Norcross, MN USDA Eligibility

USDA Eligibility Guide

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Norcross, MN USDA Loan Eligibility Guide

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

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    More About Norcross, Minnesota

    Norcross is a city in Grant County, Minnesota, United States, along the Mustinka River. The population was 70 at the 2010 census.

    Norcross was platted in 1881. In 1882, Norcross began as a large grain ranch owned by N.F. Griswold and Captain J.N. Cross. They convinced the Great Northern Railway to build the depot at their ranch rather than two miles north at the planned town of Gorton. The train regularly stopped at the ranch to pick up wheat, and the railroad officials agreed to build the depot and grain elevators there. Why the name Norcross instead of Griscross? The two gentlemen and an old army career man, called Norton, donated the land for the town. Norton and Cross teamed up for the city name, Norcross, and Griswold settled for main street, known as “Griswold Ave.” The city’s name is an amalgamation of Henry Allyn Norton and Judson Newell Cross, the founders.

    The town incorporated in 1913 with 140 people. Lund and Sellseth started a bank in 1909, which closed in 1931, a victim of the Depression. The first school, named “New School,” opened in 1903, and later was home to the Norwegian Lutheran Church when a newer school was built. In 1928, a great fire destroyed all the buildings on the south side of town. Refusing to give in to the forces of nature, the citizens opened a creamery, the town hall, and a liquor store, which later was converted to a pool hall during Prohibition. George Houps for Iowa bought the stockyards and started a general store.

    At one time Norcross had three churches. Our Savior’s Lutheran Church celebrated their 75th anniversary in 1976 and their 90th anniversary in 1991, and is now a beautiful private home. Before the church was built, early pioneers walked 17 miles to a church northeast of Norcross in order to be confirmed. St. Mary’s Catholic Church opened in 1905 and closed in 1923. The Faith United Methodist Church began services in the Amundson School in 1919, erected a church in 1952, and closed in 2007.

    American Legion Hillestad-Borgeson Post #410, based in Norcross, established a veterans’ memorial in Norcross Park on Highway 9. The monument erected by the post is dedicated “In memory of all the men and women who have served their country in all wars.” A National Guardsman and 2005 veteran of the war in Iraq, Norcross native Jacob Veldhouse’s name is inscribed there, as is the name of his uncle, Dennis.