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Illinois FHA Loan

What are Illinois FHA Loans?
FHA stands for Federal Housing Authority. FHA Loans provide low-cost insured Home Mortgage Loans that suit a variety of purchasing options. Whether you're buying a home or want to refinance your mortgage, FHA loans might be right for you. If you're unsure about your credit rating, or have concerns about a down payment, FHA loans can give you piece of mind with super low closing costs and flexible payment options.


What factors determine if I am eligible for an FHA Loan in Illinois?
To be eligible for FHA Mortgage Loans, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

What is the maximum amount that I can borrow?
The maximum amount for an FHA Mortgage is determined by:

Maximum FHA Loan Amount in Illinois: The Maximum FHA Loan amount allowed for FHA Home Mortgages varies from county to county in IL. The highest maximum FHA Home Loan right now in Illinois is $365,700. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, please refer to the Illinois FHA Loan Limit chart at the bottom of this page.

Maximum FHA Financing: In Illinois, the maximum FHA financing will be 97.75% of the appraised value of the home or its selling price, whichever is lower.

How much money will I need for the down payment and closing costs?
Illinois FHA loans require the home buyer to invest at least 3.5% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the home buyer must invest at least $3,500. However, the home buyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.

What property types are allowed for FHA Loans in Illinois?
While FHA Guidelines do require that the property be Owner Occupied (OO), they do allow you to purchase condos, planned unit developments, manufactured homes, and 1-4 family residences, in which the borrower intends to occupy one part of the multi-unit residence.

More information on FHA Mortgages

What types of refinance programs does FHA offer in Illinois?
There are three main types of FHA Refinance loans available in IL.

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate FHA Insured Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.


Streamline Refinance

The FHA Streamline Refinance is designed to lower the interest rate on a current FHA House Loan or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.

How much can I refinance in Illinois?
The maximum amount for an FHA loan is determined by

Maximum FHA Loan Amount in Illinois
The maximum FHA Loan Amount allowed for FHA Mortgage Refinance varies from county to county in Illinois. The highest maximum FHA Home Refinance amount right now in Illinois is $365,700. The lowest maximum amount available in any county is $271,050. To see what the limit is in the county in which you're interested, visit the following site https://entp.hud.gov/idapp/html/hicostlook.cfm. This site lists U.S. territories as well as states.

Maximum FHA Financing: In Illinois, the maximum financing for an FHA Rate Term Refinance (No Cash-Out) or FHA Streamline Refinance Program (No Cash-Out) will be 97.75% of the appraised value of the home or its selling price, whichever is lower. The maximum financing for an FHA Cash-Out Refinance in Illinois is 85%.

What factors determine if I am eligible for an FHA Refinance Loan?
To be eligible for an FHA Mortgage Loan Refinance in Illinois, your monthly housing costs (mortgage principal and interest, property taxes, and insurance) must meet a specified percentage of your gross monthly income. Your credit background will be fairly considered. You must be able to make a down payment, cover closing costs and have enough income to pay your monthly debt.

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Illinois FHA Mortgage Limits by County

