USDA Direct Loans (also known as USDA Section 502 Direct Loans) are a mortgage program that assists low- and very-low income individuals buy decent, safe, and clean housing in rural areas. This is done through payment assistance which increases a borrower’s ability to repay. That payment assistance can be best described a subsidy which lowers the mortgage payment for short periods. The amount of assistance largely depends on the adjusted family income. USDA Direct Home Loans in Illinois don’t work in the same manner as USDA Guaranteed Loans in Illinois. The USDA Guaranteed Loan Program is a more popular option and can be used for a wider range of applicant incomes.Illinois USDA Direct Loans are 100% financing mortgages. Unlike Guaranteed USDA Loans, applicants must have low or very low income to qualify for Direct Loans.

Illinois USDA Direct Loan Requirements

USDA Direct Loans are a mortgage program available for low-income individuals to buy homes in rural areas. USDA defines low- or very low income as anything between 50% and 80% of the Area Median (AMI). The statewide median income was recently reported as $65,886 in Illinois, but this number may differ from one county to the next. For home buyers that meet those requirements, USDA Loans are a zero-down mortgage, meaning there’s no down payment. To be eligible, applicants must also meet the following requirements:

  • You don’t presently have decent, clean, sanitary and safe housing.
  • You can’t get another mortgage from a different source with terms and conditions reasonably expected to be met.
  • The subject property must be your primary residence.
  • You must be legally eligible for a mortgage.
  • You must meet citizenship requirements or non-citizen requirements.
  • You must be eligible for participation in federal programs.

In addition, the subject property must meet the following requirements.

  • It must be moderately-sized for that area.
  • The home cause can’t exceed the area’s applicable loan limit.
  • The home can’t be designed for the production of income.

How much can I borrow with a USDA Direct Mortgage?

Up to the maximum loan limit, the amount of money that an applicant’s eligible for depends on their ability to pay it back. When evaluating home loan applicants for Direct home loans, Rural Development considers income, assets, debt, and payment assistance. And remember, you can’t borrow more than the local USDA loan limit for the county where the home is located, no matter what your repayment ability may be.

What areas in IL are eligible for USDA Direct Loans?

The subject property must be in an approved rural area. You can search specific addresses in Illinois for USDA eligibility here.

Are there other zero down mortgage options or low down payment mortgages in Illinois?

Yes, other low down payment mortgage options, and no down payment mortgage options are available in Illinois besides USDA Direct Loans. You can start by looking into USDA Guaranteed Loans in Illinois, FHA Loan in Illinois, or if you’re a veteran or qualified family member, VA Loans in Illinois. You may also want to research if any helpful Illinois down payment assistance programs may be available.

Search all USDA Guaranteed Loan Limits (Direct and Guaranteed Loans)
Learn about today’s USDA Loan Requirements

Direct Loans aren’t as popular as USDA Guaranteed Loans, which accommodate a wider range of borrower qualifications. The USDA sets specific maximum mortgage limits for Direct Loans in Illinois. Search home loan limits for your area below.

Illinois USDA Direct Loan Limits

Area
Direct Loan Limit
Adams $251,862
Alexander $251,862
Bond $251,862
Boone $251,862
Brown $251,862
Bureau $251,862
Calhoun $251,862
Carroll $251,862
Cass $251,862
Champaign $251,862
Christian $251,862
Clark $251,862
Clay $251,862
Clinton $251,862
Coles $251,862
Crawford $251,862
Cumberland $251,862
De Witt $251,862
DeKalb $294,400
Douglas $251,862
Edgar $251,862
Edwards $251,862
Effingham $251,862
Fayette $251,862
Ford $251,862
Franklin $251,862
Fulton $251,862
Gallatin $251,862
Greene $251,862
Grundy $294,400
Hamilton $251,862
Hancock $251,862
Hardin $251,862
Henderson $251,862
Henry $251,862
Iroquois $251,862
Jackson $251,862
Jasper $251,862
Jefferson $251,862
Jersey $251,862
Jo Daviess $251,862
Johnson $251,862
Kane $294,400
Kankakee $251,862
Kendall $294,400
Knox $251,862
LaSalle $251,862
Lawrence $251,862
Lee $251,862
Livingston $251,862
Logan $251,862
Macon $251,862
Macoupin $251,862
Madison $251,862
Marion $251,862
Marshall $251,862
Mason $251,862
Massac $251,862
McDonough $251,862
McHenry $294,400
McLean $251,862
Menard $251,862
Mercer $251,862
Monroe $251,862
Montgomery $251,862
Morgan $251,862
Moultrie $251,862
Ogle $251,862
Peoria $251,862
Perry $251,862
Piatt $251,862
Pike $251,862
Pope $251,862
Pulaski $251,862
Putnam $251,862
Randolph $251,862
Richland $251,862
Rock Island $251,862
Saline $251,862
Sangamon $251,862
Schuyler $251,862
Scott $251,862
Shelby $251,862
St. Clair $251,862
Stark $251,862
Stephenson $251,862
Tazewell $251,862
Union $251,862
Vermilion $251,862
Wabash $251,862
Warren $251,862
Washington $251,862
Wayne $251,862
White $251,862
Whiteside $251,862
Will $294,400
Williamson $251,862
Winnebago $271,400
Woodford $251,862

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

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