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Guide to Illinois Mortgages
Maybe you are buying your first home in Illinois, or perhaps you're relocating to Illinois from another state. Then again, you may be a long-time Illinois resident who is looking to either refinance your current mortgage or take out a home equity loan for home improvements. Regardless of your situation, it's important that you educate yourself on Illinois home loans before shopping for a home and/or mortgage. This article explains what you will need to know before seeking a home loan in Illinois:
The median price of a home in Illinois is $211,500. Recently, homes in Illinois have been appreciating at rates well above the national average. As a result, income levels in many parts of Illinois are too low to purchase a median-priced home with a conventional loan. Although average interest rates in Illinois are below the national average, Illinois has one of the lowest levels of home affordability in the nation.
In Illinois, before a buyer submits an offer on a home, their real estate agent is required to present them with a completed Real Estate Transfer Disclosure Statement. This document, completed by the seller of the property, requires the seller to name all of the property that will be included in the purchase (refrigerator, stove, alarm system, etc.) and rate certain aspects of the conditions of both the included property and of the house itself. This document requires the seller to disclose any potential problems or hazards that may discourage the buyer from putting an offer in on the home.
Illinois's Civil Code Provision of the Real Estate Act regulates the issuance of variable interest rates for the purchase of real estate. Therefore, borrowers who are issued large mortgage amounts are guaranteed a fixed rate mortgage. Illinois law also prohibits the charging of interest more than one day prior to the recording of the mortgage even if the borrower received the loan prior to that time.
In July of 2002, Illinois law enacted a set of anti-predatory lending laws in order to help protect Illinois homebuyers from predatory lenders. Some of the provisions of this new set of laws include the prohibition of a lender charging points and fees in excess of 6% of the total principal financed amount, the prohibition of a mortgage company issuing a loan to a borrower in an amount that the borrower could not reasonably afford to repay, and the prohibition of the financing of single-premium credit insurance, among others.
If you're buying a home in the state of Illinois, you qualify for both federal and state FHA, USDA, and VA loans. First-time home buyers qualify for Illinois FHA loans with below-market interest rates, and, depending on their eligibility, may also qualify for a loan in order to cover down payment and/or closing costs. Teachers and other professionals who work in an educational capacity may qualify for Illinois's Extra Credit Teacher Home Purchase Program, a down payment assistance loan with forgivable interest.
In addition to FHA loans, the state of Illinois also offers comparable programs to persons with disabilities or persons who live with and care for persons with disabilities. The state also offers several unconventional loans designed to aid homebuyers with the costs of their monthly mortgage payment. For example, Illinois's Interest Only PLUS loan provides qualified homebuyers with a 100% financing 35-year loan that only requires payments toward the accrued interest on the mortgage for the first five years of the loan -- borrowers do not have to pay toward the principal amount borrowed until after the first five years. The individual requirements of each of these loans vary depending on the county in which you are buying a house. Specific requirements can be obtained through the Illinois Housing Finance Agency.
