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Illinois FHA Loans

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Illinois FHA Loan | Requirements | Lending Limits | Apply

Our goal is to provide you with all of the information and tools you need in order to determine if a FHA loan is right for you. On this page, you can view the 2017 Illinois FHA loan guidelines, view loan limits by county, and calculate your monthly payment.  These guidelines include the FHA requirements related to credit history, income, employment, and the type of property you want to purchase.  After reading the loan requirements and loan limits, you can use our detailed FHA calculator, which will allow you to see what your monthly payment, mortgage insurance, and monthly escrow will be.

One of the most common questions people ask is regarding where in Illinois FHA loans are available. They are available throughout every county of the state, and you can view the max lending limits for your county below.  FHA mortgages are especially popular in cities and larger towns. You can finance a home purchase with a FHA loan in a rural area as well though.

Illinois FHA Loan Requirements

Keep in mind that each application is looked at individually, and FHA loans have a considerable amount of leniency in what is required for an approval. There are some concrete loan requirements set out by the FHA though, which dictates what loans they will insure. The following information is written in the context of buying a home with a FHA loan. If you already have a FHA loan, or if you wish to refinance into a FHA loan, please click here to learn about FHA refinancing.

The mandatory Illinois FHA loan requirements for a home purchase are as follows:

  • Primary Residence – You must occupy the home that you intend to purchase and have it be your primary residence. The FHA does not insure investment properties. Multifamily homes are allowed, which can have up to 4 units, but you must occupy at least one of them for it to be eligible for a FHA home loan in Kansas.
  • Credit Score – A credit score of 580 or higher is needed for FHA loans.  This includes first time home buyer mortgages, repeat buyer loans, and any FHA refinance program.
  • Job History – Proof of employment for 2 years is required. It is ok if you have changed jobs, but you need to show consistency of income.
  • Income Documentation – Paystubs and tax returns are required to show employment income, as well as bank statements, including your checking or savings accounts.
  • DTI Ratio – Your monthly debts, including your new mortgage payment, must not exceed 43% of your bring home income.  What you want to do is calculate all of your current monthly debts (do not include anything that does not show on your credit report – only those that appear on a credit report are counted).  Then, take the total of your current debts, plus what your expected new mortgage payment, and get a total.  Let’s say your current monthly debts are $750 and your new mortgage payment will be $1,000/month.  Your total monthly debts would be $1,750.  Compare this amount to your monthly income to calculate your DTI ratio.  Your monthly debts compared to your monthly income shall not exceed 43% for you to qualify for a FHA loan.

You can calculate your new FHA payment below. Not sure what your FHA interest rate will be?  We can provide you with a free consultation and rate quote.

FHA Mortgage Calculator

%

Total Monthly Payment

$0

FHA base loan amount$0
FHA upfront MIP 1.75%$0
FHA total loan amount$0
Principal & interest$0
FHA MIP 0%$0
Monthly escrow$0
Down payment0%

  • Price of Home – Enter the price of the home you want to buy. If you do not have a home in mind yet, just add in a number in the range you expect to want to buy a home for.
  • Mortgage – The second field titled “mortgage”, is by default on a 30 year fixed loan schedule.  This is the most common loan repayment schedule selected for FHA loans.  You can change it to 20 years, 15 years, or 10 years if you want a shorter loan amortization.
  • Interest Rate – The interest rate a borrower receives depends on their credit, income, and other qualifying factors.  To get an actual rate quote, you will need to speak with a licensed loan officer.  You can call 1-800-731-3560 to speak with a loan specialist and receive a rate quote.
  • Down Payment – FHA loans require a 3.5% down payment.  If you would like to put more down, add in more into the down payment field.  Please note that not everyone will qualify for a 3.5% down payment, and of course, not all applicants are approved for a loan at all.  The 3.5% is the amount that many FHA loan applicants will be allowed as a minimum down payment.
  • Property Taxes – Add the annual taxes for the home you want to buy.  To find out how much the annual property taxes are, check with the county accessor.  You can also ask a real estate agent to help you find out what the exact annual property taxes are for a home you are interested in.
  • Annual Insurance – The amount that the annual homeowners insurance will cost depends on the property you intend to buy, your homeowners insurance claim history (if you have owned a home before, and had to make a claim), and the specific homeowners insurance company that you select to insure your home.
  • Down Payment – This is the percentage that is calculated based upon the home purchase price and the down payment amount.

