Understanding Your Home Loan Options in West Central IL

When it comes to mortgage loans, today’s first-time homebuyers have more options than ever. More choices can be a good thing, but they also may be overwhelming. If you’re wondering, what mortgage loan is best for me in West Central IL, this article will help you understand your options so you can find the best home loan for you!

Conventional Mortgages

A conventional mortgage could be a great fit for homeseekers with good credit and steady, reliable income.

Conventional mortgages are the most common type of home loan. You can choose between conforming loans, which meet the loan limits set by Fannie Mae, or non-conforming (jumbo loans), which exceed the limits for your area.

Fannie Mae and Freddie Mac Maximum Loan Limits For West Central Illinois

  • Adams County: $510,400 for one-unit properties
  • Hancock County: $510,400 for one-unit properties
  • Sangamon County: $510,400 for one-unit properties
  • Schuyler County: $510,400 for one-unit properties
  • McDonough County: $510,400 for one-unit properties

Benefits and Features of Conventional Loans

  • Borrowing costs tend to be lower than other types of mortgages.
  • May be able to avoid PMI once you reach 20% equity in your home.
  • Down payments vary but tend to have low minimums.
  • The seller of the home may be able to help with closing costs if negotiated.
  • Great fit for borrowers with good credit and steady, reliable income.

Government-Insured Loans

Government-issued Loans are built to help families finance their home even when they do not qualify for a conventional mortgage.

This category includes USDA Rural Development Loans, which help low-to-moderate-income families in eligible rural areas buy, build, or improve a home. Check your location’s eligibility here.

Benefits and Features of Government-Insured Loans

  • Tend to be a more affordable option
  • Great fit for low to moderate-income families in eligible rural areas
  • Can be used for building, buying, or home improvement financing
  • This type of loan can help you finance a home purchase if you do not qualify for a conventional loan
  • Could be a good fit for homebuyers who don’t have a large amount of savings or a credit score that would qualify for a conventional loan

Fixed-Rate Loans

Many homeowners will find fixed-rate loans appealing if their priority is to keep the interest rate of their loan stable.

A fixed-rate mortgage means that the interest rate is the same over the life of the loan. Current rates may rise or fall, but your mortgage will have the same rate you originally signed up for.

Benefits and Features of Fixed-Rate Loans

  • Monthly mortgage payment stays consistent/stable
  • Helpful for keeping an accurate monthly budget

Adjustable-Rate Loans

Adjustable-rate loans tend to have a low rate for a fixed period, but can potentially fluctuate with the tides of the housing market.

With an Adjustable-Rate Mortgage (ARM) Loan, you generally have an introductory period with a low fixed rate. Then the interest rate can adjust up or down depending on the benchmark rate it’s tied to. How often and how much it can change will depend on your specific loan terms.

Benefits and Features of Adjustable-Rate Loans

  • You may save money on monthly payments if interest rates go down later.
  • However, if rates go up, your monthly payment could rise accordingly.

Mortgage Loan Programs

Looking for additional information or assistance with buying your first home? Check out these resources:


Find the right mortgage loan option for you!

Serving our communities since 1946, First Bankers Trust Company has lived by the motto that customers are always FIRST. Are you ready to apply for a mortgage or have questions about comparing mortgage loans?  Learn more about mortgage programs that you qualify for, and what type of home loan is best for your needs. Our friendly and experienced loan officers will help guide you through the homebuying process.