Oakdale, MN USDA Eligibility

USDA Eligibility Guide

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Oakdale, MN USDA Loan Eligibility Guide

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

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    More About Oakdale, Minnesota

    Oakdale is a city in Washington County, Minnesota, United States. It is a suburb of Saint Paul and is on the eastern side of the Twin Cities Metropolitan area. The population was 28,303 at the 2020 census. Oakdale is the 36th largest city in Minnesota by population.

    Oakdale lies entirely within the North St. Paul–Maplewood–Oakdale school district, ISD 622, and the city’s students are split into two high schools within the district. Tartan Senior High School is within the city’s boundaries, and serves the southern half of Oakdale. The city’s northern residents are served by North High School in North St. Paul.

    Imation (now known as Glassbridge) World Headquarters was in Oakdale. Nearby 3M headquarters employs many residents of the city.

    Oakdale was named for a grove of oak trees near the original town site. Oakdale Township was organized in 1858. The city of Oakdale is the result of a consolidation of Oakdale and Northdale Townships in the 1970s, and continued to annex land well into the 1990s.

    Arthur Stephen suggested the name “Oakdale” at the first town meeting on November 1, 1858. Stephen was born on March 30, 1830, in Scotland. He was the son of Robert and Elizabeth (Grant) Stephen. In 1839, when Arthur was nine years old, the Stephen family came to America and settled in Knox County, Illinois. His father was a schoolteacher and young Arthur learned the trade of bricklayer.