Rushmore, MN USDA Eligibility

USDA Eligibility Guide

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Rushmore, MN USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Rushmore, Minnesota

    Rushmore is a town in Nobles County, Minnesota, United States. The population was 342 at the 2010 census.

    According to the United States Census Bureau, the city has a total area of 0.25 square miles (0.65 km2), all land. Rushmore is located in section 19 of Dewald Township. It is situated on the Buffalo Ridge, a drainage divide between the Mississippi and Missouri River systems.

    Main highways include:

    The founding of Rushmore: The city was named for S.M. Rushmore, an early pioneer. The town owes its existence to the construction of the Worthington and Sioux Falls Railway, and the desire of a New York capitalist to establish a land colonization scheme in southwestern Minnesota. When the Worthington and Sioux Falls Railway was initially surveyed, it was decided to construct a station house in section 19 of Dewald Township. The station house was Named Miller Station, in honor of ex-governor Stephen Miller, and for two years it had no inhabitants. In 1878, George I. Seney, a New York capitalist, secured control of large plots of railroad land in Dewald and Olney Townships. He immediately began the process of colonizing the lands, bringing out settlers from New York City and other eastern points. On May 27, 1878, a Mr. S. M. Rushmore arrived in Worthington along with his family, and immediately took a train for Miller Station. There he established a store to serve Mr. Seney’s flood of colonists. A railroad depot was also constructed, and the town was surveyed and platted. In August 1878, the town was renamed Rushmore in honor of the pioneer shopkeeper, and the community grew rapidly. Indeed, a business directory from the fall of 1879 shows that Rushmore had a general store, a feed mill, an elevator, a hotel, a hardware store, a grocer, a lumber agent, a tinware dealer, a notion store, a jeweler, and two blacksmiths. The town also had a new church and a new school. On March 27, 1900, Rushmore, with a population of 204, was incorporated. Village government promptly began under President S. B. Bedford.

    As of the census of 2010, there were 342 people, 154 households, and 87 families residing in the city. The population density was 1,368.0 inhabitants per square mile (528.2/km2). There were 173 housing units at an average density of 692.0 per square mile (267.2/km2). The racial makeup of the city was 90.6% White, 0.9% African American, 3.8% Asian, 2.3% from other races, and 2.3% from two or more races. Hispanic or Latino of any race were 9.6% of the population.