Goodfield, IL USDA Loans VS FHA Loans

Goodfield, IL USDA Home Loans vs Goodfield, IL FHA Home Loans: Which is Right for You?

Homeownership is a dream for many people. To make it achievable for a wider range of individuals, there are various mortgage programs available. Among the most popular are USDA Home Loans and Goodfield, IL FHA Home Loans. Both of these loan programs aim to assist buyers, especially those with low-to-moderate incomes, but they serve different populations and have distinct criteria. Let’s delve into the differences and similarities of these two loan types to help you decide which one might be right for you.

Goodfield, IL USDA Home Loans

1. What it is: The Goodfield, IL USDA Home Loan program is backed by the United States Department of Agriculture (USDA). It’s designed to help rural residents, especially those with lower incomes, purchase homes.

2. Eligibility:

  • Location: Homes must be located in eligible rural areas as defined by the USDA.
  • Income limits: There are maximum income limits, which vary based on the size of the household and the county in which the property is located.
  • Credit score: While the USDA doesn’t have a set credit score requirement, most lenders require at least a 640 score.

3. Benefits:

  • No down payment: USDA loans allow for 100% financing.
  • Competitive interest rates: Often lower than conventional loans.
  • Low mortgage insurance: The upfront guarantee fee can be rolled into the loan, and the annual fee is generally lower than FHA mortgage insurance.

4. Limitations:

  • Geographic restrictions: The program is limited to certain rural areas.
  • Income caps: Not suitable for those with higher incomes.

Goodfield, IL FHA Home Loans

1. What it is: FHA Home Loans are backed by the Federal Housing Administration (FHA). This program aims to help those with low-to-moderate incomes and Goodfield first-time homebuyers purchase homes.

2. Eligibility:

  • Credit score: Borrowers need a minimum credit score of 580 to qualify for the 3.5% down payment. Those with scores between 500-579 can still qualify but will need a 10% down payment.
  • Debt-to-Income Ratio (DTI): Generally, the ratio should be less than 43%, but exceptions can be made with compensating factors.
  • Mortgage Insurance: Borrowers are required to pay both an upfront and an annual mortgage insurance premium.

3. Benefits:

  • Low down payment: Requires only 3.5% down with a 580 credit score.
  • Flexible credit requirements: Suitable for those with lower credit scores.
  • Assumable mortgage: An Goodfield, IL FHA loan can be assumed by a future buyer, which can be a selling point in a rising interest rate environment.

4. Limitations:

  • Mortgage insurance: FHA loans come with both upfront and ongoing mortgage insurance premiums.
  • Loan limits: There are maximum loan amounts, which vary by county.

Which is Right for You?

Your decision between a USDA Home Loan and an Goodfield, IL FHA Home Loan will largely depend on your individual circumstances:

  • Location of Desired Property: If you’re looking at a home in a rural area, the USDA loan might be the best fit. If you’re considering urban or suburban areas, an FHA loan may be the only option among the two.
  • Down Payment: If you don’t have a down payment, a USDA loan, with its 100% financing, can be attractive.
  • Credit Score: If you have a lower credit score, the FHA loan might be more forgiving.
  • Income: Remember that USDA loans in Goodfield, IL  have income caps which could rule out higher earners, while FHA loans in Goodfield do not.

To make the best decision, consider speaking with a mortgage professional who can provide advice tailored to your situation. Both Goodfield, IL  USDA and FHA loans offer opportunities for homeownership, but the right one for you will depend on your personal and financial circumstances.

Questions about the Goodfield, IL USDA and FHA loan options? Call today (888)416-4805.

We service the following areas for FHA and USDA loans.

Learn more about Goodfield, Illinois

Goodfield is a village in Tazewell and Woodford counties in Illinois. The population was 936 at the 2020 census, up from 686 at the 2000 census. Goodfield is part of the Peoria, Illinois, Metropolitan Statistical Area.

The site of Goodfield was surveyed for John Guth of Washington, Illinois, on 29 August 1888. The name Goodfield is believed to derive from Guthville (via Goodville), named after John Guth.

The area of the village gained local, national, and global notoriety when a 9-year-old boy allegedly set fire to a trailer that contained his mother and several other relatives, killing five, including at least one or two young children who were relatives. The fire was, after some time, determined to be suspicious by the coroner and fire investigators and area police. The boy, who as a young juvenile cannot be named (there is, after the mother gave an interview, also a court-imposed gag order on all parties), is subsequently being prosecuted on five first degree murder charges and aggravated arson resulting in death. The boy, taken from his mother after the fire, is a ward of the state, and his grandparents are now his legal guardians. His initial appearance was before Judge Charles Feeney, who took careful time to explain the charges and their meaning. Under Illinois law, those under 10 cannot be detained except for brief questioning, and those under 13 cannot be detained in a juvenile facility or juvenile detention center. They must be at least 16 to be transferred to adult court. He will face probation for a minimum of five years but not after age 21, restitution and/or some form of service, and intensive therapy, counseling, and rehabilitation. He is the youngest to be charged in central Illinois since at least 2006, especially for such a serious offense that in adult could bring life without parole in the non-death penalty state.

According to the 2010 census, Goodfield has a total area of 1.698 square miles (4.40 km2), of which 1.69 square miles (4.38 km2) (or 99.53%) is land and 0.008 square miles (0.02 km2) (or 0.47%) is water.

As of the census of 2000, there were 686 people, 229 households, and 199 families residing in the village. The population density was 474.2 inhabitants per square mile (183.1/km2). There were 235 housing units at an average density of 162.4 per square mile (62.7/km2). The racial makeup of the village was 99.13% White, 0.15% African American, 0.29% from other races, and 0.44% from two or more races.