Mill Shoals, IL USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Mill Shoals, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Mill Shoals, 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 Mill Shoals, 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.

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local home buying seminar – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Mill Shoals, 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 Mill Shoals, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Mill Shoals, IL USDA home loan professionals. Get pre-approved with our easy and stress free Mill Shoals, IL USDA home mortgage today.

    Call Now phone
    Do you need a Pre-Approval?
    Get a same day Mill Shoals, Illinois USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Mill Shoals, Illinois

    Mill Shoals is a village in Wayne and White counties in the U.S. State of Illinois. The population was 235 at the 2000 census, down to 176 at the 2020 census. In Fall 2022, Drew Lane Consultants LLC conducted a village-wide survey that totaled population at 157. The Village of Mill Shoals is located 4 hours and 14 minutes driving directly south of the City of Chicago (with no traffic), 58 minutes driving directly northwest of Evansville, Indiana, 2 hours and 9 minutes driving directly west of Louisville, Kentucky, and 1 hour and 42 minutes directly east of St. Louis, Missouri. The Village is home to a U.S. Post Office, community center, private grain elevator, and two churches. Residents are active members of the 4-H, FFA, and Ruritans.

    Mill Shoals, Illinois experiences a humid continental climate, characterized by hot summers and cold winters. The average temperature in the summer months of June to August ranges from 70 °F to 85 °F, while in the winter months of December to February, it drops to around 20 °F to 35 °F. The town also receives a moderate amount of precipitation throughout the year, with the wettest months being May and June. Additionally, Mill Shoals is located in an area that is prone to severe thunderstorms and tornadoes during the spring and summer months. It is important for residents and visitors to stay informed about weather conditions and take necessary precautions to stay safe during severe weather events.

    Agriculture plays a significant role in the economy of Mill Shoals, Illinois, and the surrounding area. The town is located in a region that is known for its fertile soil, making it an ideal location for farming. The primary crops grown in the area include corn, soybeans, and wheat. In addition to crop production, the area is also home to several livestock farms, including beef and dairy cattle, pigs, and poultry. These farms not only provide food for the local community but also contribute to the economy through job creation and the sale of agricultural products. Overall, agriculture is a vital part of Mill Shoals’ economy and way of life.

    Mill Shoals is located at 38°14′52″N 88°20′48″W / 38.24778°N 88.34667°W / 38.24778; -88.34667 (38.247904, -88.346608).

    According to the 2010 census, Mill Shoals has a total area of 0.79 square miles (2.05 km2), all land.