Fox Lake, IL USDA Eligibility

USDA Eligibility Guide

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Fox Lake, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Fox Lake, 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 Fox Lake, 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 Fox Lake, 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 Fox Lake, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Fox Lake, IL USDA home loan professionals. Get pre-approved with our easy and stress free Fox Lake, IL USDA home mortgage today.

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    More About Fox Lake, Illinois

    Fox Lake is a village in Grant and Antioch townships in Lake County, Illinois and Burton Township, McHenry County, Illinois, United States. The population was 10,978 at the 2020 census. It is located approximately 57 miles north of Chicago.

    The village was incorporated on December 15, 1906, and certified by the state on April 13, 1907. The area was first explored during the 17th century by the French. In the late 19th century, it was known as Nippersink Point. Early in the 20th century, there were but a few hundred residents. During the summer season, however, the population would reach an estimated 20,000 people, and at its peak, the area had 50 hotels and 2,000 cottages. Infamous Chicago gangster Al Capone is reported to have utilized an establishment now known as the Mineola Hotel and Restaurant as a hideout, although this has never been documented. In 1979, the Mineola was listed on the National Register of Historic Places and may be the largest wooden frame structure in the state.

    Many Chicagoans have established summer homes in Fox Lake. The village is situated among the Chain O’Lakes, where swimming, boating, jet skiing, tubing and boarding are popular activities. In 2006, there were an estimated 28,000 boats registered on the lake system.

    Boating accidents are prevalent in today’s society, however, number of accidents on Fox Lake have decreased in part to stricter regulations on boating under the influence of alcohol and other factors. Fiscal year 2010 had only one accident and death by boat. That number rose in 2015 to 3 accidents, 1 injury and 1 death. The two fatalities in 2015 were caused by drowning due to alcohol use.

    In 2010, the new library opened next to the old library building. The new facility included expanded Adult and Youth Departments, a large public computer area, quiet study and reading rooms, and a Young Adult area.