Raleigh, IL USDA Eligibility

USDA Eligibility Guide

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Raleigh, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Raleigh, IL 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 Raleigh, IL. 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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    Once this form is completed you will have the option to start your USDA mortgage application.

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    3. Income Limits:

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

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    More About Raleigh, Illinois

    Raleigh is a village in Saline County, Illinois, United States. The population was 330 at the 2000 census.

    The village of Raleigh was the seat of Saline County following the county’s troubled creation in 1847. Raleigh had its own school, several stores, and was a bustling village. Now, along with many Saline County towns, Raleigh has been abandoned by business and commerce, leaving only 350 residents.

    On October 11, 1847, at a meeting of the County Commissioners held in Curran, a location and name for a County Seat for the newly formed Saline County was established. The Musgrave family, having moved from Raleigh, North Carolina, convinced the group to name the new county seat “Raleigh”. William St. C. Clark, Israel W. Crawford, and Martin Kittinger helped Archibald Sloan survey the town. George Bond, William Carr, and William Stricklin were to build a county road reaching from Raleigh to the boundary line of Saline and Williamson Counties. Raleigh Township was six square miles. When the surveying was completed, there were only three families living in Raleigh. The family of Andrew Musgrave owned 200 acres of farm ground. Mrs. (William) Crawford and Archibald Sloan were the other two occupants.

    Lots in the town were sold to raise money to pay for the construction of a new county courthouse. Some of the earliest Raleigh residents were: Alfred Aldrich from Posey County, Indiana (built a log house and opened a store), John F. Ammon (station agent), John Choisser from Kaskaskia, James M. Gaston, Henry Goodrich (blacksmith), Mr. McElvain, Tom Mitchell, Osborn Powell (blacksmith).

    The first courthouse was a 20′ x 24′ building constructed by James M. Gaston from logs. It was two stories tall. The courtroom occupied the entire first floor. The second story held two rooms and a hallway, used during court proceedings for grant or petit purposes. The courthouse was finished August 15, 1858 at a cost of $5,500.00. About 8 months after completion of the new building, a group began scheming to have the courthouse, and hence the County Seat, moved out of Raleigh.