Illinois Mortgage Overview
What would it be like to live within
minutes of one of the greatest cities in the country? Ask the 12 million+
people who live in Illinois and just hours away from Chicago. Illinois is a
state with a lot of seasonal changes and plenty of areas of hustle and bustle
or quiet country life depending on what you like.
The average home price in Illinois is
$195,000 and about 66 percent of the homes are owner-occupied. If you've had
your eye on becoming a homeowner in Illinois, here are the mortgage options
available to you:
Illinois conventional loans
are great for good credit borrowers. You don't need perfect credit, but at
least a 660 credit score is required. Conventional lenders need just a 3 percent
down payment and an average debt ratio. You'll pay Private Mortgage Insurance
if you put less than 20 percent down, but it's temporary. Lenders cancel it
when you owe less than 80 percent of the home's value.
Illinois FHA loans
FHA loans are for borrowers
with less-than-perfect credit or a recent public record. FHA loans have
flexible underwriting guidelines including just a 580 credit score and 3.5
percent down payment. You may even use gift funds for your down payment with an
Illinois VA loans
VA loans are for veterans
who served our country. After serving 181 days, you may be eligible for a no
down payment VA loan. The loan program has the most flexible underwriting
guidelines making it easy for veterans to become homeowners without stress.
Illinois USDA loans
USDA loans are for
borrowers who don't qualify for any other loan program and who make less than
115 percent of the average income for their area. USDA loans are for rural
areas of Illinois, but they aren't as isolated as you may think. It's a great
option for first-time homebuyers with at least a 640 credit score.
First-Time Homebuyer Programs in Illinois
The Opening Doors
program helps renters become homeowners with a low-cost 30-year fixed mortgage.
It also provides a 0 percent 2nd mortgage for up to $6,000 in
closing cost and down payment assistance.
Student loans don't need to stop you
from buying a home in Illinois. SmartBuy provides $5,000 in closing cost
assistance and up to $40,000 in student loan payoff assistance.
IDHA Access Forgivable
Receive up to 4 percent
of the purchase price ($6,000 max) for down payment and closing cost
assistance, forgiven over 10 years. You'll also get a 30-year fixed mortgage
for the first mortgage with a below market rate.
IDHA Access Deferred
Receive up to 5 percent
of the purchase price ($7,500 max) for down payment and closing cost
assistance. The interest-free loan doesn't require repayment unless you sell
the home or refinance the mortgage. It comes with a 30-year fixed mortgage of
either conventional, FHA, VA, or USDA.
IDHA Access Repayable
Receive up to 10 percent
of the purchase price for down payment and closing cost assistance. The loan is
repayable over 10 years along with the standard 30-year mortgage for the