Thebes, IL USDA Eligibility

USDA Eligibility Guide

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Thebes, IL USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Thebes, Illinois

    Thebes is a village in and the former county seat of Alexander County, Illinois, United States. The population was 208 at the 2020 census, down from 436 at the 2010 census. It is part of the Cape Girardeau–Jackson, MO-IL Metropolitan Statistical Area. In 1860 the county seat was moved to Cairo, Illinois, at the confluence of the Ohio and Mississippi rivers.

    Thebes was established in 1835. At first it was known as Sparhawk Landing. It was the county seat of Alexander County from 1846 until 1859.

    Thebes, like the city of Cairo, also in Alexander County, is named after the Egyptian city of the same name. This part of southern Illinois is known as Little Egypt.

    Abraham Lincoln practiced law here. Legend holds that Dred Scott, a slave whose freedom suit reached the Supreme Court, may have been imprisoned in the local courthouse jail for a time while his case was heard. He had claimed freedom after being held in a free state but, setting aside decades of precedent, the US Supreme Court held that African Americans had no rights under the constitution, and slaves had no standing to sue for freedom (see Dred Scott v. Sanford).

    As the Mississippi River at Thebes is more than four feet deep, the town became a busy steamboat port. Union troops passed through Thebes on their way to attack the South during the American Civil War. Thebes was the site of the lynching of William Johnson on April 26, 1903. Thebes Bridge, an important railroad bridge, opened for rail traffic in 1905 and is still in use today.