MSA Name County One-Family Two-Family Three-Family Four-Family
QUINCY, IL-MO (MICRO) ADAMS $271,050 $347,000 $419,425 $521,250
CAPE GIRARDEAU-JACKSON, MO-IL (MICRO) ALEXANDER $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) BOND $271,050 $347,000 $419,425 $521,250
ROCKFORD, IL (MSA) BOONE $339,250 $434,300 $524,950 $652,400
NON-METRO BROWN $271,050 $347,000 $419,425 $521,250
OTTAWA-STREATOR, IL (MICRO) BUREAU $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) CALHOUN $271,050 $347,000 $419,425 $521,250
NON-METRO CARROLL $271,050 $347,000 $419,425 $521,250
NON-METRO CASS $271,050 $347,000 $419,425 $521,250
CHAMPAIGN-URBANA, IL (MSA) CHAMPAIGN $271,050 $347,000 $419,425 $521,250
TAYLORVILLE, IL (MICRO) CHRISTIAN $271,050 $347,000 $419,425 $521,250
NON-METRO CLARK $271,050 $347,000 $419,425 $521,250
NON-METRO CLAY $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) CLINTON $271,050 $347,000 $419,425 $521,250
CHARLESTON-MATTOON, IL (MICRO) COLES $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO COOK $365,700 $468,150 $565,900 $703,250
NON-METRO CRAWFORD $271,050 $347,000 $419,425 $521,250
CHARLESTON-MATTOON, IL (MICRO) CUMBERLAND $271,050 $347,000 $419,425 $521,250
NON-METRO DE WITT $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO DEKALB $365,700 $468,150 $565,900 $703,250
NON-METRO DOUGLAS $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO DUPAGE $365,700 $468,150 $565,900 $703,250
NON-METRO EDGAR $271,050 $347,000 $419,425 $521,250
NON-METRO EDWARDS $271,050 $347,000 $419,425 $521,250
EFFINGHAM, IL (MICRO) EFFINGHAM $271,050 $347,000 $419,425 $521,250
NON-METRO FAYETTE $271,050 $347,000 $419,425 $521,250
CHAMPAIGN-URBANA, IL (MSA) FORD $271,050 $347,000 $419,425 $521,250
NON-METRO FRANKLIN $271,050 $347,000 $419,425 $521,250
CANTON, IL (MICRO) FULTON $271,050 $347,000 $419,425 $521,250
NON-METRO GALLATIN $271,050 $347,000 $419,425 $521,250
NON-METRO GREENE $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO GRUNDY $365,700 $468,150 $565,900 $703,250
MOUNT VERNON, IL (MICRO) HAMILTON $271,050 $347,000 $419,425 $521,250
NON-METRO HANCOCK $271,050 $347,000 $419,425 $521,250
NON-METRO HARDIN $271,050 $347,000 $419,425 $521,250
BURLINGTON, IA-IL (MICRO) HENDERSON $271,050 $347,000 $419,425 $521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA) HENRY $271,050 $347,000 $419,425 $521,250
NON-METRO IROQUOIS $271,050 $347,000 $419,425 $521,250
CARBONDALE, IL (MICRO) JACKSON $271,050 $347,000 $419,425 $521,250
NON-METRO JASPER $271,050 $347,000 $419,425 $521,250
MOUNT VERNON, IL (MICRO) JEFFERSON $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) JERSEY $271,050 $347,000 $419,425 $521,250
NON-METRO JO DAVIESS $271,050 $347,000 $419,425 $521,250
NON-METRO JOHNSON $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO KANE $365,700 $468,150 $565,900 $703,250
KANKAKEE-BRADLEY, IL (MSA) KANKAKEE $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO KENDALL $365,700 $468,150 $565,900 $703,250
GALESBURG, IL (MICRO) KNOX $271,050 $347,000 $419,425 $521,250
OTTAWA-STREATOR, IL (MICRO) LA SALLE $271,050 $347,000 $419,425 $521,250
LAKE COUNTY-KENOSHA COUNTY, IL-WI METROPOLITAN DIV LAKE $365,700 $468,150 $565,900 $703,250
NON-METRO LAWRENCE $271,050 $347,000 $419,425 $521,250
DIXON, IL (MICRO) LEE $271,050 $347,000 $419,425 $521,250
PONTIAC, IL (MICRO) LIVINGSTON $271,050 $347,000 $419,425 $521,250
LINCOLN, IL (MICRO) LOGAN $271,050 $347,000 $419,425 $521,250
DECATUR, IL (MSA) MACON $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) MACOUPIN $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) MADISON $271,050 $347,000 $419,425 $521,250
CENTRALIA, IL (MICRO) MARION $271,050 $347,000 $419,425 $521,250
PEORIA, IL (MSA) MARSHALL $271,050 $347,000 $419,425 $521,250
NON-METRO MASON $271,050 $347,000 $419,425 $521,250
PADUCAH, KY-IL (MICRO) MASSAC $271,050 $347,000 $419,425 $521,250
MACOMB, IL (MICRO) MCDONOUGH $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO MCHENRY $365,700 $468,150 $565,900 $703,250
BLOOMINGTON-NORMAL, IL (MSA) MCLEAN $271,050 $347,000 $419,425 $521,250
SPRINGFIELD, IL (MSA) MENARD $271,050 $347,000 $419,425 $521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA) MERCER $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) MONROE $271,050 $347,000 $419,425 $521,250
NON-METRO MONTGOMERY $271,050 $347,000 $419,425 $521,250
JACKSONVILLE, IL (MICRO) MORGAN $271,050 $347,000 $419,425 $521,250
NON-METRO MOULTRIE $271,050 $347,000 $419,425 $521,250
ROCHELLE, IL (MICRO) OGLE $271,050 $347,000 $419,425 $521,250
PEORIA, IL (MSA) PEORIA $271,050 $347,000 $419,425 $521,250
NON-METRO PERRY $271,050 $347,000 $419,425 $521,250
CHAMPAIGN-URBANA, IL (MSA) PIATT $271,050 $347,000 $419,425 $521,250
NON-METRO PIKE $271,050 $347,000 $419,425 $521,250
NON-METRO POPE $271,050 $347,000 $419,425 $521,250
NON-METRO PULASKI $271,050 $347,000 $419,425 $521,250
OTTAWA-STREATOR, IL (MICRO) PUTNAM $271,050 $347,000 $419,425 $521,250
NON-METRO RANDOLPH $271,050 $347,000 $419,425 $521,250
NON-METRO RICHLAND $271,050 $347,000 $419,425 $521,250
DAVENPORT-MOLINE-ROCK ISLAND, IA-IL (MSA) ROCK ISLAND $271,050 $347,000 $419,425 $521,250
HARRISBURG, IL (MICRO) SALINE $271,050 $347,000 $419,425 $521,250
SPRINGFIELD, IL (MSA) SANGAMON $271,050 $347,000 $419,425 $521,250
NON-METRO SCHUYLER $271,050 $347,000 $419,425 $521,250
JACKSONVILLE, IL (MICRO) SCOTT $271,050 $347,000 $419,425 $521,250
NON-METRO SHELBY $271,050 $347,000 $419,425 $521,250
ST. LOUIS, MO-IL (MSA) ST. CLAIR $271,050 $347,000 $419,425 $521,250
PEORIA, IL (MSA) STARK $271,050 $347,000 $419,425 $521,250
FREEPORT, IL (MICRO) STEPHENSON $271,050 $347,000 $419,425 $521,250
PEORIA, IL (MSA) TAZEWELL $271,050 $347,000 $419,425 $521,250
NON-METRO UNION $271,050 $347,000 $419,425 $521,250
DANVILLE, IL (MSA) VERMILION $271,050 $347,000 $419,425 $521,250
NON-METRO WABASH $271,050 $347,000 $419,425 $521,250
GALESBURG, IL (MICRO) WARREN $271,050 $347,000 $419,425 $521,250
NON-METRO WASHINGTON $271,050 $347,000 $419,425 $521,250
NON-METRO WAYNE $271,050 $347,000 $419,425 $521,250
NON-METRO WHITE $271,050 $347,000 $419,425 $521,250
STERLING, IL (MICRO) WHITESIDE $271,050 $347,000 $419,425 $521,250
CHICAGO-NAPERVILLE-JOLIET, IL METROPOLITAN DIVISIO WILL $365,700 $468,150 $565,900 $703,250
MARION-HERRIN, IL (MICRO) WILLIAMSON $271,050 $347,000 $419,425 $521,250
ROCKFORD, IL (MSA) WINNEBAGO $339,250 $434,300 $524,950 $652,400
PEORIA, IL (MSA) WOODFORD $271,050 $347,000 $419,425 $521,250