After summiting information into these fields, it will calculate how much the FHA mortgage payment will be based upon these numbers.  The next set of data presented on the right side and shows under the total monthly payment is as follows:

  • FHA Base Loan Amount -This is the amount of your loan after subtracting your down payment from the total, but prior to adding in the FHA upfront mortgage insurance premium (UPMIP).
  • FHA Upfront MIP – All FHA loans require a 1.75% upfront mortgage insurance premium to be paid. This is calculated from the base loan amount. This 1.75% is the same for any borrower and on any type of FHA loan. It does not vary from one FHA lender to another.
  • FHA Total Loan Amount – This is the combined total of your FHA base loan amount (after subtracting the down payment), along with the FHA UPMIP. You have the option to pay the FHA UPMIP amount out of pocket, or you can wrap it into the loan amount.  Most decide to include it in the loan amount, so we have it automatically added on the calculator.
  • Principle and Interest – This is the amount of your mortgage payment before adding mortgage insurance, and property taxes, and property insurance.
  • FHA MIP – This is the monthly mortgage insurance premiums required on all FHA loans.   The amount depends on the type of loan, how many years the repayment schedule is (such as 15 years or 30 years), and the loan-to-value (LTV) ratio.  A 15 year loan with a LTV less than 90%, the monthly MIP will be 0.45%.  A 15 year loan with a LTV greater than 90%, the monthly MIP will be 0.70%.  For a 30 year loan with a LTV less than 95% the monthly MIP is 0.80%.  For a 30 year loan with a LTV greater than 95%, the monthly MIP is 0.85%.
  • Monthly Escrow – This is how much your property taxes and property insurance is after taking the annual amounts and dividing them by 12 monthly payments.

Would you like to receive more information or apply for a FHA loan?

2017 Illinois FHA Loan Limits

The FHA has limitations to how much you can borrow.  Look below for your county to see what the maximum loan amount is allowed with a FHA loan in your location.  These loan limits were increased for 2017.  If your loan closes prior to January 1st, 2017, please lookup the loan limits for 2016.

