Wauwatosa, WI USDA Eligibility

USDA Eligibility Guide

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Wauwatosa, WI USDA Loan Eligibility Guide

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

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    More About Wauwatosa, Wisconsin

    Wauwatosa (/ˌwɔːwəˈtoʊsə/; known informally as Tosa; originally legally known as Wau-wau-too-sa, also called Hart’s Mill) is a city in Milwaukee County, Wisconsin, United States. The population was 48,387 at the 2020 census. Wauwatosa is located immediately west of Milwaukee, and is a part of the Milwaukee metropolitan area. It is named after the Potawatomi Chief Wauwataesie and the Potawatomi word for firefly.

    The lush Menomonee Valley of the Wauwatosa area provided a key overland gateway between the rich glacial farmland of southeastern Wisconsin and the Port of Milwaukee. In 1835, Charles Hart became the first Euro-American to settle here, followed that year by 17 other families. The following year a United States Road was built from Milwaukee through Wauwatosa, eventually reaching Madison. Charles Hart built a mill in 1845 on the Menomonee River which gave the settlement its original name of “Hart’s Mill.” The mill was torn down in 1914.

    The Town of Wau-wau-too-sa was created by act of the Wisconsin Territorial Legislature on April 30, 1840. As of the 1840 census, the population of the Town of Wau-wau-too-sa or Wauwatosa was 342. The town government was organized in 1842. The town’s borders originally extended from the present-day Greenfield Avenue in the south to Hampton Avenue in the north, and from 27th Street in the east to the Waukesha County line in the west, encompassing sections of present-day Milwaukee, West Milwaukee and West Allis, plus the southern part of former North Milwaukee, which was wholly annexed into the city of Milwaukee in 1927. Most of the town was farmland through the remainder of the 19th century.

    In 1849 the Watertown Plank Road was constructed through Wauwatosa, mainly following the old Madison territorial road. In 1851 Wisconsin’s first railroad (later The Milwaukee Road) established Wauwatosa as its western terminus. The Village of Wauwatosa was incorporated from the central part of the Town of Wauwatosa in 1892, and was rechartered as the City of Wauwatosa on May 27, 1897.

    On November 25, 1952, the City of Wauwatosa more than doubled its size by annexing 8.5 square miles (22 square kilometers) of land west of the Menomonee River, the entire remaining portion of the Town of Wauwatosa, which became the home to several large cold storage and regional food distribution terminals. Industrial plants owned by firms including Harley-Davidson and Briggs & Stratton were also constructed.