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Buckeye Mortgage of Illinois FHA/VA Loan Icon

Loan Options

Discovering the perfect loan to finance your dream home has never been easier. At Buckeye Mortgage, we understand that every homebuyer is unique, and so are their financial needs. Our user-friendly platform streamlines the loan search process, offering a variety of tailored options to suit your specific requirements. Whether you're a first-time buyer or looking to refinance, our comprehensive loan offerings empower you to make informed decisions, ensuring a seamless and personalized experience on your journey to homeownership.

Common Types

FHA Loans

  • Fixed Rate Loans

  • Adjustable Rate Mortgages

  • FHA 203 Loans 

  • FHA Jumbo Loan

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FHA stands for the Federal Housing Administration. An FHA loan is what allows buyers who can’t come up with a hefty down payment and/or have “lower” credit scores to qualify for a mortgage loan. The basic criteria for an FHA loan are a 3.5% minimum down payment and a credit score of 580 points or higher. 

Only certain lenders can give FHA-insured loans so be sure to check with yours! Having a loan backed by the government (like the FHA loan) is popular for first-time buyers as they are oftentimes easier to get than a conventional loan. Why? Easy — the criteria listed above open the home-buying pool to a lot more people than only those who can put down 10 or 20 percent for a down payment. 

There are specific types of FHA loans that your lender can go over with you if you decide an FHA loan is right for you. While deciding what type of FHA loan works for you, it’s also important to note certain limits on FHA loans, namely how high of price they are willing to cover. 

And more…so let’s talk about how to get you into a home!

Common Types

VA Loans

  • VA Purchase Loan

  • VA Cash-Out Refinance

  • VA Streamline Refinance

  • Loans that give the ability to renovate

 

VA Loans are reserved for veterans, active-duty military, veterans, and spouses! The U.S. The Department of Veteran Affairs backs VA loans financially. VA loans are very popular because they require no down payment and have low-interest rates — truly a great deal. Additionally, VA loans have lower closing costs which can save buyers a lot of money! 

VA Loans are typically offered in 15-year loans or longer because the goal is to offer those who are serving or have served our country, long-term stability. While the US Department of Veteran Affairs has no required down payment or credit score — most lenders who work with VA loans do require a credit score in the mid-500s or higher. If this doesn’t apply to you, don’t worry — there are always ways to figure it out! It’s worth noting that on average with a 30-year VA purchase loan, the interest rates are lower than non-VA loans.

There aren’t a lot of disadvantages when it comes to these loans. One however is that while VA loans don’t require closing costs, there are funding fees that account for the cost of foreclosure if the buyer fails to make their mortgage payments. Also, properties must be in decent condition to qualify for a VA loan. 

If you qualify for a VA loan program, thank you for your service and we can’t wait to work with you to see what best suits your needs!

Jumbo Loans

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Paying a mortgage every month can be hard, or impossible, even for buyers with the best-laid plans. Life happens, the market changes, and sometimes homeowners simply aren’t able to make ends meet and end up close to or completely “upside down” on their mortgage — owing more than the home is worth. 

Jumbo loans are exactly what they sound like — large loans for expensive homes. They differ by amount from state to state and are not secured by Freddie Mac or Fannie Mae. In most counties/states, homes over $548,250 require a jumbo loan (this of course differs in areas of higher-cost homes). For reference, if you hear the term non-conforming loan or non-conforming conventional loan — it’s the same as a jumbo loan. 
To qualify for a jumbo loan, buyers must have a low debt-to-income ratio (under 43% but aim for 36%) and a very high credit score (over 700). These loans also require all of the other loan requirements like proof of income and assets to cover payments, paystubs, etc. Sometimes, buyers must prove they have enough cash on hand to cover a year of mortgage payments. 

Down payments required for a jumbo loan used to be closer to 30% of the home price. Now, they are usually within the range of 10-15 percent of the home price but closer to 20% is always better. While APR (annual percentage rates) used to be higher for jumbo loans, recently they’re similar to the APR rates of conventional loans. Closing costs may be higher with a jumbo loan because there is more money on the table in the first place. 
If you’re in a position to purchase a high-dollar home and have the assets to do so — a jumbo loan is probably the right route for you and your lender can assure you of this. 

There are more loan types out there and Part 2 of this series will be coming soon, so stay tuned! If you need more information sooner — give us a call and we’ll get you set up!

FHA 203K Loans

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Have you ever wondered if you could get a loan for a fixer-upper without having an immense amount of capital? There’s another type of FHA loan out there for you! A 203k loan is exactly that and allows buyers to roll the costs of the renovation into your mortgage! So, buyers can either refinance or freshly purchase a home that requires larger renovations and get a loan that covers both! Before you get too excited though — it’s important to note that more luxurious renovations like a pool, for example, are not covered under a 203k loan. 

If a home that you’re considering buying, or maybe currently own, needs a new bathroom or laundry room, etc. but the price of the home plus the renovations is out of reach — that’s where a 203k loan steps in. Because this loan is still an FHA loan, down payment requirements can be minimal and therefore, doable. 

There are two main types of 203k loans — limited/streamlined and standard.
A limited/streamlined loan offers up to 35,000 for repairs and renovations as long as they are not large structural repairs.
A standard loan does allow for major structural repairs, the repairs must be at least 5,000 dollars, and buyers must work with a HUD consultant during the renovation process.
Sound too good to be true? Here’s how it works! In most cases, the loan functions in one of two ways:

 

  1. The loan provides breathing room or funds up to six months or so of mortgage payments so you can live elsewhere while you’re remodeling, but still pay the mortgage payments on the new home. Large renovations and where to live are the biggest issues homeowners face and this provision solves that! 

 

​2. Up to 20% contingency reserve just in case the estimated cost for revision is low (another common issue)


If a 203k loan sounds like it solves your problems — sit down with your lender and let’s talk about the details!

Do You Qualify?

For A USDA Loan

  • Purchasing a home in a rural area 

  • Low to moderate income 

  • US Citizenship or Permanent Residency

  • Lower debt-to-income ratios or a credit score of about 680

  • A steady job

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USDA Loans are for those who are purchasing a home or property in a rural area. These loans can offer up to 100% financing but depend, of course, on the buyer and the home in question! 

USDA loans are backed by the U.S. Department of Agriculture. These loans are designed for those who live in rural areas, often with livestock (but not required), and who make a living wage on the low to average side with credit scores in the mid-six-hundreds or higher! Grant money and gifted money can also apply towards buying a home with a USDA loan, which opens even more doors. 

97% of the United States is USDA eligible so don’t be discouraged thinking your desired area may not qualify. Rates and loan amounts also change based on where you’re looking to buy as they fluctuate with the market one is looking at. 

There are multiple types of loans buyers can apply for under a USDA loan and all fall under three main categories:
Home Improvement Loans and Grants: these can be combined and offer buyers financial help up to 27,500 to upgrade or repair their homes in rural areas. 

Direct loans: Geared towards low-income borrowers, these loans have interest rates as low as 1%.


Loan guarantees: The most standard option. The USDA backs loans given by lenders with low-interest rates and low to no down payments.

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