The Section 502 Direct Loan Program, also known as USDA Direct Loans, is a program that aids low and very-low-income individuals purchase decent healthy, safe and clean housing in eligible rural areas. That’s accomplished though offering payment assistance which boosts a borrower’s capacity to repay. This payment assistance can be described as a form of subsidy that lowers the mortgage repayment for a brief period, and the amount of assistance is contingent upon the adjusted family income. USDA Section 502 Direct Loans in Illinois aren’t the same thing as USDA Section 502 Guaranteed Loans in Illinois. The USDA Guaranteed Loan Program is more popular and accommodates a wider range of applicant incomes.

Can I get a USDA Direct Loan in Illinois?

USDA Loan RequirementsUSDA Direct Loans in Illinois are low income loans that can be used to purchase homes in rural areas. To qualify for Direct Loans, applicants must have low or very low income, which is defined by the USDA as 50% to 80% of the Area Median Income (AMI). Like other rural housing loan programs, USDA Direct Loans are a mortgage with no down payment. The median income for the entire state of IL is $65,886, although that figure may vary from county to county. The maximum yearly income limits for Illinois USDA Direct Loan approval are listed below. Other than meeting Illinois USDA Direct Loan income limits, applicants must adhere to the following criteria to be eligible:

  • You have no decent clean, safe, and sanitary housing presently.
  • You can’t be able to get a mortgage from another source with terms and conditions that could reasonably expected to be met.
  • You must use this property for your primary residence.
  • You must possess the legal capacity to be able to contract a loan
  • You must meet citizenship or eligible noncitizen requirements.
  • You can’t be barred or suspended from participation in federal programs.

Additionally, the subject property must meet the following conditions:

  • Be a modestly sized home for that area.
  • Market value can’t be in excess of the areas applicable loan limit.
  • Can’t be designed for the production of income.

What areas in IL are eligible for USDA Direct Loans?

The property in question must be in an approved rural area. USDA Rural Development provides a webpage where you can search specific addresses in IL here.

How much can I borrow with a USDA Direct Home Loan?

The size of the mortgage that an applicant’s eligible for depends on their ability to repay. Rural Development takes into account income, assets, debt, and payment assistance when weighing eligibility for USDA Direct home loans. No matter what the repayment ability is, you can’t borrow more than the local loan limit for the county where the home is located.

Are there other mortgage options with low down payment or no down payment in Illinois?

Yes, there may be other low down payment mortgage options, and no down payment mortgage options in Illinois besides USDA Direct Loans. You can begin by researching Illinois USDA Guaranteed Loans, Illinois FHA Loans, and Illinois VA Loans if you’re a veteran in IL or qualified family member. You may also want to look into helpful programs for down payment assistance in Illinois.

