Sugar Grove, IL USDA Eligibility

USDA Eligibility Guide

“Find out if you’re eligible for a USDA home loan with Smart Mortgage!”

Sugar Grove, IL USDA Loan Eligibility Guide

A USDA (United States Department of Agriculture) mortgage, also known as a Sugar Grove, 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 Sugar Grove, 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 Pre-Approved Now

    Once this form is completed you will have the option to start your USDA mortgage application.

    Thank you for choosing iloanusda.com

    Get cash from your home.

    Apply to see how a cash out refinance can help you.

    Get Cash

    Homebuyer Seminars

     Discover the keys to homeownership at our local home buying seminar – your first step towards securing your dream home!

    Seminars

    See our home loans.

    Explore our diverse range of home loan programs tailored to fit your unique needs!

    All Programs

    3. Income Limits:

    • Income limits vary by county and household size. You’ll need to check with our Sugar Grove, 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 Sugar Grove, IL USDA mortgages, eligibility details can change. It’s always a good idea to consult with one of our Sugar Grove, IL USDA home loan professionals. Get pre-approved with our easy and stress free Sugar Grove, IL USDA home mortgage today.

    Call Now phone
    Do you need a Pre-Approval?
    Get a same day Sugar Grove, Illinois USDA pre-approval to shop for your dream home!
    Start My Approval

    Mortgage Resource Center

    More About Sugar Grove, Illinois

    Sugar Grove is a village in Kane County, Illinois, United States. The population at the 2010 census was 8,997, and in 2018 the estimated population was 9,803.

    Sugar Grove is located in southern Kane County at 41°46′N 88°27′W / 41.767°N 88.450°W / 41.767; -88.450 (41.772529, -88.442374). It is bordered to the east by the city of Aurora and to the west by the village of Big Rock. Sugar Grove nearly encircles the unincorporated community of Prestbury, and the city of Yorkville is to the south. Downtown Chicago is 46 miles (74 km) to the east.

    According to the 2010 census, Sugar Grove has a total area of 10.485 square miles (27.16 km2), of which 10.47 square miles (27.12 km2) (or 99.86%) are land and 0.015 square miles (0.04 km2) (or 0.14%) are water.

    Sugar Grove is located within a band of heavy growth on the western edge of the Chicago metropolitan area, stretching from approximately the Huntley area in McHenry County to the New Lenox area in Will County. Sugar Grove adopted its first comprehensive land use plan on January 12, 1981.[citation needed]

    As of the census of 2000, there were 3,909 people, 1,272 households, and 1,074 families residing in the village. The population density was 606.1 inhabitants per square mile (234.0/km2). There were 1,297 housing units at an average density of 201.1 per square mile (77.6/km2). The racial makeup of the village was 95.86% White, 1.38% African American, 0.03% Native American, 0.51% Asian, 1.28% from other races, and 0.95% from two or more races. Hispanic or Latino of any race were 4.43% of the population.