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FIRST TIME HOME BUYER RESOURCES

At Worthington Homes, our goal is to build affordable housing for everyone.  Creating a path to first-time home ownership is an essential part of the American Dream. We work with first-time home buyers daily to help them take the necessary steps to create a home and legacy for their family. 

A SIMPLE PATH TO HOME OWNERSHIP

1.

Home Affordability

 Determine your home affordability in

the real estate market of your choice.

Determine Gross Monthly Income (GMI).

Here’s the math:

$30 per hour x 40 hours = $1,200 per week

$1,200 x 52 weeks = $62,400 annually

$62,400 divided by 12 months = $5,200 GMI

 

50% of the GMI will be Monthly Maximum Allowable Debt (MMAD)        $5,200 x 50% = $2,600 (MMAD)

2.

Get Pre-Qualified

If you choose to use our affiliate loan officers can help you determine your spending power and pre-qualify you for a loan.

3.

Shop the Market

Determine your wants and needs in a new home. Walk model homes, research neighborhoods, and compare home values.

4.

Speak To our Realtor Montana

Speak to a realtor to begin the search for your dream home.

TAKE THE HOME OWNERSHIP QUIZ

You may qualify for assistance purchasing your first home.

USDA Rural Development Loan

Our townhome development in Corland, Illinois qualifies for the USDA rural development down payment assistance program.

What does this program do? Also known as the Section 502 Direct Loan Program, this program assists low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income. Who may apply for this program A number of factors are considered when determining an applicant’s eligibility for Single Family Direct Home Loans. At a minimum, applicants interested in obtaining a direct loan must have an adjusted income that is at or below the applicable low-income limit for the area where they wish to buy a house and they must demonstrate a willingness and ability to repay debt. Applicants must: Be without decent, safe and sanitary housing Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet Agree to occupy the property as your primary residence Have the legal capacity to incur a loan obligation Meet citizenship or eligible noncitizen requirements Not be suspended or debarred from participation in federal programs Properties financed with direct loan funds must: Not have market value in excess of the applicable area loan limit Not be designed for income producing activities Borrowers are required to repay all or a portion of the payment subsidy received over the life of the loan when the title to the property transfers or the borrower is no longer living in the dwelling. Applicants must meet income eligibility for a direct loan. Please select your state from the dropdown menu above. What is an eligible rural area? Utilizing the USDA Eligibility Site you can enter a specific address for determination or just search the map to review general eligible areas. How may funds be used? Loan funds may be used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities. How much may I borrow? Using the Single Family Housing Direct Self- Assessment tool, potential applicants may enter information online to determine if the Section 502 Direct Loan Program is a good fit for them prior to applying. The tool will provide a preliminary review after a potential applicant enters information on their general household composition, monthly income, monthly debts, property location, estimated property taxes, and estimated hazard insurance. Potential applicants are welcome to submit a complete application for an official determination by USDA Rural Development (RD) regardless of the self-assessment results. Upon receipt of a complete application, RD will determine the applicant’s eligibility using verified information and the applicant’s maximum loan amount based on their repayment ability and the area loan limit for the county in which the property is located. What is the interest rate and payback period? Effective July 1, 2024, the current interest rate for Single Family Housing Direct home loans is 4.875% for low-income and very low-income borrowers. Fixed interest rate based on current market rates at loan approval or loan closing, whichever is lower Interest rate when modified by payment assistance, can be as low as 1% Up to 33 year payback period - 38 year payback period for very low income applicants who can’t afford the 33 year loan term How much down payment is required? No down payment is typically required. Applicants with assets higher than the asset limits may be required to use a portion of those assets. Is there a deadline to apply? Applications for this program are accepted through your local RD office year round. How long does an application take? Processing times vary depending on funding availability and program demand in the area in which an applicant is interested in buying and completeness of the application package. What governs this program? The Housing Act of 1949 as amended, 7 CFR, Part 3550, HB-1-3550 - Direct Single Family Housing Loans Field Office Handbook Why does USDA Rural Development do this? USDA Rural Development’s Section 502 Direct Loan Program provides a path to homeownership for low- and very-low-income families living in rural areas, and families who truly have no other way to make affordable homeownership a reality. Providing these affordable homeownership opportunities promotes prosperity, which in turn creates thriving communities and improves the quality of life in rural areas. NOTE: Because citations and other information may be subject to change please always consult the program instructions listed in the section above titled "What Law Governs this Program?" You may also contact your local office for assistance.

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How much can YOU afford?

If you are not sure how much you can afford, you are not alone.  Our mortgage calculator is an effective way to see where you stand when it comes to the cost of owning a home. 

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Pete Froehlich
Senior Mortgage Loan Professional

Speak to a mortgage professional now

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