St. Augusta, MN USDA Eligibility

USDA Eligibility Guide

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St. Augusta, MN USDA Loan Eligibility Guide

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

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    More About St. Augusta, Minnesota

    Saint Augusta or St. Augusta, formerly named Ventura, is a city in Stearns County, Minnesota, United States, directly south of the city of St. Cloud. The population was 3,497 at the 2020 census.

    St. Augusta is part of the Saint Cloud Metropolitan Statistical Area.

    Writing in 1997, Jewish-American historian of America’s religious architecture Marilyn J. Chiat described the early history of the region as follows, “Father Francis X. Pierz, a missionary to Indians in central Minnesota, published a series of articles in 1851 in German Catholic newspapers advocating Catholic settlement in central Minnesota. Large numbers of immigrants, mainly German, but also Slovenian and Polish, responded. Over 20 parishes where formed in what is now Stearns County, each centered on a church-oriented hamlet. As the farmers prospered, the small frame churches were replaced by more substantial buildings of brick or stone such as St. Mary, Help of Christians, a Gothic Revival stone structure built in 1873. Stearns County retains in its German character and is still home to one of the largest rural Catholic populations in Anglo-America.”

    St. Augusta received its name because Fr. Pierz accidentally found a German language holy card dedicated to St. Augustine lying in a nearby field. At his suggestion, the town was named for the Saint, although the city’s name was somehow garbled in the process. The original holy card, however, is still preserved in the parish archives.

    Similarly to many other Stearns County German communities, the early settlers of St. Augusta included at least one Catholic family of German Jewish descent. The family patriarch was Baldassar Mayer (1816-1890), a native of the Grand Duchy of Baden. Raised in Orthodox Judaism Mayer had converted to Roman Catholicism before his marriage to Dutch-American Gentile Elizabeth Hagedorn in Mercer County, Ohio. From the time of their first arrival in 1865, the Mayer family was very heavily involved in St. Mary, Help of Christians Parish, and Baldassar Mayer helped build the current church building during the early 1870s. He always retained, however, a very strong sense of pride in his Jewish ancestry and, shortly before his death on 4 July 1890, Mayer asked for his kippah, sat up in his deathbed, and sang two traditional blessings from the Hebrew Bible over his assembled family: Eshet Ḥayil (Hebrew: אשת חיל, “Woman of Valor”) Book of Proverbs Chapter 31 Verses 10–31, over his wife, and Birkut Kohanim (Hebrew: ברכת כהנים, “Priestly Blessing”), Book of Numbers Chapter 6 Verses 23-27, over their many children and grandchildren.