Peoria Heights, IL USDA Eligibility

USDA Eligibility Guide

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Peoria Heights, IL USDA Loan Eligibility Guide

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

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    More About Peoria Heights, Illinois

    Peoria Heights is a village lying in Peoria County in the U.S. state of Illinois. The population was 6,156 at the 2010 census, down from 6,635 in 2000. Peoria Heights is a suburb of Peoria, is sometimes referred to as Uptown, and is surrounded by the city except for its eastern boundary on Peoria Lake, a relatively wider section of the Illinois River. It is part of the Peoria, Illinois Metropolitan Statistical Area.

    According to the 2010 census, Peoria Heights has a total area of 6.969 square miles (18.05 km2), of which 2.65 square miles (6.86 km2) (or 38.03%) is land and 4.319 square miles (11.19 km2) (or 61.97%) is water. That most of the village is water is due to the fact that most of Upper Peoria Lake lies within its boundaries; this can be seen on official state maps.

    Topographically, the village can be roughly divided into three zones. The Illinois River floodplain, the bluff, and the plateau. While its eastern border is fairly regular with the river’s edge, the rest of its municipal border, with Peoria, is quite irregular and convoluted.

    According to the Census Bureau records through 2007, Peoria Heights lies in three counties (Peoria, Woodford, and Tazewell). While neither Tazewell nor Woodford counties consider Peoria Heights to be within their jurisdiction, the state of Illinois does show that across Peoria Lake from the rest of the village, a small, uninhabited[citation needed] area exists both within Peoria Heights and Woodford County. However, the Census Bureau claim that Peoria Heights is also within Tazewell County is unsupported by any state, county, or municipal websites.

    The area was developed by white settlers in 1898, under the name Prospect Heights Land Company. When it was incorporated, it was called Prospect Heights. Three years later, they changed it to Peoria Heights to avoid confusion with the Prospect Heights community near Chicago.