Peterson, MN USDA Eligibility

USDA Eligibility Guide

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Peterson, MN USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Peterson, Minnesota

    Peterson is a city in Fillmore County, Minnesota, United States. The population was 199 at the 2010 census.

    In the year 1853, Peter Peterson Haslerud purchased and platted the village site of Peterson and was the major force behind its early growth and development. The community was named after him. After buying the land and platting the town, he was elected to the Minnesota State Legislature, served in several appointed positions and in 1856 was appointed by the Governor of Minnesota as Immigration officer for the 14th District of Minnesota. Peter was instrumental in bringing the railroad through Rushford Township in 1867 and he gave the railroad company fifteen acres of land and along with other citizens contributed $800. to secure a station and warehouse at Peterson. Peter began buying wheat from local farmers and shipping it back to the eastern part of the U.S.

    In 1870, a post office was established in Peterson and Even A. Hjelie was appointed first postmaster. In 1871, Peter Peterson Haslerud developed a “trout farm” on his property outside Peterson and continued to expand the boundaries of the town.

    In 1873, Ole Ensberg started a blacksmith shop and in 1874 an additional quarter section of land was laid out into lots and added to the village of Peterson. In 1875, two general stores, a hardware store, and a drug store were established. In 1875, the telegraph was installed at the railroad station and G.P. Haslerud (Peter Peterson Haslerud’s oldest son) was appointed agent. Also in that year fifteen additional acres were platted and Prospect Park, Mill, Centennial, Fillmore, Church, and Myrtle Streets were named. In 1876, a mill was built with farmers living in the surrounding areas subscribing most of the stock. A livery barn, a steam mill, the Peterson Hotel, the Northwestern Bar and other small businesses opened for business.

    In 1882, the Minnesota and Dakota Gazetteer, gave a contemporary description of Peterson: