FHA Loans in Illinois
The FHA loan limit in Illinois is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
Illinois FHA loan limits cover the overwhelming majority of homes statewide, with elevated limits in the Chicago metro area counties reflecting higher prices. FHA loans are extremely popular in Chicago's south and west suburbs and in downstate cities like Rockford, Springfield, and Peoria, where home prices make the 3.5% down payment very manageable. The prevalence of older housing stock (many Chicago-area homes predate 1960) means FHA appraisals frequently identify issues with lead paint, aging roofs, and outdated electrical systems.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,926
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $720 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,926 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Illinois's average rate of 1.83%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Illinois
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Illinois) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
