Oconomowoc, WI USDA Eligibility

USDA Eligibility Guide

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Oconomowoc, WI USDA Loan Eligibility Guide

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

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    More About Oconomowoc, Wisconsin

    Oconomowoc (/əˈkɒnəməˌwɒk/ ə-KON-ə-mə-wok) is a city in Waukesha County, Wisconsin, United States. The name was derived from Coo-no-mo-wauk, the Potawatomi term for “waterfall.” The population was 18,203 at the 2020 census. The city is partially adjacent to the Town of Oconomowoc and near the village of Oconomowoc Lake, Wisconsin.

    Before 1700, this region was inhabited by Potawatomi peoples descended from Woodland Indians known as “mound builders”. There are also reports that the Sauk Indian chief Black Hawk had a campsite on Oconomowoc Lake.

    The first white person recorded in the area was Amable (sometimes spelled “Aumable”) Vicau, brother-in-law of Solomon Juneau, one of the founders of Milwaukee. Vicau established a trading post in 1827. White settlers soon followed, beginning in 1830.

    In April 1837, New York native Charles Sheldon staked a 160-acre claim on the eastern shore of what is now Fowler Lake, registering it with the Land Bank of Milwaukee on April 21, 1837. A few days later, H.W. Blanchard acquired a claim adjacent to that of Sheldon on the other side of the lake, which he later sold off to Philo Brewer. Brewer constructed what some consider to be the first residence within Oconomowoc’s current legal limits, a site located at what is now 517 N. Lake Road, between La Belle and Fowler lakes. The first recorded birth was that of Eliza Jane Dewey on January 19, 1840, in the lodgings above a chair factory located at 116 N. Walnut. The first recorded death was that of Jerusha Foster, who died somewhere between the ages of 30 and 36 on March 19, 1841. Initially buried at Zion Church point, she was eventually re-interred at Nashotah Mission.

    Oconomowoc was incorporated as a town in 1844, although residents had to go to Summit to get their mail until 1845. Travel and communication links between the new town and nearby cities were quickly established. The Watertown Plank Road was extended to connect Oconomowoc to the nearby towns of Milwaukee, Waukesha, Pewaukee, and Watertown in 1850. Such infrastructure encouraged further settlement, and by 1853 the town grew to a population of 250, with ten stores, three hotels, one gristmill, and one sawmill (both located near the present Lake Road bridge), and a schoolhouse. The first passenger train from Milwaukee arrived in Oconomowoc on December 14, 1854, as part of the Milwaukee and Watertown Railroad Company’s rapidly expanding Milwaukee & Mississippi line.