A Brief Guide to Your Mortgage Options

February 25, 2020
Auricchio Law Offices

According to some reports, in early 2020 the average home price in Chicago is $210,000 (approximately 5% below the national average). What could that mean for buyers?  One answer is that it is an exciting time to invest in real estate! Fortunately for Illinois homebuyers, there are many mortgage options available that make purchasing real estate an even more affordable prospect. Some mortgage options are only available for Illinois residents, while others are administered through national programs. Read on to learn about some of your choices. 

USDA Loans (Section 502 Single Family Housing Guaranteed Loan Program)

To qualify for USDA Loans, your household income has to be within 115% of the median income in your area. The home you want to purchase also needs to be in an eligible area — most eligible areas are rural or suburban. Your down payment with a USDA Loan will be between $0 and 10%, depending on your credit score. This is a national program.

FHA Loans

To qualify for FHA loans, you need a minimum credit score of 500 and a preferable credit score of 580+. With a higher credit score, your down payment can be as low as 3.5%, and if your credit score is lower your down payment will be around 10%. As with USDA loans, this is a national program.

IHDAccess

To qualify for a IHDAccess Forgivable mortgage, you must have a credit score of at least 640. You also have to complete homeownership counseling and meet household income criteria to be eligible. It comes with a $6,000 grant (up to 4% of the purchase price). It can be used for homes within all counties of Illinois. With this program you can use a IHDAccess Forgivable mortgage if you are buying a newly built house.

Who can help me navigate my mortgage options in Illinois?

If you are buying real estate in Illinois, contact Auricchio Law Offices today. We can help you throughout the process, including selecting the mortgage option that is best suited to your situation. We offer every new client a free consultation. To schedule yours, give us a call at (312) 263-0010.

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Auricchio Law Offices

Auricchio Law Offices in Chicago provides a complete range of real estate services. We facilitate residential and commercial real estate transactions, advise and represent condominium associations, and represent property owners in real estate litigation. Whatever your real estate issue, we will work diligently to achieve your goals in a timely and efficient manner.

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