Illinois USDA Direct Loan Maximum Income Limits

1 Person
2 Person
3 Person
4 Person
5 Person
Adams County, IL $53,050$53,050 $53,050$53,050 $70,050
Alexander County, IL SEA $51,700$51,700 $51,700$51,700 $68,250
Bloomington, IL HUD Metro FMR Area $73,300$73,300 $73,300$73,300 $96,750
Bond County, IL HUD Metro FMR Area $56,000$56,000 $56,000$56,000 $73,900
Brown County, IL $58,800$58,800 $58,800$58,800 $77,600
Bureau County, IL $55,350$55,350 $55,350$55,350 $73,050
Carroll County, IL $53,050$53,050 $53,050$53,050 $70,050
Cass County, IL $53,050$53,050 $53,050$53,050 $70,050
Champaign-Urbana, IL MSA $63,600$63,600 $63,600$63,600 $83,950
Chicago-Joliet-Naperville, IL HUD Metro FMR Area $71,300$71,300 $71,300$71,300 $94,100
Christian County, IL $53,050$53,050 $53,050$53,050 $70,050
Clark County, IL $53,050$53,050 $53,050$53,050 $70,050
Clay County, IL $53,050$53,050 $53,050$53,050 $70,050
Coles County, IL $53,050$53,050 $53,050$53,050 $70,050
Crawford County, IL $55,350$55,350 $55,350$55,350 $73,050
Cumberland County, IL $53,050$53,050 $53,050$53,050 $70,050
Danville, IL MSA $53,050$53,050 $53,050$53,050 $70,050
Davenport-Moline-Rock Island, IA-IL MSA $58,150$58,150 $58,150$58,150 $76,750
De Witt County, IL HUD Metro FMR Area $59,050$59,050 $59,050$59,050 $77,950
Decatur, IL MSA $53,500$53,500 $53,500$53,500 $70,600
DeKalb County, IL HUD Metro FMR Area $61,900$61,900 $61,900$61,900 $81,700
Douglas County, IL $56,400$56,400 $56,400$56,400 $74,450
Edgar County, IL $53,050$53,050 $53,050$53,050 $70,050
Edwards County, IL $53,050$53,050 $53,050$53,050 $70,050
Effingham County, IL $57,900$57,900 $57,900$57,900 $76,450
Fayette County, IL $53,050$53,050 $53,050$53,050 $70,050
Franklin County, IL $53,050$53,050 $53,050$53,050 $70,050
Fulton County, IL $53,050$53,050 $53,050$53,050 $70,050
Gallatin County, IL $53,050$53,050 $53,050$53,050 $70,050
Greene County, IL $53,050$53,050 $53,050$53,050 $70,050
Grundy County, IL HUD Metro FMR Area $68,250$68,250 $68,250$68,250 $90,100
Hamilton County, IL $53,050$53,050 $53,050$53,050 $70,050
Hancock County, IL $53,050$53,050 $53,050$53,050 $70,050
Hardin County, IL $53,050$53,050 $53,050$53,050 $70,050
Henderson County, IL $53,050$53,050 $53,050$53,050 $70,050
Iroquois County, IL $53,050$53,050 $53,050$53,050 $70,050
Jackson County, IL HUD Metro FMR Area $53,050$53,050 $53,050$53,050 $70,050
Jasper County, IL $59,300$59,300 $59,300$59,300 $78,300
Jefferson County, IL $53,050$53,050 $53,050$53,050 $70,050
Jo Daviess County, IL $60,500$60,500 $60,500$60,500 $79,850
Johnson County, IL $53,050$53,050 $53,050$53,050 $70,050
Kankakee, IL MSA $55,350$55,350 $55,350$55,350 $73,050
Kendall County, IL HUD Metro FMR Area $75,500$75,500 $75,500$75,500 $99,650
Knox County, IL $53,050$53,050 $53,050$53,050 $70,050
La Salle County, IL $60,000$60,000 $60,000$60,000 $79,200
Lawrence County, IL $53,050$53,050 $53,050$53,050 $70,050
Lee County, IL $56,700$56,700 $56,700$56,700 $74,850
Livingston County, IL $58,800$58,800 $58,800$58,800 $77,600
Logan County, IL $55,050$55,050 $55,050$55,050 $72,650
Macoupin County, IL HUD Metro FMR Area $53,750$53,750 $53,750$53,750 $70,950
Marion County, IL $53,050$53,050 $53,050$53,050 $70,050
Mason County, IL $53,050$53,050 $53,050$53,050 $70,050
Massac County, IL $53,050$53,050 $53,050$53,050 $70,050
McDonough County, IL $55,350$55,350 $55,350$55,350 $73,050
Montgomery County, IL $53,050$53,050 $53,050$53,050 $70,050
Morgan County, IL $53,050$53,050 $53,050$53,050 $70,050
Moultrie County, IL $53,050$53,050 $53,050$53,050 $70,050
Ogle County, IL $58,700$58,700 $58,700$58,700 $77,500
Peoria, IL MSA $61,500$61,500 $61,500$61,500 $81,200
Perry County, IL $53,050$53,050 $53,050$53,050 $70,050
Pike County, IL $53,050$53,050 $53,050$53,050 $70,050
Pope County, IL $53,050$53,050 $53,050$53,050 $70,050
Pulaski County, IL $53,050$53,050 $53,050$53,050 $70,050
Putnam County, IL $67,300$67,300 $67,300$67,300 $88,850
Randolph County, IL $54,300$54,300 $54,300$54,300 $71,700
Richland County, IL $53,050$53,050 $53,050$53,050 $70,050
Rockford, IL MSA $53,050$53,050 $53,050$53,050 $70,050
Saline County, IL $53,050$53,050 $53,050$53,050 $70,050
Schuyler County, IL $53,050$53,050 $53,050$53,050 $70,050
Scott County, IL $53,050$53,050 $53,050$53,050 $70,050
Shelby County, IL $53,050$53,050 $53,050$53,050 $70,050
Springfield, IL MSA $62,800$62,800 $62,800$62,800 $82,900
St. Louis, MO-IL HUD Metro FMR Area $65,050$65,050 $65,050$65,050 $85,850
Stephenson County, IL $53,050$53,050 $53,050$53,050 $70,050
Union County, IL $53,050$53,050 $53,050$53,050 $70,050
Wabash County, IL $53,050$53,050 $53,050$53,050 $70,050
Warren County, IL $53,050$53,050 $53,050$53,050 $70,050
Washington County, IL $58,650$58,650 $58,650$58,650 $77,400
Wayne County, IL $53,050$53,050 $53,050$53,050 $70,050
White County, IL $53,050$53,050 $53,050$53,050 $70,050
Whiteside County, IL $53,050$53,050 $53,050$53,050 $70,050
Williamson County, IL HUD Metro FMR Area $55,600$55,600 $55,600$55,600 $73,400

