USDA Eligibility Guide
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Washington, IL USDA Loan Eligibility Guide
1. Property Eligibility:
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- The home must be located in a USDA-eligible rural or suburban area around Washington, 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:
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- 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 Washington, 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:
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- 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 Washington, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Washington, IL USDA home loan professionals. Get pre-approved with our easy and stress free Washington, IL USDA home mortgage today.
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More About Washington, Illinois
Washington is a city in Tazewell County, Illinois, United States. Washington is on U.S. Route 24 and Illinois Route 8, northeast of East Peoria. The population was 15,134 at the 2010 census, a 39.6 percent increase over 2000. It is a suburb of Peoria and is part of the Peoria Metropolitan Statistical Area.
Washington was founded in 1825 by William Holland Sr., who came from North Carolina and was hired by the U.S. government to provide blacksmith services to the local Native Americans. During his long and eventful life he was married three times, and was the father of twenty-one children: fourteen by his first wife and seven by his second wife. He had eighty-two grandchildren and fifty great grandchildren. He died in Washington on November 27, 1871, at the age of ninety-one. The post office (and later the city) was originally named Holland’s Grove in 1833 before being renamed in honor of the first U.S. president, George Washington, in 1837.
In the 1920s, a man named George Heyl put Washington on the map as the home of the famous Heyl Pony Farm. Some of the original barns still exist on North Main Street. The Heyl Pony Farm supplied Shetland ponies to buyers around the world; George Heyl also raised pure bred poultry. When Heyl died suddenly in 1932, it was recorded as one of the largest funerals ever held in Washington.
Another local site of interest is the “old canning factory”, which is now occupied by American Allied Railway Equipment Company Inc. In 1943, the canning factory (which after the war was run by the Libby’s company) had a shortage of workers, and the government needed K rations and canned goods to feed the troops. So 50 captured German soldiers from the prisoner of war camp known as Camp Ellis in Fulton County were brought in. The Washington sub-camp was first commanded by Colonel John S. Sullivan, and later by Captain T. A. Cox. The POWs were brought in on the old rail line that ran down Wood Street (the foundation of a sentry tower can be seen just northeast of the intersection of Wood and Jefferson near the entrance to the bike trail). They were trucked from the camp to various local farms to help with the pumpkin harvest. The prisoners were allowed no visitors, nor could residents speak to the prisoners. An exception was made for local ministers, such as Pastor Kammeyer from St. Mark’s Lutheran who spoke fluent German and ministered to the POWs spiritual needs.[citation needed]
A new community center, named Five Points Washington, opened in October 2007. The facility houses the Washington Public Library, a performing arts center, swimming pools, fitness center, and banquet center.