Lino Lakes, MN USDA Eligibility

USDA Eligibility Guide

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Lino Lakes, MN USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Lino Lakes, Minnesota

    Lino Lakes (/ˈlaɪnoʊ ˈleɪks/ LY-noh LAYKS) is a city in Anoka County, Minnesota, United States. The population was 21,399 at the 2020 census. Interstates 35W and 35E are two of Lino Lakes’s main routes. It is an outer suburb north of the Twin Cities.

    When European settlers arrived, Native Americans already lived in the area where what are now called Reshanau, Baldwin, Rice and Marshan Lakes cluster. The Dakota people found this to be a land of plenty, with abundant wild rice and small game. Several Native American burial grounds are in the area. White hunters and trappers began coming to the area from both Canada and the eastern states around 1850. Those who settled on the lake’s west side had names like Ramsden, Speiser, and Wenzel. The east side was settled by families including the Cardinals, LaMottes, Houles and Dupres. Many of their descendants still live in the area.

    Several names were suggested for the new village, most containing the word “lakes”. The origin of the word “Lino” is unknown. A Lino post office operated for about 10 years in the late 1800s. The town board decided to name the new village Lino Lakes. On May 11, 1955, the Village of Lino Lakes was incorporated. It covered the original Centerville Township except the Village of Centerville, and comprised 21,000 acres of land and 1,800 citizens. In 1972, the state legislature changed all Minnesota villages to cities.

    The area’s first unit of local government was the township of Centerville, organized on August 11, 1857, and encompassing 36 square miles. The population of just under 300 was organized into three loosely knit communities known as the “German settlement” west of the lakes, the “Swede settlement” south of the lakes, and the “French settlement” east of the lakes. In the 1950s neighboring villages started annexing land from Centerville Township. To protect the boundaries and allow for the financing of public improvements, the township residents voted to incorporate into a village.

    On July 26, 2010, the Lino Lakes City Council voted 4–1 to establish English as Lino Lakes’s official language. The resolution stated that all official documents would be prepared in English and that the city would not pay for translation of its documents into any other language. Proponents argued that expenses related to translation of governmental expenses were unnecessary. On the other hand, the resolution has been perceived as connected to the English-only movement. MetroNorth Chamber of Commerce president Lori Higgins said, “it makes the area appear unwelcoming.”