University Park, IL USDA Eligibility

USDA Eligibility Guide

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University Park, IL USDA Loan Eligibility Guide

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

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    More About University Park, Illinois

    University Park is a village in Will County with a small portion in Cook County in the U.S. state of Illinois. It is a south suburb of Chicago. The village is one of the region’s few planned communities; it was developed in the 1960s as Wood Hill, then Park Forest South, and finally University Park. Governors State University was established in the village in 1969. The village population was 7,145 at the 2020 census.

    In the late 1950s, Woodhill Enterprises purchased land south of Park Forest for a large subdivision. Building began in 1961, but by 1967 Wood Hill had only 240 homes. Residents created a homeowners association, which fostered a community identity.

    In 1966, Nathan Manilow, one of the developers of Park Forest, started to purchase land around Wood Hill. Park Forest had been a model for planning in the 1940s, and Lewis Manilow, son of Nathan, formed New Community Enterprises (NCE) to build “a whole new town”. Major partners included Illinois Central Industries and United States Gypsum Company.

    NCE supported the incorporation of Park Forest South in 1967 with projections for 100,000 residents. Under the federal New Communities Act of 1968, Park Forest South was designated as one of 15 such “new communities”. Planning included space for residential, commercial, and industrial development and addressed the needs of education, recreation, and faith communities. Racial integration was a goal from the beginning, and Park Forest South became a leader in support of open housing.

    Governors State University opened its doors in 1969. The Illinois Central Railroad made its first commuter extension in 40 years there. As a result, it is the last stop on the Metra Electric District line. The city’s initial plan included wooded preserves and recreation areas, building on recreation area set-asides and major land donations by the Manilow organization.