Taylorville, IL USDA Eligibility

USDA Eligibility Guide

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Taylorville, IL USDA Loan Eligibility Guide

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

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    More About Taylorville, Illinois

    Taylorville is a city in and the county seat of Christian County, Illinois, United States. The population was 10,506 at the 2020 census, making it the county’s largest city.

    Taylorville was founded on May 24, 1839, and was named after John Taylor, a planning commissioner for the state of Illinois.

    Taylorville was known (in the early to mid-1990s) to have had a high rate of neuroblastoma, a cancer affecting the adrenal gland and striking children. The local power company Central Illinois Public Service Company was sued and lost for contaminating the groundwater in 1994.

    Some outer homes and a business in Taylorville were damaged by an F1 tornado on April 2, 2006.

    On August 11, 2012, a Beechcraft Model 18 airplane crashed into a residential area of Taylorville, killing the pilot but injuring none on the ground. A subsequent NTSB investigation into the accident concluded that an improper flap configuration and failure to maintain the correct airspeed due to pilot error, resulted in the crash.