Neenah, WI USDA Eligibility

USDA Eligibility Guide

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Neenah, WI USDA Loan Eligibility Guide

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

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    More About Neenah, Wisconsin

    Neenah (/ˈniːnə/ NEE-nə) is a city in Winnebago County, Wisconsin, in the north central United States. It is situated on the banks of Lake Winnebago, Little Lake Butte des Morts, and the Fox River, approximately forty miles (64 km) southwest of Green Bay. Neenah’s population was 27,319 at the 2020 census.

    Neenah is within the geographic boundaries of the Town of Neenah, but is politically independent. The city is the southwesternmost of the Fox Cities of northeast Wisconsin. It is the smaller of the two principal cities of the Oshkosh-Neenah Metropolitan Statistical Area, which is included in the Appleton-Oshkosh-Neenah Combined Statistical Area. It is sometimes referred to as a twin city with Menasha, with which it shares Doty Island.

    Neenah was named by Governor James Duane Doty from the Hoocąk word for “water” or “running water”. It was the site of a Ho-Chunk village in the late 18th century. It is Nįįňą in the Hoocąk language.

    The government initially designated this area in 1835 as an industrial and agricultural mission to the Menominee Indians of the area. Early settlement by European Americans began a few years later, stimulated in large part by the proximity of the area to the Fox River.

    Kimberly-Clark corporation was formed here in 1872. It founded a major paper mill here in 1873, as the region had become a center of lumbering. Profits from lumber stimulated the development of businesses and a variety of professions. Some people relocated to Neenah after the disastrous fire in Oshkosh in 1875.