27′43″W / 40.77139°N 89.46194°W / 40.77139; -89.46194 (40.771569, -89.461894).

    According to the 2010 census, Germantown Hills has a total area of 1.677 square miles (4.34 km2), of which 1.63 square miles (4.22 km2) (or 97.2%) is land and 0.047 square miles (0.12 km2) (or 2.8%) is water.