USDA Eligibility Guide
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Nauvoo, 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 Nauvoo, 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 Nauvoo, 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 Nauvoo, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Nauvoo, IL USDA home loan professionals. Get pre-approved with our easy and stress free Nauvoo, IL USDA home mortgage today.
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More About Nauvoo, Illinois
Nauvoo (/ˈnɔːvuː/ NAW-voo; from the Hebrew: .mw-parser-output .script-hebrew,.mw-parser-output .script-Hebr{font-family:”SBL Hebrew”,”SBL BibLit”,”Taamey Ashkenaz”,”Taamey Frank CLM”,”Frank Ruehl CLM”,”Ezra SIL”,”Ezra SIL SR”,”Keter Aram Tsova”,”Taamey David CLM”,”Keter YG”,”Shofar”,”David CLM”,”Hadasim CLM”,”Simple CLM”,”Nachlieli”,Cardo,Alef,”Noto Serif Hebrew”,”Noto Sans Hebrew”,”David Libre”,David,”Times New Roman”,Gisha,Arial,FreeSerif,FreeSans}נָאווּ, Modern: Navu, Tiberian: Nâwû, ‘they are beautiful’) is a small city in Hancock County, Illinois, United States, on the Mississippi River near Fort Madison, Iowa. The population of Nauvoo was 950 at the 2020 census. Nauvoo attracts visitors for its historic importance and its religious significance to members of several groups: The Church of Jesus Christ of Latter-day Saints; the Community of Christ, formerly the Reorganized Church of Jesus Christ of Latter Day Saints (RLDS); other groups stemming from the Latter Day Saint movement; and the Icarians. The city and its immediate surrounding area are listed on the National Register of Historic Places as the Nauvoo Historic District.
The area of Nauvoo was first called Quashquema, named in honor of the Native American chief who headed a Sauk and Fox settlement numbering nearly 500 lodges. By 1827, white settlers had built cabins in the area. By 1829 this area of Hancock County had grown sufficiently so that a post office was needed and in 1832 the town, by then called Venus, was one of the contenders for the new county’s seat. However, the honor was awarded to a nearby city, Carthage. In 1834 the name Venus was changed to Commerce because the settlers felt the new name better suited their plans.
In late 1839, arriving Latter Day Saints bought the small town and in April 1840 it was renamed Nauvoo by Joseph Smith, who led the Latter Day Saints to Nauvoo to escape conflict with the state government in Missouri. The name Nauvoo is derived from the traditional Hebrew language with an anglicized spelling. The word comes from Isaiah 52:7, “How beautiful upon the mountains…” By 1844 “Nauvoo’s population had swollen to 12,000, rivaling the size of Chicago” at the time.
After Joseph Smith’s death in 1844, continued violence from surrounding non-LDS members forced most Latter-Day Saints to leave Nauvoo. Most of these followers, led by Brigham Young, emigrated to the Great Salt Lake Valley. In 1849, Icarians moved to the Nauvoo area to implement a utopian socialist commune based on the ideals of French philosopher Étienne Cabet. The colony had nearly 500 members at its peak, but Cabet’s death in 1856 led some members to leave this parent colony.
After the departure of the Icarians, Nauvoo became the largest German-speaking community in Illinois and remained so for fifty years. German was spoken widely in town and in the Catholic, Lutheran, Presbyterian and Methodist churches. During this period, wine-making and fruit production thrived in Nauvoo. Notable residents from this era included the Swiss memoirist Heinrich Lienhard. During World War I, most of Nauvoo’s native-German speaking residents stopped using German in public, and the use of German had entirely faded away by World War II.