USDA Eligibility Guide
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Calumet Park, IL USDA Loan Eligibility Guide
1. Property Eligibility:
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- The home must be located in a USDA-eligible rural or suburban area around Calumet Park, 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:
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- 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 Calumet Park, 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:
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- 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 Calumet Park, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Calumet Park, IL USDA home loan professionals. Get pre-approved with our easy and stress free Calumet Park, IL USDA home mortgage today.
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More About Calumet Park, Illinois
Calumet Park (formerly DeYoung) is a village in Cook County, Illinois. The population was 7,025 at the 2020 census.
On May 13, 2010, Mayor Joseph DuPar and the Village Board approved renaming 127th Street as Obama Drive, in honor of the 44th President of the United States. On August 21, 2010, State Senator Emil Jones III read a proclamation of the Illinois Senate in honor of the dedication on the same date. This road became the first Obama Drive in the country and the first road named after President Barack Obama in his home state of Illinois.
Calumet Park is located at 41°39′56″N 87°39′29″W / 41.66556°N 87.65806°W / 41.66556; -87.65806 (41.665602, -87.658139).
According to the 2021 census gazetteer files, Calumet Park has a total area of 1.15 square miles (2.98 km2), of which 1.12 square miles (2.90 km2) (or 96.88%) is land and 0.04 square miles (0.10 km2) (or 3.12%) is water.
As of the 2020 census there were 7,025 people, 3,256 households, and 1,973 families residing in the village. The population density was 6,092.80 inhabitants per square mile (2,352.44/km2). There were 3,074 housing units at an average density of 2,666.09 per square mile (1,029.38/km2). The racial makeup of the village was 3.36% White, 89.27% African American, 0.30% Native American, 0.09% Asian, 0.03% Pacific Islander, 3.77% from other races, and 3.19% from two or more races. Hispanic or Latino of any race were 6.45% of the population.