No Money Down FHA VA Rural Housing in Chicago, Orland Hills, Elmhurst, Streamwood, Glenwood and Carol Stream Illinois
Illinois no money down loans are risky because you are starting off with no equity in the property. They are a colossal risk for the lender, therefore, any one that applies for one of these programs must have extensive documentation to prove their eligibility.
The three primary no money down mortgage solutions that we facilitate are USDA rural housing loans, FHA loans, and VA loans.
FHA, VA and USDA are also the best form of financing for Illinois no money down home mortgages.
Visit our no money down mortgage page for additional Illinois no money down program requirements.
Option 1: Illinois FHA Loans
Although this isn't a "No Money Down" option, the FHA loan is by far one of the best alternatives for people who want to buy a home and don't have much money to put down. With an FHA loan, you could put down as little as 3.5%. Plus, FHA loans are easier to qualify for.
Now, 3.5% may seem like a lot to come up with, but many people find that when they put their minds to it, 3.5% is actually possible. While you can't "borrow" the 3.5%, you can get a "gift" from a family member or borrow from your 401k.
FHA loans do have requirements and restrictions. Not all townhomes and condos qualify, and there is a maximum loan amount you can get based on where you purchase. FHA is the way to go if you've got the 3.5%..
Option 2: Illinois USDA and VA Loan Programs
The USDA and VA loan programs offer full 100% financing right now that will also allow the seller to pay all your closing costs.
The USDA loan is primarily used to help low/moderate-income families and individuals purchase homes in "rural" areas. View current income limits and ineligible areas in Illinois
.
The VA offers no money down financing to most veterans depending on length of service. The seller or builder can pay all your closing costs and you have a low monthly payment.
View additional VA Program requirements and Rural Housing Program requirements on our site.
Option 3: Lease-To-Own
With a lease-to-own, you essentially lease a home, but make larger payments in order to begin accumulating a down payment. For example, if a house would normally lease for $900, you might lease it for $1,100/month, with $200/month going into a special account. At the end of a specified period (usually 12-36 months), you buy the home using the money in that special account as your down payment. However, if you decide somewhere along the line not to purchase the home, all of the money in the special account then goes to the seller.
Think of this option as renting with a forced savings account. If you can find someone willing to do this, it's not a bad option. However, most people who are selling their homes need their money out of it in order to buy their next home, so finding someone who is willing to lease to you may prove more difficult.
If you'd like to know more about your financing options contact us or apply online
Comments(0)