FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in Illinois

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Illinois homebuyers with lower credit scores and little money saved up may qualify to borrow up to $472,030 to buy a single-family home with a loan backed by the Federal Housing Administration (FHA) in 2023. Borrowers looking for two- to four-unit homes get even more, with the ability to borrow as much as $907,900 for a four-unit home. Here’s more on what you should know about securing an FHA loan in Illinois.

Illinois FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ADAMS$472,030$604,400$730,525$907,900$134,000
ALEXANDER$472,030$604,400$730,525$907,900$200,000
BOND$472,030$604,400$730,525$907,900$330,000
BOONE$472,030$604,400$730,525$907,900$190,000
BROWN$472,030$604,400$730,525$907,900$80,000
BUREAU$472,030$604,400$730,525$907,900$286,000
CALHOUN$472,030$604,400$730,525$907,900$330,000
CARROLL$472,030$604,400$730,525$907,900$85,000
CASS$472,030$604,400$730,525$907,900$102,000
CHAMPAIGN$472,030$604,400$730,525$907,900$190,000
CHRISTIAN$472,030$604,400$730,525$907,900$85,000
CLARK$472,030$604,400$730,525$907,900$97,000
CLAY$472,030$604,400$730,525$907,900$76,000
CLINTON$472,030$604,400$730,525$907,900$330,000
COLES$472,030$604,400$730,525$907,900$129,000
COOK$472,030$604,400$730,525$907,900$386,000
CRAWFORD$472,030$604,400$730,525$907,900$75,000
CUMBERLAND$472,030$604,400$730,525$907,900$129,000
DE WITT$472,030$604,400$730,525$907,900$98,000
DEKALB$472,030$604,400$730,525$907,900$386,000
DOUGLAS$472,030$604,400$730,525$907,900$151,000
DUPAGE$472,030$604,400$730,525$907,900$386,000
EDGAR$472,030$604,400$730,525$907,900$104,000
EDWARDS$472,030$604,400$730,525$907,900$43,000
EFFINGHAM$472,030$604,400$730,525$907,900$120,000
FAYETTE$472,030$604,400$730,525$907,900$70,000
FORD$472,030$604,400$730,525$907,900$96,000
FRANKLIN$472,030$604,400$730,525$907,900$96,000
FULTON$472,030$604,400$730,525$907,900$140,000
GALLATIN$472,030$604,400$730,525$907,900$36,000
GREENE$472,030$604,400$730,525$907,900$104,000
GRUNDY$472,030$604,400$730,525$907,900$386,000
HAMILTON$472,030$604,400$730,525$907,900$48,000
HANCOCK$472,030$604,400$730,525$907,900$112,000
HARDIN$472,030$604,400$730,525$907,900$37,000
HENDERSON$472,030$604,400$730,525$907,900$189,000
HENRY$472,030$604,400$730,525$907,900$194,000
IROQUOIS$472,030$604,400$730,525$907,900$90,000
JACKSON$472,030$604,400$730,525$907,900$115,000
JASPER$472,030$604,400$730,525$907,900$75,000
JEFFERSON$472,030$604,400$730,525$907,900$90,000
JERSEY$472,030$604,400$730,525$907,900$330,000
JO DAVIESS$472,030$604,400$730,525$907,900$187,000
JOHNSON$472,030$604,400$730,525$907,900$115,000
KANE$472,030$604,400$730,525$907,900$386,000
KANKAKEE$472,030$604,400$730,525$907,900$135,000
KENDALL$472,030$604,400$730,525$907,900$386,000
KNOX$472,030$604,400$730,525$907,900$90,000
LAKE$472,030$604,400$730,525$907,900$386,000
LASALLE$472,030$604,400$730,525$907,900$286,000
LAWRENCE$472,030$604,400$730,525$907,900$66,000
LEE$472,030$604,400$730,525$907,900$112,000
LIVINGSTON$472,030$604,400$730,525$907,900$114,000
LOGAN$472,030$604,400$730,525$907,900$109,000
MACON$472,030$604,400$730,525$907,900$105,000
MACOUPIN$472,030$604,400$730,525$907,900$330,000
MADISON$472,030$604,400$730,525$907,900$330,000
MARION$472,030$604,400$730,525$907,900$75,000
MARSHALL$472,030$604,400$730,525$907,900$140,000
MASON$472,030$604,400$730,525$907,900$65,000
MASSAC$472,030$604,400$730,525$907,900$155,000
MCDONOUGH$472,030$604,400$730,525$907,900$75,000
MCHENRY$472,030$604,400$730,525$907,900$386,000
MCLEAN$472,030$604,400$730,525$907,900$181,000
MENARD$472,030$604,400$730,525$907,900$142,000
MERCER$472,030$604,400$730,525$907,900$194,000
MONROE$472,030$604,400$730,525$907,900$330,000
MONTGOMERY$472,030$604,400$730,525$907,900$82,000
MORGAN$472,030$604,400$730,525$907,900$100,000
MOULTRIE$472,030$604,400$730,525$907,900$94,000
OGLE$472,030$604,400$730,525$907,900$150,000
PEORIA$472,030$604,400$730,525$907,900$140,000
PERRY$472,030$604,400$730,525$907,900$83,000
PIATT$472,030$604,400$730,525$907,900$190,000
PIKE$472,030$604,400$730,525$907,900$105,000
POPE$472,030$604,400$730,525$907,900$35,000
PULASKI$472,030$604,400$730,525$907,900$77,000
PUTNAM$472,030$604,400$730,525$907,900$286,000
RANDOLPH$472,030$604,400$730,525$907,900$93,000
RICHLAND$472,030$604,400$730,525$907,900$111,000
ROCK ISLAND$472,030$604,400$730,525$907,900$194,000
SALINE$472,030$604,400$730,525$907,900$60,000
SANGAMON$472,030$604,400$730,525$907,900$142,000
SCHUYLER$472,030$604,400$730,525$907,900$68,000
SCOTT$472,030$604,400$730,525$907,900$100,000
SHELBY$472,030$604,400$730,525$907,900$90,000
ST. CLAIR$472,030$604,400$730,525$907,900$330,000
STARK$472,030$604,400$730,525$907,900$140,000
STEPHENSON$472,030$604,400$730,525$907,900$89,000
TAZEWELL$472,030$604,400$730,525$907,900$140,000
UNION$472,030$604,400$730,525$907,900$138,000
VERMILION$472,030$604,400$730,525$907,900$74,000
WABASH$472,030$604,400$730,525$907,900$101,000
WARREN$472,030$604,400$730,525$907,900$89,000
WASHINGTON$472,030$604,400$730,525$907,900$116,000
WAYNE$472,030$604,400$730,525$907,900$57,000
WHITE$472,030$604,400$730,525$907,900$70,000
WHITESIDE$472,030$604,400$730,525$907,900$100,000
WILL$472,030$604,400$730,525$907,900$386,000
WILLIAMSON$472,030$604,400$730,525$907,900$115,000
WINNEBAGO$472,030$604,400$730,525$907,900$190,000
WOODFORD$472,030$604,400$730,525$907,900$140,000