More USDA Loan Resources

USDA Direct Loan Income Limits (Low Income)
USDA Direct Loan Limits (Low Income)

All USDA Loan Limits
All USDA Loan Income Limits
USDA Loan Requirements
USDA Loan Programs
USDA Loan Calculator

More USDA Direct Loan Limits

Maximum Loan Amounts
Alabama USDA Direct Loan Limits

Alaska USDA Direct Loan Limits
Arizona USDA Direct Loan Limits
Arkansas USDA Direct Loan Limits
California USDA Direct Loan Limits
Colorado USDA Direct Loan Limits
Connecticut USDA Direct Loan Limits
Delaware USDA Direct Loan Limits
Florida USDA Direct Loan Limits
Georgia USDA Direct Loan Limits
Hawaii USDA Direct Loan Limits
Illinois USDA Direct Loan Limits
Idaho USDA Direct Loan Limits
Indiana USDA Direct Loan Limits
Iowa USDA Direct Loan Limits
Kansas USDA Direct Loan Limits
Kentucky USDA Direct Loan Limits
Louisiana USDA Direct Loan Limits
Maine USDA Direct Loan Limits
Maryland USDA Direct Loan Limits
Massachusetts USDA Direct Loan Limits
Michigan USDA Direct Loan Limits
Minnesota USDA Direct Loan Limits
Mississippi USDA Direct Loan Limits
Missouri USDA Direct Loan Limits
Montana USDA Direct Loan Limits
Nebraska USDA Direct Loan Limits
Nevada USDA Direct Loan Limits
New Hampshire USDA Direct Loan Limits
New Jersey USDA Direct Loan Limits
New Mexico USDA Direct Loan Limits
New York USDA Direct Loan Limits
North Carolina USDA Direct Loan Limits
North Dakota USDA Direct Loan Limits
Ohio USDA Direct Loan Limits
Oklahoma USDA Direct Loan Limits
Oregon USDA Direct Loan Limits
Pennsylvania USDA Direct Loan Limits
Rhode Island USDA Direct Loan Limits
South Carolina USDA Direct Loan Limits
South Dakota USDA Direct Loan Limits
Tennessee USDA Direct Loan Limits
Texas USDA Direct Loan Limits
Utah USDA Direct Loan Limits
Vermont USDA Direct Loan Limits
Virginia USDA Direct Loan Limits
Washington USDA Direct Loan Limits
West Virginia USDA Direct Loan Limits
Wisconsin USDA Direct Loan Limits
Wyoming USDA Direct Loan Limits
Maximum Applicant Income
Alabama USDA Direct Income Limits

Alaska USDA Direct Income Limits
Arizona USDA Direct Income Limits
Arkansas USDA Direct Income Limits
California USDA Direct Income Limits
Colorado USDA Direct Income Limits
Connecticut USDA Direct Income Limits
Delaware USDA Direct Income Limits
Florida USDA Direct Income Limits
Georgia USDA Direct Income Limits
Hawaii USDA Direct Income Limits
Illinois USDA Direct Income Limits
Idaho USDA Direct Income Limits
Indiana USDA Direct Income Limits
Iowa USDA Direct Income Limits
Kansas USDA Direct Income Limits
Kentucky USDA Direct Income Limits
Louisiana USDA Direct Income Limits
Maine USDA Direct Income Limits
Maryland USDA Direct Income Limits
Massachusetts Direct Income Limits
Michigan USDA Direct Income Limits
Minnesota USDA Direct Income Limits
Mississippi USDA Direct Income Limits
Missouri USDA Direct Income Limits
Montana USDA Direct Income Limits
Nebraska USDA Direct Income Limits
Nevada USDA Direct Income Limits
New Hampshire Direct Income Limits
New Jersey USDA Direct Income Limits
New Mexico USDA Direct Income Limits
New York USDA Direct Income Limits
North Carolina Direct Income Limits
North Dakota USDA Direct Income Limits
Ohio USDA Direct Income Limits
Oklahoma USDA Direct Income Limits
Oregon USDA Direct Income Limits
Pennsylvania USDA Direct Income Limits
Rhode Island USDA Direct Income Limits
South Carolina Direct Income Limits
South Dakota USDA Direct Income Limits
Tennessee USDA Direct Income Limits
Texas USDA Direct Income Limits
Utah USDA Direct Income Limits
Vermont USDA Direct Income Limits
Virginia USDA Direct Income Limits
Washington USDA Direct Income Limits
West Virginia USDA Direct Income Limits
Wisconsin USDA Direct Income Limits
Wyoming USDA Direct Income Limits


Get Your Rate Quote
Refinance     Purchase

As seen in:
CBS Moneywatch CBS News Yahoo News US News AP
Secure EHL