USDA Eligibility Guide
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Hillside, 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 Hillside, 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 Hillside, 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 Hillside, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Hillside, IL USDA home loan professionals. Get pre-approved with our easy and stress free Hillside, IL USDA home mortgage today.
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More About Hillside, Illinois
Hillside is a village in Cook County, Illinois, United States. As of the 2020 census it had a population of 8,320.
Hillside is located at 41°52′29″N 87°54′1″W / 41.87472°N 87.90028°W / 41.87472; -87.90028 (41.874797, −87.900372).
According to the 2021 census gazetteer files, Hillside has a total area of 3.17 square miles (8.21 km2), all land.
German Lutheran immigrants planted farms and constructed Hillside’s first school and church (Immanuel) near the intersection of Wolf and 22nd Street in the 1840s, which marked the start of the community’s formal settlement. Although the majority of Hillside’s later construction was located north of 12th Street, Immanuel Lutheran Church and School were incorporated inside village boundaries, giving Hillside its characteristic form.
However, Marion Covell found a significant limestone deposit just a few feet below the surface of his property during the 1850s, despite the fact that farming was the main industry at the time. The quarry he started in 1854 was still in operation until the middle of the 1970s, providing crushed stone for the construction of roads across the Chicago metropolitan area. The John Sexton Company purchased the quarry in 1979 and operated it as a sanitary landfill.