USDA Eligibility Guide
“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”
Lake Forest, IL USDA Loan Eligibility Guide
1. Property Eligibility:
-
- The home must be located in a USDA-eligible rural or suburban area around Lake Forest, 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 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 Lake Forest, 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 Lake Forest, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Lake Forest, IL USDA home loan professionals. Get pre-approved with our easy and stress free Lake Forest, IL USDA home mortgage today.
Do you need a Pre-Approval?
Get a same day Lake Forest, Illinois USDA pre-approval to shop for your dream home!
Mortgage Resource Center
USDA Loans in Illinois: Benefits, Eligibility, and Popular Cities
Buying a home is a significant milestone, and for many, finding the right loan program makes all the difference. If you're considering Read moreBarndominium Financing Made Easy with iLoanUSDA
Barndominium Financing Made Easy with iLoanUSDA: Your One-Time Construction Loan Solution Barndominiums, the stylish and practical combination Read more
We also provide USDA home loans in the following cities
More About Lake Forest, Illinois
Lake Forest is a city located in Lake County, Illinois, United States. Per the 2020 census, the population was 19,367. The city is along the shore of Lake Michigan, and is a part of the Chicago metropolitan area and the North Shore. Lake Forest was founded with Lake Forest College and was laid out as a town in 1857, a stop for travelers making their way south to Chicago. The Lake Forest City Hall, designed by Charles Sumner Frost, was completed in 1898. It originally housed the fire department, the Lake Forest Library, and city offices.
The Potawatomi inhabited Lake County before the United States Federal Government forced them out in 1836 as part of Indian Removal of tribes to areas west of the Mississippi River.
As Lake Forest was first developed in 1857, the planners laid roads that would provide limited access to the city in an effort to prevent outside traffic and isolate the tranquil settlement from neighboring areas. Though the town is considerably more accessible today, due in part to the extensive new construction taking place further west, the much smaller neighborhood of eastern Lake Forest, near the coast of Lake Michigan, remains relatively secluded. It is one of the most scenic, historical, and architecturally significant suburbs of Chicago. These neighborhoods include estates and homes designed by distinguished architects such as Howard Van Doren Shaw, David Adler, Frank Lloyd Wright, Arthur Heun, Jerome Cerny, Henry Ives Cobb, and modernist George Fred Keck, among others. Landscape architects Frederick Law Olmsted and Jens Jensen also designed projects in Lake Forest. Market Square, designed by Howard Van Doren Shaw, was completed in 1916 as a commercial center for Lake Forest.
Lake Forest had an African-American community from very early on in its history, drawn to employment opportunities on the estates and educational institutions. Unlike other communities in the area, Lake Forest had many residents who were associated with the Abolitionist movement. Lake Forest’s first mayor and a founder of Lake Forest College, Sylvester Lind, was a major figure on the Underground Railroad, and was known to help escaped slaves settle in Lake Forest. Roxana Beecher, niece of abolitionist Harriet Beecher Stowe, taught integrated school in Lake Forest. A prominent early Lake Forest businessman was Samuel Dent, an escaped slave and Union veteran who ran a livery stable. A local jazz band was named in Dent’s memory. Another black entrepreneur was Julian Matthews, who ran a bakery, restaurant, and ice cream parlor with his wife Octavia. The second police officer hired in 1900 in Lake Forest was a black man from Kentucky, Walker Sales, who was hired in 1900 and stayed on for nearly 20 years. Members of this African-American community established the African Methodist Episcopal Church as of 1866, and it stood at what is now the corner of Maplewood and Washington Road. By 1900, another black church, the First Baptist Church of Lake Forest, had opened and is still active. By the 1980s, increased housing prices had encouraged some older black residents to sell their properties lucratively, but others stayed in the community. Lake Forest also had a small community of Jews, typified by wealthy socialites such as Albert Lasker and David Adler.
The secluded style of Lake Forest was intended as a form of protection. According to the president of the Lake Forest-Lake Bluff Historical Society, the captains of industry and upper-class elite who first settled in Lake Forest sought a refuge from late 19th and early 20th-century Chicago. In their view, the city was overrun with immigrants from southern and eastern Europe who had dangerous socialist ideas and indulged in excessive alcoholic consumption.