Fairfield, IL USDA Eligibility

USDA Eligibility Guide

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

Fairfield, IL USDA Loan Eligibility Guide

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

    Homebuyer Seminars

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

    See our home loans.

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

    3. Income Limits:

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

    Do you need a Pre-Approval?
    Get a same day Fairfield, Illinois USDA pre-approval to shop for your dream home!

    Mortgage Resource Center

    More About Fairfield, Illinois

    Fairfield is a city in and the county seat of Wayne County, Illinois, United States, and the location of Frontier Community College. The population was 4,883 at the 2020 census.

    Fairfield is most famous for being the hometown of the “friendly” people, and for the Shelton Brothers Gang, notorious bootleggers who fought it out with the Harrisburg, Illinois-based Birger Gang to control criminal activities in Southern Illinois. During the first half of the 20th century, gang leaders Carl, Earl and Bernie Shelton made Fairfield a household name. Based on testimony of Charlie Birger himself, the Shelton Brothers were convicted for a 1925 unsolved mail carrier robbery of $15,000 and were sentenced to 25 years. They were released a few years later. Birger dominated bootlegging in Southern Illinois until he himself was hanged in Benton for the murder of West City Mayor Joe Adams in 1928. After serving their time, the Shelton brothers built a new criminal empire. Based in East St Louis, one of the most prosperous cities of its day, they controlled all vice from Peoria and southward.

    They met their demise at the hands of the Chicago mob and an insider Charles “Blackie” Harris. A land dispute led to Blackie joining forces with the Mob to kill off members of the Shelton gang. His most notable victim was Carl Shelton, the leader. He was ambushed several miles southeast of Fairfield, shot from his Jeep. Bernie was killed at his Peoria roadhouse. Earl moved to Jacksonville, Florida and became a successful land speculator.

    According to the 2010 census, Fairfield has a total area of 4.054 square miles (10.50 km2), of which 4.02 square miles (10.41 km2) (or 99.16%) is land and 0.034 square miles (0.09 km2) (or 0.84%) is water.

    As of the census of 2000, there were 5,421 people, 2,495 households, and 1,494 families residing in the city. The population density was 1,499.0 inhabitants per square mile (578.8/km2). There were 2,727 housing units at an average density of 754.0 per square mile (291.1/km2). The racial makeup of the city was 98.40% White, 0.09% African American, 0.26% Native American, 0.63% Asian, 0.02% Pacific Islander, 0.06% from other races, and 0.55% from two or more races. Hispanic or Latino of any race were 0.42% of the population.