Elmhurst, IL USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Elmhurst, IL USDA Loan Eligibility Guide

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

Questions Call (888)416-4805

Get Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local home buying seminar – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

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

    Call Now phone
    Do you need a Pre-Approval?
    Get a same day Elmhurst, Illinois USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Elmhurst, Illinois

    Elmhurst is a city mostly in DuPage County and overlapping into Cook County in the U.S. state of Illinois, and a western suburb of Chicago.

    Members of the Potawatomi Native American people, who settled along Salt Creek just south of where the city would develop, are the earliest known settlers of the Elmhurst area. Around 1836, European-American immigrants settled on tracts of land along the same creek. At what would become Elmhurst City Centre, a native of Ohio named Gerry Bates established a community on a tract of “treeless land” in 1842.

    The following year, Hill Cottage Tavern opened where St. Charles Road and Cottage Hill Avenue presently intersect. In 1845, the community was officially named Cottage Hill when a post office was established. Four years later, the Galena and Chicago Union Railroad was given right-of-way through Cottage Hill giving farmers easier access to Chicago. The first Elmhurst railroad station was built in 1894. The community changed its name to Elmhurst in 1869. In 1871, Elmhurst University was organized and currently has 3,500 undergraduates and about 300 graduate students. Elmhurst was incorporated as a village in 1882, with a population between 723 and 1,050, and legal boundaries of St. Charles Road to North Avenue, and one half mile west and one quarter mile east of York Street. Elmhurst Memorial Hospital was founded in 1926 as the first hospital in DuPage County.

    The Memorial Parade has run every Memorial Day since 1918. The annual Elmhurst St. Patrick’s Day Parade continues to be the third largest parade of that sort in the Chicago area, following the more famous parades downtown and on the city’s South Side.

    Since 1964, it has been home to Elmhurst CRC, one of the largest congregations of the Christian Reformed Church in North America.