Buyer Financial Resources

Loan & Mortgage Options

Thinking of buying a home in Decatur, IL? Do you know what your loan and mortgage options are? There are many different options available, and depending on your credit history, income, and personal situation, there is sure to be one that is perfectly suited to help you buy your dream home. Here are some of the most popular loan options offered in Decatur today.


standard loan options
Standard Loan Options

These are the loans most commonly selected and used by standard buyers (those with good credit history and a 20% down payment).

Fixed Rate Loans

The fixed-rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrower a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time.

Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae, and require certain down payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.

Adjustable Rate Loans

With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally speaking, lenders charge a lower initial interest rate for the ARM than for the fixed rate mortgage.

If you are expecting interest rates to decrease in the future, or if you are trying to maximize your purchase power today knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period of time.


specialized loans
Specialized Loan Options

In addition to standard loan options, there are a few specialized loans that are tailored to buyers that don't necessarily meet the "standard" criteria of most buyers. They are designed to help more buyers afford their dream homes.

FHA Loans

The Federal Housing Administration (FHA), offers loans for low-to-moderate-income home buyers. FHA loans have lower down payments, and have relatively easier requirements than conventional fixed-rate mortgages. FHA mortgages have no income restrictions, and even those with lower credit scores may be considered. Past bankruptcy does not necessarily disqualify borrowers from using this program!

VA Loans

In addition, the Department of Veterans Affairs (VA) offers a zero-down mortgage program. To take advantage of this program, borrowers need to be among those listed as veterans and service personnel in the U.S. military. One of the biggest benefits of this program is that it eliminates the need for private mortgage insurance.


local loan options
Local Homebuying Programs

There are often many state and local programs available. These programs offer down-payment assistance and programs for local home ownership. Learn more about these local programs, recommended lenders, and other finance options by contacting us today!


Thinking of Buying a Home in Decatur?

Thinking of buying a home in Decatur, IL and want to know more about your options? Whether you're seeking information about financing, particular neighborhoods or communities in the area, or you just have general homebuying questions, feel free to contact us with all your questions and concerns!

Decatur Real Estate Resources


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