Standard, IL USDA Eligibility

USDA Eligibility Guide

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Standard, IL USDA Loan Eligibility Guide

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

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    More About Standard, Illinois

    Standard is a village in Putnam County, Illinois, United States. The population was 220 at the 2010 census, down from 256 in 2000. It is part of the Ottawa Micropolitan Statistical Area.

    The B.F. Berry Coal Company, a division of the Chicago, Milwaukee, and St. Paul Railroad, hired John Cherry in 1905 to sink a new mine. They set up a new railroad between Granville and Oglesby to service the shaft. The village was called Berry until 1908 when it was changed to Taft. Then in 1914 it was renamed Standard because of confusion with another town named Taft. Initially the town was just two large boarding houses for the miners, but later the company built houses for those with families. The mine closed in 1924.

    Standard is located at 41°15′23″N 89°10′44″W / 41.25639°N 89.17889°W / 41.25639; -89.17889 (41.256450, -89.179014).

    According to the 2010 census, Standard has a total area of 0.7 square miles (1.81 km2), all land.

    As of the census of 2000, there were 256 people, 115 households, and 67 families residing in the village. The population density was 453.2 inhabitants per square mile (175.0/km2). There were 119 housing units at an average density of 210.7 per square mile (81.4/km2). The racial makeup of the village was 98.44% White, and 1.56% from two or more races. Hispanic or Latino of any race were 1.95% of the population.