USDA Eligibility Guide
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New Glarus, WI USDA Loan Eligibility Guide
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- The home must be located in a USDA-eligible rural or suburban area around New Glarus, 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:
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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 New Glarus, 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:
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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 New Glarus USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our New Glarus, WI USDA home loan professionals. Get pre-approved with our easy and stress free New Glarus, WI USDA home mortgage today.
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More About New Glarus, Wisconsin
New Glarus is a village in Green County, Wisconsin, United States at the intersection of Wisconsin Highways 69 and 39. It has a population of 2,266 according to the 2020 census. The village, and the town that surrounds it, were named after the canton of Glarus in eastern Switzerland. The community was founded in 1845 by immigrants from that canton and was incorporated in 1901.
In the early 1840s, after several years of failed crops and as food became scarce, much of the canton of Glarus in Switzerland found itself deep in poverty. With more workers than available jobs, the government of the canton saw emigration to America as a solution. Authorities established the Glarus Emigration Society in 1844, which offered loans to help residents purchase land in the New World. All other expenses associated with the voyage to America were to be paid by the emigrants themselves. Men were offered 20 acres (81,000 m2) free of rent for ten years, after which they could own the land for a mere ten shillings per acre. Given the desperate economic conditions in Switzerland, 193 volunteers decided to leave their homeland to start anew in America.
In 1845, magistrates in Glarus dispatched two men, Nicolas Duerst and Fridolin Streiff, to find a suitable location for a colony in the New World. They were given $2600 and instructions to purchase land, build cabins, and prepare for the settlers to arrive the following spring.
Duerst and Streiff began their search in Ohio, Indiana, and Illinois before reaching St. Louis, Missouri. In the early days of July 1845, they then traveled north to Galena, Illinois, after which they arrived at the land office in Mineral Point, Wisconsin. The men investigated several tracts of farm and timber land in the southern Wisconsin territory before deciding on two square miles along the Little Sugar River. On July 17, 1845, they purchased 1,200 acres (4.9 km2) for $1.25 per acre. It was a fertile basin bounded with hills and a large stand of trees nearby. Some said later it was not the best property available, but the valley and hilltops reminded them of their native Switzerland.
The land that would become the Village of New Glarus was untamed wilderness, which had been inhabited by Native Americans for centuries. An Indian trail passed just south of present-day New Glarus, through what is now New Glarus Woods State Park. That trail later became the main thoroughfare to and from New Glarus. Even as late as 1845 the remnants of an old wigwam were still found near there.