South Wilmington, IL USDA Eligibility

USDA Eligibility Guide

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South Wilmington, IL USDA Loan Eligibility Guide

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

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    More About South Wilmington, Illinois

    South Wilmington is a village in Grundy County, Illinois, United States. The population was 702 at the 2020 census.

    Although the name might indicate proximity to the city of Wilmington, South Wilmington is approximately 11 miles southwest of Wilmington, and is separated from it by several communities, including Gardner, Braceville, Godley, and Braidwood.

    South Wilmington came into existence August 23, 1900.  The first election for village officers was held September 10, 1899, and the first set of officers elected were: Robert McXulty, St., president; Mike Finn, clerk; Walter Ferguson, treasurer; Charles McLean, constable; William Walker, street commissioner; Levi Simms, police magistrate, and William Purdy, Martin Ferrero. Patrick Corrigan, Hugh Young and John Hammer, trustees.

    The family of Mr. Gibson Simpson were the first to locate at South Wilmington, moving into a house taken there from Braidwood that had belonged to Ed Blandey. The second family was that of Patrick Corrigan, who came to take charge of the hotel which was built by the C. W. and C. Coal Company, it being the first to be put in South Wilmington. In 1899 the coal company commenced to build new houses and sell them to their employees, and a great many were moved in from the surrounding towns of Braceville, Braidwood, Coal City, and Clarke City.

    A meeting of the citizens was held in the fall of 1899 and donations were asked for the commencement of a school for the benefit of the few children here. School commenced that same fall, being held in an old store building which had been moved in on Third Avenue. Miss Carrie Peart was employed as the first teacher. The miners would pay a fee of twenty-five cents per week to operate the school and to pay Miss Carrie Peart. The people responded so generously to the request for funds that by the fall of 1900, a 4-room schoolhouse was ready in District 74, and in May 1902, four more rooms were added.