No and low down payment mortgage in Illinois: FHA, VA and USDA
It wasn't that long ago that just about anyone could obtain a Illinois mortgage until we reaped the consequences of easy credit market. Now the bar is so high that obtaining a conventional mortgage is a nearly impossible with less than perfect credit. Even with 20% down, if your middle credit score (middle of three) is below 740, you will not receive the best interest rate available.
Now, with government sponsored programs, such as FHA, VA and USDA Rural Housing, you can still obtain a Illinois home loan with a low or no down payment.
Illinois low or no money down programs:
Illinois FHA:
Up until late 2008 you could get an FHA loan with no down payment but due to the overwhelming popularity, the program has changed more in the last year, than it has in the last 30. Even so, FHA is a great program and still only requires a 3.5% down payment. Closing costs and prepaid items, such as homeowners insurance and tax escrows, can be paid for by the seller if it is written in the initial offer to purchase. The snag, there are loan amount limits. View Illinois's FHA loan limits on our website. You can also read other FHA program requirements and view our current FHA mortgage rates on our site www.MadisonMortgageguys.com.
Illinois VA:
For military veterans and current active duty members, this program is for you. The VA program requires no money down but closing costs and prepaid items will have to be paid our of pocket, unless you get a seller credit to pay for them. You can view VA program requirements and current VA mortgage rates on our website.
Once you obtain a VA loan, if refinancing makes sense to do, the VA streamline refinance program requires no appraisal and closing costs are less with a rate and term refinance. A VA cash out refinance will require a new appraisal.
The VA even has a jumbo VA program for loan amounts over the conventional loan limits. However, the VA jumbo program does require a down payment.
Illinois USDA:
The USDA rural housing program is by far one of my favorites. It also has the most restrictions. The first being that you must fall within USDA's income limits for the area you wish to purchase. You can view Illinois's USDA's income limits on our site. The second hurdle is USDA's eligible areas. There are pockets throughout Illinois where USDA will not let you use their loan program. Mostly larger cities such as Chicago or Cook County as a whole. You can view ineligible USDA areas by clicking on the county where you plan to purchase. If the county is un-clickable, then the entire county is eligible.
The reason this program is my favorite, is that there is no down payment required. If the house appraises for more than the purchase price, you can also roll in closing costs and prepaid items into the loan, up to 100% of the appraised value! There is no other program that allows you to do that. You can view detailed USDA program requirements and current USDA mortgage rates on our site.
To prequalify for an FHA, VA or USDA mortgage please contact me below:
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