Tightening Home Loan Restrictions
For most Americans, the dream of owning your own home has long been a key component to the American dream. But ever since the mortgage meltdown a few years ago, and the great economic recession that ensued, it has become one of the hardest times in American history to purchase a home. Even with home prices at near record lows, it is still harder than ever for average hard working Americans to get the home loans they need to secure a mortgage. This is mainly due to bank’s tightening lending restrictions and increasing the mandatory down payment needed to purchase a home upward to 20-30%. If you’re struggling to get approved for a home loan, even though you have average credit and enough income to afford monthly mortgage payments, you may want to think about checking out what the Illinois USDA Rural home loan program has to offer.
Illinois USDA Rural Home Loan Program
The Illinois USDA rural home loan program provides low interest, fix rated mortgages for middle to low income households, who may be struggling to afford all the costs associated with purchasing a home. One of the biggest benefits of USDA Loans in Illinois is that it requires absolutely no down payment. Instead of needing to save tens of thousands of dollars for a 20-30% down payment, the USDA home loan program allows you to purchase the home of your dreams with almost no money down. This can be a tremendous benefit to Illinois households who may have enough income to afford monthly mortgage payments, but have no way of coming up with the costly down payment.
Other benefits to the program include:
- 30 year fixed rate
- No Maximum loan amount
- Both new and existing homes may qualify
- Flexible Credit Guidelines
- Low mortgage insurance
- Seller can pay closing costs
- Tends to have lower interest rates than traditional mortgages
Illinois USDA Eligible Properties
For a property to have USDA eligibility in the state of Illinois it must be located in a predominantly rural area, or any small community outside of a major Illinois city with less than 20,000 residents. While USDA eligible properties are generally located in rural areas, there are actually many suburban communities that still qualify for USDA loan assistance, as long as they have populations under 20,000. For example, there are plenty of USDA eligible homes outside of Illinois cities like Champaign and Kenosha that are eligible. For more information on USDA eligibility properties near you please visit the USDA loans home page or contact your trusted USDA home loan provider.
Income Requirements
Because the Illinois USDA home loan program is exclusively designed for middle to low income households, there are strict income limits in place that vary from county to county. To be eligible for a USDA rural home loan, your annual household income must not exceed 115% of the average median income for that area. If your income is slightly over this income limit, there are various deductions in place that may help bring you below this threshold. These deductions aren’t large but provide a few hundred dollars off for taking care of an elderly family member, having children in college, taking care of a disabled child, to name a few. For more information on whether you qualify for an Illinois USDA rural home loan please contact a USDA home loan lender.
