USDA Eligibility Guide
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Moline, IL USDA Loan Eligibility Guide
1. Property Eligibility:
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- The home must be located in a USDA-eligible rural or suburban area around Moline, 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:
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- 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 Moline, 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:
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- 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 Moline, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Moline, IL USDA home loan professionals. Get pre-approved with our easy and stress free Moline, IL USDA home mortgage today.
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More About Moline, Illinois
Moline (/moʊˈliːn/ moh-LEEN) is a city located in Rock Island County, Illinois, United States. With a population of 42,985 in 2020, it is the largest city in Rock Island County. Moline is one of the Quad Cities, along with neighboring East Moline and Rock Island in Illinois and the cities of Davenport and Bettendorf in Iowa. The Quad Cities have an estimated population of 381,342. The city is the ninth-most populated city in Illinois outside the Chicago Metropolitan Area. The corporate headquarters of Deere & Company is located in Moline, as was Montgomery Elevator, which was founded and headquartered in Moline until 1997, when it was acquired by Kone Elevator, which has its U.S. Division headquartered in Moline. Quad City International Airport, Black Hawk College, and the Quad Cities campus of Western Illinois University-Quad Cities are located in Moline. Moline is a retail hub for the Illinois Quad Cities, as South Park Mall and numerous big-box shopping plazas are located in the city.
In the mid-1990s, the city undertook major efforts to revitalize its central business district, which had declined after suburban growth and retail changes after the 1950s and 1960s. Today, Moline’s downtown again serves as one of the civic and recreational hubs of the Quad Cities; many events take place at the 12,000-seat Vibrant Arena at The MARK (formerly known as The MARK of the Quad Cities, iWireless Center, and TaxSlayer Center) and at John Deere Commons. Downtown Moline features hotels such as Wyndham, The Element Moline, The Axis Hotel, and Stoney Creek Inn, along with commercial areas such as Bass Street Landing and the historic 5th Avenue.
Moline acquired its name after it was platted (surveyed and planned) in 1843. The name derives from the French moulin meaning “mill town”.
Indigenous peoples of varying cultures inhabited areas along the river over thousands of years, using it for transportation, water and fishing. According to the Rock Island County Historical Society, the first more permanently settled inhabitants of the Moline area are thought to be the Sauk and Meskwaki Indians, who founded the village of Saukenuk in 1720 along the Rock River not far from its confluence with the Mississippi. This tribe saw the land between the Rock and Mississippi rivers as ideal for farming and fishing. By the early 19th century, this once peaceful area became a site of violent confrontations between European-American settlers, arriving in greater numbers and encroaching on Native American land, and the Sauk and Fox tribes. In 1832 Chief Black Hawk declared war on the United States, initiating the Black Hawk War. When the war ended later that year, Black Hawk and his people were forced to leave the area and go north, paving the way for more European-American settlers to enter the Mississippi Valley.[citation needed]
In 1837, David B. Sears and a group of associates built a 600-foot (180 m) stone-and-brush dam across Sylvan Slough, thereby connecting the southern bank of the Mississippi River to what is today called Arsenal Island. The dam not only served as an access road between the island’s settlements and the mainland, but it provided water power for a mill which Sears built to saw wood, grind corn, and card wool. The water power generated by the dam attracted many industrialists. Over the next seven years, a number of factories sprouted up along the shoreline. A factory town was platted in 1843 on the Illinois shore under the working name of “Rock Island Mills”. The name did not stick. When Charles Atkinson, one of the major landowners in the area, was offered the choice of naming the town Moline (“City of Mills”, from the French moulin, as suggested by a local surveyor P.H. Olgilvie) or Hesperia (meaning “Star of the West”), he chose Moline. The town of Moline was incorporated on April 21, 1848 under Illinois state law and granted a charter for a trustee form of government.[citation needed]