Last Updated: Friday, November 21, 2008
Illinois Real Estate Market View
updated Friday, November 21, 2008
| Housing & Social Facts |
Illinois |
United States |
| Total housing units |
5,144,623 |
n/a |
| Owner-occupied housing units |
69.9% |
66.9% |
| Renter-occupied housing units |
30.1% |
33.1% |
| Vacant housing units |
8.8% |
10.8% |
| Average Home Value |
$183,900 |
$167,500 |
| Average Mortgage Payment |
$1,455.00 |
$1,295.00 |
| Average Rental Payment |
$465 .00 |
$388.00 |
| Total Population |
12,440,351 |
n/a |
| Percentage Male |
49.0% |
49.0% |
| Percentage Female |
51.0% |
51.0% |
| Median Age |
35.6 |
36.4 |
| Under 5 years |
7.2% |
7.0% |
| 18 years and over |
74.0% |
74.6% |
| 65 years and over |
11.5% |
12.1% |
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1 Year Market Value Change for Illinois |
| 1yr | 5yr | 10yr |
 |
|
Popular Illinois Cities and Towns
| Location |
Population |
Median Family Income (2005) |
| Arlington Heights |
76,031 |
$67,807 |
| Aurora |
142,990 |
$54,861 |
| Bloomington |
64,808 |
$46,496 |
| Bolingbrook |
56,321 |
$67,852 |
| Champaign |
67,518 |
$32,795 |
| Chicago |
2,896,016 |
$38,625 |
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| Pro Mortgage Group |
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The American dream; home ownership! More people are taking advantage of today's low rates to buy their first home, or their dream home. Patriot Mortgage of Illinois is on your side! We help find the best mortgage for you so you can concentrate on getting ready to move in! Before you even start home shopping, get pre-qualified by one of our experienced mortgage professionals. You'll have the clout of a cash buyer. You will know how much you can afford. And be well on your way to the mortgage program that's right for you as soon as you make the offer! If you own a home and are just looking to refinance, get a second mortgage, line of credit, debt consolidation or cash out for any reason, you have come to the right place! There are almost as many loan programs as there are home owners. Patriot Mortgage of IL will help find you the right one. You can pay down your balance faster, eliminate PMI, consolidate high-interest revolving debt, convert to a fixed rate or cash a check to use toward your dream vacation, home improvements and college tuition; anything you can think of! Contact an experienced mortgage professional who can help you on your way to the American Dream of owning a home! Remember, Patriot Mortgage Company and our experienced loan professionals work hard to help you build the life you've always dreamed of for you and your family. Patriot Mortgage Company
29W170 Butterfield Road, Suite 202
Warrenville, IL 60555
630-393-3300 - Office
800-934-2012 - Toll Free
630-393-4997 - Fax
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| Clements Banking Group |
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GSF Mortgage Corporation is a full service mortgage company dedicated to customer service before, during and after the transaction. We realize that home financing is a dynamic undertaking. Motivation and capabilities differ from customer to customer and we believe that we can connect to our customer's specific goals and needs and assist them in accomplishing their financing goals. Our company slogan is "We value your business and will earn your referrals". We are committed to you and your needs as a client and believe that through our unmatched, superior service and expertise you will tell everyone you know about us. You will be convinced that we will give the same level of service to your friends, family, and co-workers. You see, a referral is the highest form of flattery we can achieve in this business. Beyond company slogans and marketing, people are what drive our business and we are committed to building lasting relationships with the people who choose GSF Mortgage. We realize that there are thousands of mortgage companies out there to choose from. We also believe that no one else will provide the high level of service that we consistently provide to our clients for a lifetime. We hope to talk with you soon, not only to begin the process of doing business, but the process of building a lasting relationship. Clements Banking Group
GSF Mortgage Corporation
Aurora, Illinois 60504
630.806.7060 - Phone
630.723.5233 - Fax
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| State Street Mortgage |
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State Street Mortgage is a local Team of Mortgage Specialists committed to working on behalf of area borrowers. Our professionals literally search Wholesale Mortgage Lenders including Local and National Banks for the best possible mortgage program based on the needs of the individual borrower.
We understand from experience that every borrower is different. State Street Mortgage was founded for this very reason. Our mortgage professionals offer an unlimited variety of products ensuring our committed customers acquire the best possible financing for their specific needs with options such as purchases, refinances, debt consolidations, equity lines of credit, reverse mortgages, bi-weekly accelerated payment options and more! State Street Mortgage strives to make the process of securing the most advantageous mortgage simple and straightforward. We really do represent you the borrower! Please feel free to Contact the mortgage specialists of State Street Mortgage directly at any time during or after your visit to find out more about the products and services that are specifically designed for your specific type of situation. We simply need to ask you some quick questions over the phone to get the process started. "We look forward to working for you!" -Team State Street Mortgage State Street Mortgage
(866) 203-9850 - Phone
(815) 899-7647 - Fax
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