County Single Family 2 Family 3 Family 4 Family
ADAMS $275,665 $352,950 $426,625 $530,150
ALEXANDER $275,665 $352,950 $426,625 $530,150
BOND $275,665 $352,950 $426,625 $530,150
BOONE $339,250 $434,300 $524,950 $652,400
BROWN $275,665 $352,950 $426,625 $530,150
BUREAU $275,665 $352,950 $426,625 $530,150
CALHOUN $275,665 $352,950 $426,625 $530,150
CARROLL $275,665 $352,950 $426,625 $530,150
CASS $275,665 $352,950 $426,625 $530,150
CHAMPAIGN $275,665 $352,950 $426,625 $530,150
CHRISTIAN $275,665 $352,950 $426,625 $530,150
CLARK $275,665 $352,950 $426,625 $530,150
CLAY $275,665 $352,950 $426,625 $530,150
CLINTON $275,665 $352,950 $426,625 $530,150
COLES $275,665 $352,950 $426,625 $530,150
COOK $365,700 $468,150 $565,900 $703,250
CRAWFORD $275,665 $352,950 $426,625 $530,150
CUMBERLAND $275,665 $352,950 $426,625 $530,150
DE WITT $275,665 $352,950 $426,625 $530,150
DEKALB $365,700 $468,150 $565,900 $703,250
DOUGLAS $275,665 $352,950 $426,625 $530,150
DUPAGE $365,700 $468,150 $565,900 $703,250
EDGAR $275,665 $352,950 $426,625 $530,150
EDWARDS $275,665 $352,950 $426,625 $530,150
EFFINGHAM $275,665 $352,950 $426,625 $530,150
FAYETTE $275,665 $352,950 $426,625 $530,150
FORD $275,665 $352,950 $426,625 $530,150
FRANKLIN $275,665 $352,950 $426,625 $530,150
FULTON $275,665 $352,950 $426,625 $530,150
GALLATIN $275,665 $352,950 $426,625 $530,150
GREENE $275,665 $352,950 $426,625 $530,150
GRUNDY $365,700 $468,150 $565,900 $703,250
HAMILTON $275,665 $352,950 $426,625 $530,150
HANCOCK $275,665 $352,950 $426,625 $530,150
HARDIN $275,665 $352,950 $426,625 $530,150
IROQUOIS $275,665 $352,950 $426,625 $530,150
JACKSON $275,665 $352,950 $426,625 $530,150
JASPER $275,665 $352,950 $426,625 $530,150
JEFFERSON $275,665 $352,950 $426,625 $530,150
JERSEY $275,665 $352,950 $426,625 $530,150
JO DAVIESS $275,665 $352,950 $426,625 $530,150
JOHNSON $275,665 $352,950 $426,625 $530,150
KANE $365,700 $468,150 $426,625 $703,250
KANKAKEE $275,665 $352,950 $426,625 $530,150
KENDALL $365,700 $468,150 $565,900 $703,250
KNOX $275,665 $352,950 $530,150 $530,150
LAKE $365,700 $468,150 $565,900 $703,250
LASALLE $275,665 $352,950 $530,150 $530,150
LAWRENCE $275,665 $352,950 $426,625 $530,150
LEE $275,665 $352,950 $426,625 $530,150
LIVINGSTON $275,665 $352,950 $426,625 $530,150
LOGAN $275,665 $352,950 $426,625 $530,150
MACON $275,665 $352,950 $426,625 $530,150
MACOUPIN $275,665 $352,950 $426,625 $530,150
MADISON $275,665 $352,950 $426,625 $530,150
MARION $275,665 $352,950 $426,625 $530,150
MARSHALL $275,665 $352,950 $426,625 $530,150
MASON $275,665 $352,950 $426,625 $530,150
MASSAC $275,665 $352,950 $426,625 $530,150
MCDONOUGH $275,665 $352,950 $426,625 $530,150
MCHENRY $365,700 $468,150 $565,900 $703,250
MCLEAN $275,665 $352,950 $426,625 $530,150
MENARD $275,665 $352,950 $426,625 $530,150
MERCER $275,665 $352,950 $426,625 $530,150
MONROE $275,665 $352,950 $426,625 $530,150
MONTGOMERY $275,665 $352,950 $426,625 $530,150
MORGAN $275,665 $352,950 $426,625 $530,150
MOULTIRE $275,665 $352,950 $426,625 $530,150
OGLE $275,665 $352,950 $426,625 $530,150
PEORIA $275,665 $352,950 $426,625 $530,150
PERRY $275,665 $352,950 $426,625 $530,150
PIATT $275,665 $352,950 $426,625 $530,150
PIKE $275,665 $352,950 $426,625 $530,150
POPE $275,665 $352,950 $426,625 $530,150
PULASKI $275,665 $352,950 $426,625 $530,150
PUTNAM $275,665 $352,950 $426,625 $530,150
RANDOLPH $275,665 $352,950 $426,625 $530,150
RICHLAND $275,665 $352,950 $426,625 $530,150
ROCK ISLAND $275,665 $352,950 $426,625 $530,150
SALINE $275,665 $352,950 $426,625 $530,150
SANGAMON $275,665 $352,950 $426,625 $530,150
SCHUYLER $275,665 $352,950 $426,625 $530,150
SCOTT $275,665 $352,950 $426,625 $530,150
SHELBY $275,665 $352,950 $426,625 $530,150
ST. CLAIR $275,665 $352,950 $426,625 $530,150
STARK $275,665 $352,950 $426,625 $530,150
STEPHENSON $275,665 $352,950 $426,625 $530,150
TAZEWELL $275,665 $352,950 $426,625 $530,150
UNION $275,665 $352,950 $426,625 $530,150
VERMILION $275,665 $352,950 $426,625 $530,150
WABASH $275,665 $352,950 $426,625 $530,150
WARREN $275,665 $352,950 $426,625 $530,150
WASHINGTON $275,665 $352,950 $426,625 $530,150
WAYNE $275,665 $352,950 $426,625 $530,150
WHITE $275,665 $352,950 $426,625 $530,150
WHITESIDE $275,665 $352,950 $426,625 $530,150
WILL $365,700 $468,150 $565,900 $703,250
WILLIAMSON $275,665 $352,950 $426,625 $530,150
WINNEBAGO $339,250 $434,300 $524,950 $652,400
WOODFORD $275,665 $352,950 $426,625 $530,150

 

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