Mortgage in Illinois
Wrigley Field, the Willis Tower, and Navy Pier - these are three iconic destinations in the Windy City. Illinois has a vibrant history that has played an integral part in shaping America. For being a relatively high-impact state, the cost of living in Illinois is more affordable than you might think. The average home price is still under $300,000 . If living near some of the best restaurants, shops, and entertainment excites you, use our Illinois mortgage calculator to see how much you'll pay each month to own a home in The Prairie State.
Illinois Mortgage Calculator: Housing Might Be More Affordable Than You Think!
The Prairie State has three mortgage types that you need to know.
- Illinois conventional mortgage: These are Illinois' most common mortgages. Even though Illinois has some world-class cities, housing is still reasonably affordable, so many of these mortgages will be conforming. That means you can have as little as 3% down (with PMI) and get a mortgage. If you buy a more expensive home, you may need 20% down, a 720 score, and a lower debt-to-income ratio.
- Illinois FHA mortgage: Given that housing costs are relatively low in Illinois, an FHA mortgage often makes sense. Requiring as little as 3.5% down and a credit score of just 580, these loans are a fantastic option if you cannot get a conventional mortgage. You need to pay PMI for the loan's life, but you can always refinance to eliminate it.
- Illinois VA mortgage: If you are a veteran, you can access one of the US's best mortgage products. Indeed, the VA mortgage requires as little as 0% down and no insurance. The only downside is that you'll need a 660 credit score to qualify.
With these loan options in mind, let's see what incentives the state of Illinois offers for homebuyers.
First-Time Homebuyers in Illinois
The Illinois Housing Development Authority offers various homeownership programs to encourage people to buy a home. So, here are the ones you'll need to know!
The Open Doors program offers a flat $6,000 in down payment and closing cost assistance. Also, the loan is forgivable over five years.
Eligibility Criteria: Borrowers must have a minimum credit score of 640 and get certain loan types. Income and purchase price limitations apply. Borrowers must take a homeownership course.
Smart Buy offers a deferred mortgage for up to $5,000 towards closing costs and down payment assistance. It also includes 15% of the purchase price, up to $40,000, in student loan debt forgiveness. The government will pay that directly to the student loans and forgive the amount entirely after three years.
Eligibility Criteria: Must have a minimum credit score of 640. Income and purchase price limitations apply. Borrowers must take educational classes.
This program offers 4% of the purchase price, up to a maximum of $6,000, as a second mortgage, forgivable over ten years.
Eligibility Criteria: Borrowers must meet the same criteria as the other loan types mentioned above.
This program provides 5% of the purchase price, up to a maximum of $7,500, as a deferred second mortgage, due upon the first mortgage's completion.
Eligibility Criteria: Borrowers must meet the same criteria as the other loan types mentioned above.
This program provides 10% of the purchase price, up to a maximum of $10,000 as a repayable second mortgage over ten years at 0% APR.
Eligibility Criteria: Borrowers must meet the same criteria as the other loan types mentioned above.
Illinois Mortgage Calculator: There Are Many Options
If you're looking to move to Illinois, you should know that you have many options. Using this calculator and the information above, you should be able to determine which combination of loan type and assistance program works best for you!
