Make the Smart Move to McHenry County
Are you looking to purchase your first home, but feel a bit apprehensive as to whether you can afford it? This blog breaks down what you need to know when moving to McHenry County.
The Illinois Housing Development Authority (IHDA) understands peoples’ concerns. Therefore, they have a network of trusted partners to help every step of the way. One program the IHDA has implemented is the SmartMove program which is a 30-year, fixed mortgage rate. This comes with built-in closing cost assistance and affordable interest
Originally, the program was for low to medium-income families to help make owning a dream home a reality. The loan numbers are figured out using the loan-to-value ratio (LTV), by evaluating the ratio of the cost of the loan compared to property cost. The best part is that the IHDA makes options for mortgage lenders very accessible. Within the northern Chicago region, there are a variety of featured lenders near McHenry County. These include Wintrust Mortgage, Loan Depot and First Centennial Mortgage, to name a few. Find a complete list of lenders within the northern Chicago region here.
What kind of loans are available?
The different kinds of loans available are FHA, USDA, VA, or conventional. These types of loans are required for first time homebuyers unless exempted under special circumstances. The borrower’s credit score needs to be 620 or higher per Edvisors. According to the Consumer Financial Protection Bureau a borrower should not have a debt ratio of more than 45 percent. Plus, all borrowers are expected to pay 1 percent or $1,000 of their own funds, whichever is the greater number. The last requirement is a homeownership counseling session to promote knowledge and responsibility among borrowers.
However, there are limitations to these loans. According to a McHenry County IHDA 2019 report, the income limit for a loan taken without a Mortgage Credit Certificate (MCC) was $106,920 no matter household size. The income limit for a loan taken out with a MCC is $89,100 for a household with 1-2 people, and $102,465 for a household with 3 or more people. The purchase price limit is $331,205.40 for a one unit property and $423,997.20 for two units. Within McHenry County, a low income constitutes four people in the family with a total median income of $72,800; a very low income constitutes four people in the family with a total median income of $45,500; and an extremely low income constitutes four or more people in the family with a total median income of $27,300.
What Gerstad Builders has to offer.
Gerstad Builders offers affordable new homes at two of our communities in McHenry County: Liberty Trails where prices range from $277,490 to $394,290, and The Trails of Pheasant Ridge where prices range from $233,190 to $318,490. Not to mention, McHenry County is a wonderful place to live. One never has to look far for local fun and events for the whole family since McHenry County never misses a reason to celebrate: Woodstock hosts a Groundhog Day celebration, there is a well-known and family friendly St. Patrick’s Day celebration, and of course, events over Halloween and the holiday season. Not only is McHenry County full of entertainment for its community members, but schools in McHenry County have an average ranking in the top 10% of Illinois public schools. The City of McHenry itself is an equal opportunity employer.