How are FHA loan limits determined?

FHA loan limits change on a yearly basis based on a percentage of the conforming loan limits — which rose to $726,200 for 2023 — published by the Federal Housing Finance Agency (FHFA).

HUD sets the FHA “floor” and “ceiling” on a county-by-county basis to determine the low- and high-cost limits.

The FHA floor is set based on 65% of the conforming loan limit, which comes out to $472,030 if you’re buying a one-unit home. The FHA ceiling is set at up to 150% of the current conforming loan limit in high-cost parts of the country, which allows single-family homebuyers to borrow up to $1,089,300. However, there are no high-cost counties in the state of Illinois based on the most recent HUD FHA loan limit update.

How to qualify for an FHA loan in Illinois

Illinois FHA loans may benefit aspiring homeowners with smaller down payments and lower credit scores than conventional loans allow. With median home prices capping out at $386,000 in the most expensive counties in Illinois, you’re not likely to need more than the $472,030 limit for a one-unit home.

Whether you’re buying your first home or you’ve been through the process a few times, you’ll still need to meet the FHA loan requirements to qualify:

Down payment and credit scores: Borrowers with credit scores of 580 or higher may qualify with down payments as low as just 3.5%. Borrowers with credit scores between 500 and 579 may still be able to qualify for FHA loans. They’ll just have to make larger down payments of at least 10%.

Debt-to-income (DTI) ratio: Your DTI ratio is the measure of how much of your income is taken up by monthly debt payments. FHA lenders prefer that this ratio is less than or equal to 43%, but exceptions are possible with good credit and extra savings.

Mortgage insurance: The mortgage insurance on an FHA loan is charged on both an upfront and a yearly basis. The upfront mortgage insurance premium (UFMIP) is based on 1.75% of the total loan amount and collected at the time of closing. The annual mortgage insurance premium (MIP), which ranges between 0.45% and 1.05%, is divided by 12 and added to your monthly payment.

Occupancy: To get an FHA loan, the home you buy must be your primary residence for at least 12 months.

FHA appraisal: An FHA appraisal must be completed to assess the home’s value and condition if you’re buying a home with an FHA mortgage.

Buying a multifamily property with an FHA loan

FHA loan guidelines allow you to purchase a multifamily home with up to four units with a 3.5% down payment and higher loan limits for each additional unit. An added bonus: You may be able to use the rental income to qualify. You must live in one of the units for at least a year as your primary residence.

The table below shows the 2023 FHA loan limits in Illinois for multifamily homes:

Number of units2023 FHA loan limits in Illinois
Two$604,400
Three$730,525
Four$907,900

FHA lenders in Illinois

Lender nameLT ratingMinimum FHA credit score
PennyMac Mortgage5 stars580
Truist Mortgage4 stars580
Fairway Independent Mortgage3 stars580
Homebridge Financial Services3 starsNot published
Caliber Home Loans3 stars620

 

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