Morrison, IL USDA Eligibility

USDA Eligibility Guide

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Morrison, IL USDA Loan Eligibility Guide

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

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    More About Morrison, Illinois

    Morrison is a city in Whiteside County, Illinois, United States. The population was 4,188 at the 2010 census, down from 4,447 in 2000. It is the county seat of Whiteside County. It is located on the Historic Lincoln Highway, the nation’s first transcontinental highway and in Morrison was the site of two concrete “seedling miles”, which served as prototypes of what an improved highway could do for the nation.

    In 1854, Lyman Johnson and H. S. Vroom were already in what would become the City of Morrison as contractors and builders for the Air-line railroad, now the Union Pacific Railroad. Johnson and Vroom, along with several other entrepreneurs, acquired the land that would surround the rail station that was planned here. They managed the work of surveyor W.S. Wilkinson in the layout of the future town in 1855. Among these entrepreneurs were W.H. Van Epps. Lyman Johnson decided to call the town Morrison, in honor of Charles Morrison, a friend of Van Epps and a wealthy merchant from New York, who promised financial support in the way of loans for the town’s development. Shortly thereafter, Morrison suffered severe financial losses and he was unable to participate, yet his name remained.

    Refrigerator manufacturer, Illinois Refrigerator Company, was organized in 1892 by Edward A. Smith, J.B. Markey, George Brown, F.L. Sands, and F.R. Beals. Later it added school furniture to its line: Columbia School Equipment Company, which was a subsidiary of the Illinois Refrigerator Company. In 1914, Illinois Refrigerator Company acquired equipment to manufacture stoves, establishing the Summit Stove Company. Two additional school furniture companies formed the Illinois Seating Company and built a new factory in Morrison. The Morris and Rich Toy Factory of Sterling, IL moved to Morrison in 1928, locating in part of the Illinois Refrigerator Company building. In November 1929, a fire damaged two warehouses owned by Illinois Refrigerator Company, Rich Manufacturing Company, and Columbia School Equipment Company. The fire destroyed over 4,000 refrigerators and $35,000 worth of toys, including five or more carloads, which were on the nearby railroad tracks. The total loss was estimated at $500,000. By April 1932, the refrigerator company was bankrupt. Soon after, a new corporation was formed: Rich Illinois Manufacturing Company. The company made wood and metal refrigerators, electric refrigerators, toys, furniture, wood ware, and wood and metal fabricated buildings. In 1934, The City Ice and Fuel Company of Cleveland, OH, which operated under the name Ice Cooling Appliance Corporation (ICA), purchased the plant. The toy factory, Rich Illinois Manufacturing, moved to Clinton, Iowa. In 1954, ICA was sold to American Air Filter Company, Inc. at Louisville, Kentucky, which had consolidated with Herman Nelson Corporation of Moline, Illinois. In 1957, the Herman Nelson division established a factory in Morrison to manufacture air blowers, small portable heaters, and air conditioners, which eventually closed in 1966, moving to Brownsville, Tennessee.

    General Electric started its Morrison plant in 1949, as a branch of the Schenectady, New York department. It became the Appliance Control Department in 1952 and was one of the first units to be established in a decentralization program. Early production included relays, switchettes, and sump pump switches, followed by cold and heat controls. In 1952, the manufacture of range timers was transferred to the Morrison factory from Somersworth, New Hampshire. In ensuing year, gas igniters, thermostats, and small d.c. motors were added. In 1965, a branch plant was established at Bridgeport, CT; the department’s headquarters remained at Morrison. The plant closed in 2010.

    Current major employers within the community include Whiteside County government, Morrison Community School District #6, Morrison Community Hospital, Climco Coils, and Resthave Home. Because Morrison is the county seat, professional services such as attorneys, title and survey services, and financial and accounting services are well-represented. The agricultural sector remains a primary source of economic output.