FHA loans in Illinois Top Cities:

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Elmhurst Illinois FHA Loan Lombard Illinois FHA Loan Glenview Illinois FHA Loan
                                                                                                                                

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 Why choose an FHA Mortgage?

  • Illinois FHA Loan Programs require a Low 3.5% down payment.
  • Non-occupant, co-borrower are permitted to qualify for an FHA Home Loan.
  • Illinois FHA Loan Income requirements use expanded qualifying ratios.
  • There are no prepayment penalties for FHA Mortgage Home Loans.
  • An Illinois FHA Loan is fully assumable.
  • FHA Mortgage Insurance has lower premiums.
  • FHA Loan Requirements allow for non-income qualifying, streamline refinance.
  • An FHA Home Mortgage is available all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards.
  • An FHA Home Loan may be used to purchase or refinance a new or existing one to four family home in urban and rural areas, including manufactured homes on permanent foundations.
  • Illinois FHA Loan Terms are offered at periods of 15 or 30 years.

 FHA Refinance Programs

FHA Rate/Term Refinance
The FHA Rate/Term Refinance is for borrowers who currently have a conventional fixed rate or ARM mortgage and wish to refinance into an FHA Mortgage. This program helps borrowers who wish to have a stable, fixed rate HUD FHA Loan.

Cash-Out Refinance
An FHA Cash Out Refinance is perfect for the homeowner who wants to access the equity that they have built up in their home. This program is beneficial to homeowners whose property has increased in value since it was purchased.

FHA Streamline Refinance
The FHA Streamline Refinance is designed to lower the interest rate on a current FHA mortgage or convert a current FHA adjustable rate mortgage into a fixed rate. An FHA Streamline Refinance can be performed quickly and easily. It requires much less hassle and paperwork than a normal refinance including no appraisal, no qualifying debt ratios and no income verification.


 FHA Refinance Questions & Answers

What are the guidelines for an FHA Refinance?
If the borrower wishes to take cash out of the property, then the maximum financing amount is 85% of the appraised value, depending on the borrowers qualifications. If the borrower does not take cash out then the maximum financing will be 97.75% of the appraised value of the home or the amount you are refinancing plus closing costs, whichever is lower.

Why should I consider refinancing into a FHA-insured mortgage?
FHA Refinance Loans do not come with prepayment penalties, have no teaser rates nor balloon payments. They are offered at market rate with terms up to 30 years and are fully amortized, meaning that you pay towards principal and interest every month.

What if I have a prepayment penalty and other refinancing costs and there isn’t enough equity in my home to refinance?
If you do not have sufficient equity in your home to add your prepayment penalty and/or other refinancing costs into your new HUD FHA Mortgage, then you should ask your lender to consider a second mortgage to pay the difference or a short payoff on your existing loan. Offering either of these options is at the discretion of the lender.

Does it matter that the value of my home is now less than what I still owe?
Not to The FHA, but your current lender will have to be willing to accept a short payoff on the existing loan OR to hold a second mortgage to make up the difference needed to pay off the existing mortgage and the home’s value.


FHA Mortgage   |   FHA Refinance   |   FHA LOAN REQUIREMENTS   |   FHA MORTGAGE CALCULATOR   |   FHA MORTGAGE RATES

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