Oak Creek, WI USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Oak Creek, WI USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Oak Creek, 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 Oak Creek, 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.

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local Oak Creek, WI home buying seminars – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Oak Creek, 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 Oak Creek USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Oak Creek, WI USDA home loan professionals. Get pre-approved with our easy and stress free Oak Creek, WI USDA home mortgage today.

    Call Now (888)416-4805
    Do you need a Pre-Approval?
    Get a same day Oak Creek, Wisconsin USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Oak Creek, Wisconsin

    Oak Creek is a city in the U.S. state of Wisconsin. Located in Milwaukee County, it sits on the southwestern shore of Lake Michigan and is located immediately south of Milwaukee. The city is one of the fastest growing in Milwaukee County and all of Wisconsin. As of the 2020 census, the population was 36,497.

    The area has experienced an economic boom in recent years, with the addition of large companies such as Amazon, IKEA, and the Astronautics Corporation of America.

    On January 2, 1838, the territorial legislature divided Milwaukee County into two towns: the Town of Milwaukee, encompassing everything north of the present Greenfield Avenue, and the Town of Lake encompassing everything south of the present Greenfield Avenue; “and the polls of election shall be opened at the house of Elisha Higgins, in said town.” On March 8, 1839, a new Town of Kinnikennick was created, encompassing the western part of Lake (later the Towns of Greenfield and Franklin); finally, on August 13, 1840, the south portion of the Town of Lake was split off to form the town of Oak Creek. As of the 1840 census, the population of the Town of Lake (then including Oak Creek) was 418.

    In 1955, the Town of Oak Creek, then still semi-rural with a population of 4807 in the 1950 census, was incorporated as a city under the terms of Wisconsin statute 66.0215, also known as “The Oak Creek Law.” The Oak Creek Law was crafted by Town Attorney Tony Basile to prevent Oak Creek’s annexation by the City of Milwaukee, which by annexations (including the 1954 annexation of the remainder of the Town of Lake) was now bordering Oak Creek and had already annexed one small portion of the town; the law was shepherded through the legislature with the help of state Democratic party legislative joint committee chairman Leland McParland, who was the state senator for Oak Creek.

    In recent years, the 85 acre site called the Drexel Town Square, built on part of the site where the gigantic AC Spark Plug factory once stood, has become the city’s newest economic venture. It is home to a number of retail shops, restaurants, a hotel, residential buildings, and a medical facility. The Civic Center includes city hall and the public library. The town square also features a farmers market, splash pad, ice rink, and an outdoor amphitheater. The town square development won the 2016 Vision Award from the Milwaukee Business Journal.