Tomahawk, WI USDA Eligibility

USDA Eligibility Guide

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Tomahawk, WI USDA Loan Eligibility Guide

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

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    Mortgage Resource Center

    More About Tomahawk, Wisconsin

    Tomahawk is a city in Lincoln County, Wisconsin, United States. The population was 3,441 at the 2020 census. The city is located to the northeast of the Town of Tomahawk and is not contiguous with it.

    Before 1837, the land where Tomahawk is now situated belonged to the Ojibwe, who traded actively with fur traders such as the American Fur Company and the Northwest Company. After the 1837 cession, the practical situation changed only slightly: the federal survey teams had not arrived yet, logging activity was still light, and Ojibwe continued to actively occupy the general area. There was a village just north of the modern Tomahawk, in the vicinity of modern Bradley, and a village on Skanawan Creek. The 1854 Treaty of La Pointe created the reservations at Lac du Flambeau, Lac Courte Oreilles and Bad River. Even after this treaty, the region was largely public domain land and the treaties allowed the Ojibwe usufructory rights to hunt, fish, gather wild rice and make maple sugar. Some Ojibwe received their annuity payments in Wausau until the payments ended in 1874. By that time most Ojibwe were living permanently on the reservations.

    Logging activity from the Tomahawk River upstream began about 1860 and surged after the Civil War. By 1880 several families were living close to Tomahawk-Wisconsin river confluence, including owning property within the present city limits of Tomahawk. The location was variously known as Bouchard’s Station or The Forks, short for Forks of the Wisconsin.

    Tomahawk traditionally traces its founding to the establishment of the construction camps for a dam and the railroad in 1886. The company leading the effort was the Tomahawk Land and Boom Company, headed by William H. Bradley, who is thus considered to be the principal founder of Tomahawk. The Tomahawk Land and Boom Company was owned 51 percent by the Chicago, Milwaukee and Saint Paul railroad, and 49 percent by the Land, Log and Lumber Company (Bradley and his partners). The dam was a large capital investment for the era, and was one of the largest in the world when it was completed. The town site was platted in 1887, with lots sold in Milwaukee that summer. The agent for the sale was Henry Payne. The city was incorporated in 1891. In the 10 years after the first construction camps were built, Tomahawk grew rapidly, boasting many stores, a three-story hotel, many saw mills, a paper mill, and service via three railroads.

    Among the events highlighting Tomahawk’s history since that time are: