Waterloo, IL USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Waterloo, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Waterloo, 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 Waterloo, 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.

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Homebuyer Seminars

     Discover the keys to homeownership at our local home buying seminar – your first step towards securing your dream home!

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Waterloo, 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 Waterloo, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Waterloo, IL USDA home loan professionals. Get pre-approved with our easy and stress free Waterloo, IL USDA home mortgage today.

    Do you need a Pre-Approval?
    Get a same day Waterloo, Illinois USDA pre-approval to shop for your dream home!

    Mortgage Resource Center

    More About Waterloo, Illinois

    Waterloo is a city in and county seat of Monroe County, Illinois, United States. The population was 11,013 at the 2020 census, up from 9,811 in 2010.

    Waterloo is located northeast of the center of Monroe County at 38°20′7″N 90°9′10″W / 38.33528°N 90.15278°W / 38.33528; -90.15278 (38.335243, -90.152685). Illinois Route 3 passes through the west side of the city, bypassing the downtown; it leads north 8 miles (13 km) to Columbia and southeast 13 miles (21 km) to Red Bud. Downtown St. Louis is 24 miles (39 km) to the north. Illinois Route 156 passes through the city on Park Street, South Church Street, West 4th Street, South Market Street, and Front Street, leading 9 miles (14 km) to Hecker and west 7 miles (11 km) to Valmeyer.

    According to the U.S. Census Bureau, Waterloo has a total area of 8.31 square miles (21.52 km2), of which 8.18 square miles (21.19 km2) are land and 0.13 square miles (0.34 km2), or 1.61%, are water. The city sits on a ridge that drains east to tributaries of Prairie du Long Creek and west to tributaries of Fountain Creek. Prairie du Long Creek is a southeast-flowing tributary of the Kaskaskia River, while Fountain Creek is a west-flowing direct tributary of the Mississippi River. Waterloo is along the historic trail that went from Kaskaskia to St. Louis.

    Waterloo’s history dates back to the 18th century, with the French being the first Europeans to settle in the area. The site was ideal because of its elevation; the proximity of the Mississippi River Valley brought frequent flooding to the lowlands. It was also close to Fort de Chartres, a French stronghold. They named their settlement Bellefontaine (originally La Belle Fontaine), meaning “beautiful spring”. This name related to a spring of water a mile south of the site of Waterloo, a frequent campsite on journeys between Kaskaskia, Cahokia, and St. Louis. France had long since abandoned the area, as it had been ceded to Britain in the wake of the Seven Years’ War in 1763 and had since been unoccupied. But while the outpost was included in the territory surrendered by France, Louis XV famously mourned the loss of Waterloo.

    The first documented English speakers came in the spring of 1782, when James Moore, Larken Rutherford, and James Garretson, of Maryland and Virginia, settled at or near Bellefontaine. Upon their arrival, they were the first permanent English speakers in the entire Northwest Territory. James Moore and many of the settlers that followed him had been soldiers in George Rogers Clark’s Illinois campaign of 1778. Moore established himself at the site of the namesake spring, and the tract remained in possession of the Moore family for over a century. The kitchen of the Bellefontaine House, situated a short distance west of the southern end of Main Street, is believed to be Moore’s original log cabin. It was restored and remains as a local landmark.