Bellwood, IL USDA Eligibility

USDA Eligibility Guide

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Bellwood, IL USDA Loan Eligibility Guide

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

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    3. Income Limits:

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

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    More About Bellwood, Illinois

    Bellwood is a village in Proviso Township, Cook County, Illinois, United States. Located 13 miles (21 km) west of Chicago’s downtown Loop, the Village of Bellwood is bounded by the Eisenhower Expressway (south), the Proviso yards of the former Chicago & Northwestern, now Union Pacific Railroad (north), and the suburbs of Maywood (east) and Hillside and Berkeley (west). The population was 18,789 at the 2020 census.

    Bellwood was incorporated on May 21, 1900. The municipality took its name from one of the village’s early subdivisions, “Bellewood”. However, in later years, the final “e” was dropped.
    The region, which was mostly flat grassland, was initially mostly farmland. A few businesses, including a few taverns, were drawn to the initial subdivision. In reaction to dry Maywood’s effort to annex the area, businesses that served alcohol petitioned for incorporation. Between 1900 and 1930, Bellwood’s population numbers increased steadily. By 1920, the village’s population of 943 had more than quadrupled, with many German and Russian immigrants. The increase to 4,991 persons in 1930 is due to the annexation of territory west of Mannheim Road in 1926, as well as ongoing migration.

    The Chicago, Aurora and Elgin Railway and the Chicago & North Western Railway provided rail passenger service, which promoted residential growth in neighboring portions of Bellwood. The 1970s saw racial upheaval and inclusion in a Supreme Court case in the United States. Bellwood sued a local real estate company in 1975, alleging racial discrimination. Four years later, the Supreme Court issued a historic decision allowing governments to utilize testers and sue when discrimination occurs. The black population of Bellwood jumped from 1.1 percent in 1970 to 35 percent in 1980 and 70 percent in 1990.

    A few major firms exist in Bellwood today, but the collapse of many other large sectors has resulted in a decrease in employment and tax revenue. Despite these contributions, the community saw some new development as a result of various minor industrial and commercial organizations.

    According to the 2021 census gazetteer files, Bellwood has a total area of 2.40 square miles (6.22 km2), all land.