Lake Henry, MN USDA Eligibility

USDA Eligibility Guide

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Lake Henry, MN USDA Loan Eligibility Guide

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

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    More About Lake Henry, Minnesota

    Lake Henry is a city in Stearns County, Minnesota, United States. The population was 103 at the 2010 census. It is part of the St. Cloud Metropolitan Statistical Area.

    Minnesota State Highway 4 serves as a main route in the community.

    According to the United States Census Bureau, the city has a total area of 0.20 square miles (0.52 km2), all land.

    As of the census of 2010, there were 103 people, 47 households, and 22 families living in the city. The population density was 515.0 inhabitants per square mile (198.8/km2). There were 52 housing units at an average density of 260.0 per square mile (100.4/km2). The racial makeup of the city was 100.0% White.

    There were 47 households, of which 25.5% had children under the age of 18 living with them, 38.3% were married couples living together, 4.3% had a female householder with no husband present, 4.3% had a male householder with no wife present, and 53.2% were non-families. 40.4% of all households were made up of individuals, and 10.6% had someone living alone who was 65 years of age or older. The average household size was 2.19 and the average family size was 3.05.