Riverton, IL USDA Eligibility

USDA Eligibility Guide

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Riverton, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Riverton, 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 Riverton, 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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    3. Income Limits:

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

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    More About Riverton, Illinois

    Riverton is a village in Sangamon County, Illinois, United States. The population was 3,455 at the 2010 census, up from 3,062 in 2000. It is part of the Springfield, Illinois Metropolitan Statistical Area.

    Riverton was founded by John Taylor in 1837. Originally named Judy’s Ferry for the ferry crossing the Sangamon River there, then Jamestown, after politician James Shields, the village was successful for about a decade, producing lumber for a planned railroad. When it was discovered that the railroad was badly constructed and unreliable, Jamestown fell into economic distress and the land on which it sat was sold.
    The town was sold to Joseph Loose of Maryland, then again to John D. Keedy, a Springfield distiller. Land south of Jamestown was purchased and a distillery was put up. Yet again, the properties were lost, first mortgaged to Jacob Bunn, then given as a claim settlement to Parley L. Howlett, another distiller.
    Jamestown was soon renamed Howlett, Shields had fallen from popularity, and a new flour mill and coal mine caused a short-lived boom. Despite their success, most of Howlett was sold to Jacob Bunn to pay off debt. Bunn started selling the lots to the residents, the only owner to do so. After a state requirement was passed preventing communities from being named after people, Howlett was rechristened as Riverton in the 1870s.
    In 1876, train robber Jesse James spent a night in Riverton while en route to a bank heist in Minnesota. Al Capone also reportedly used Riverton as one of his hideouts. Riverton historically had a higher immigrant population than other small towns in the Springfield area due to the coal mining industry. There is still a lot of Italian-American influence in the town.

    Riverton is located at 39°50′54″N 89°32′25″W / 39.84833°N 89.54028°W / 39.84833; -89.54028 (39.848305, -89.540166).

    According to the 2010 census, Riverton has a total area of 2.216 square miles (5.74 km2), of which 2.18 square miles (5.65 km2) (or 98.38%) is land and 0.036 square miles (0.09 km2) (or 1.62%) is water.

    As of the census of 2000, there were 3,048 people, 1,236 households, and 845 families residing in the village. The population density was 1,497.4 inhabitants per square mile (578.1/km2). There were 1,311 housing units at an average density of 644.1 per square mile (248.7/km2). The racial makeup of the village was 98.92% White, 0.10% African American, 0.16% Native American, 0.10% Asian, and 0.72% from two or more races. Hispanic or Latino of any race were 0.92% of the population.