Illinois Mortgage Guides

Illinois FHA Loan Requirements 2026

Q: Can I combine an FHA loan with IHDA down payment assistance?

Yes. IHDA down payment assistance is designed to layer on top of an FHA first mortgage through a participating lender, letting Illinois buyers use FHA's flexible credit requirements while covering much of the down payment and closing costs, as little as $1,000 or 1% out of pocket with IHDAccess Home.

Q: What if my purchase price is above the FHA limit in Illinois?

Illinois's single-family FHA limit is $541,287 statewide. If your loan would exceed it, you can use a conventional loan (conforming up to $832,750), make a larger down payment, or use a jumbo loan. Illinois has no high-cost counties, so $541,287 applies everywhere in the state.

Q: Are condos eligible for FHA financing in Illinois?

Yes, but only condos in FHA-approved projects. Condo approval is at the project level, so a unit is eligible only if the association has FHA project approval. Search the HUD condo approval database or ask your lender before making an offer.

FHA loan limits for Illinois, credit score and down payment rules, mortgage insurance costs, and how FHA financing compares to conventional loans in the Illinois housing market.

📖 8 min readUpdated 2026Illinois · FHA Loans

$541,287FHA limit, single-family (all IL counties)

NoneFHA high-cost counties in Illinois

3.5%Minimum down payment (580+ score)

0.55%Annual MIP (most loans)

In This Guide

Illinois FHA loan limits
FHA requirements in Illinois
FHA mortgage insurance (MIP)
FHA vs. conventional
Illinois FHA FAQs

Illinois FHA Loan Limits (2026)

FHA loan limits are set by HUD and track a percentage of the conforming loan limit. Unlike many states, Illinois is uniform — every county carries the same FHA limit, with no high-cost designations anywhere in the state.

Property Type	2026 FHA Limit (all Illinois counties)
Single-family (1-unit)	$541,287
2-unit	$693,050
3-unit	$837,700
4-unit	$1,041,125

Illinois has no FHA high-cost counties. The single-family limit of $541,287 applies statewide — the same in Cook County (Chicago) as in every downstate county. Confirm your county at HUD’s official FHA Mortgage Limits lookup tool.

FHA Requirements in Illinois

Requirement	FHA Standard	Illinois Notes
Minimum credit score (3.5% down)	580	Many Illinois lenders add a 580–620 overlay
Minimum credit score (10% down)	500	Limited lender options below 580
Minimum down payment	3.5%	Can be covered by IHDA down payment assistance
Maximum DTI	43% (up to ~50%)	Higher DTI possible with strong compensating factors
Loan limit (statewide)	$541,287 (1-unit)	Same in every Illinois county
Upfront MIP	1.75% of loan	Financed into the loan or paid at closing
Annual MIP (most loans)	0.55%/year	For a 30-yr loan with <10% down
MIP duration (<10% down)	Life of loan	Key FHA disadvantage vs. conventional
Property requirement	Primary residence	Must be owner-occupied within 60 days

FHA Mortgage Insurance (MIP)

Every FHA loan carries two mortgage insurance premiums: an upfront premium of 1.75% of the loan amount (which can be financed into the loan), and an annual premium — 0.55% for most 30-year loans with less than 10% down — paid monthly.

Example on a $335,000 purchase with 3.5% down (a ~$323,275 loan): the upfront MIP is about $5,657 (financed), and annual MIP at 0.55% adds roughly $1,778 per year, or about $148 per month. With less than 10% down, MIP lasts the life of the loan; with 10% or more down, it drops off after 11 years. Many borrowers later refinance to a conventional loan at 20% equity to remove it.

FHA vs. Conventional for Illinois Buyers

Factor	FHA	Conventional
Min credit score	580	620
Min down payment	3.5%	3–5%
Mortgage insurance	Life of loan (if <10% down)	Cancels at 20% equity
IHDA DPA compatible	Yes	Yes (HFA options)
Best for Illinois buyers	580–679 credit, limited savings	680+ credit, stable income

Illinois FHA FAQs

Can I combine an FHA loan with IHDA down payment assistance?

Yes. IHDA’s down payment assistance programs are designed to layer on top of an FHA first mortgage through a participating lender. This lets Illinois buyers use FHA’s flexible credit requirements while covering much of the down payment and closing costs — as little as $1,000 or 1% out of pocket with IHDAccess Home.

What if my purchase price is above the FHA limit in Illinois?

Illinois’s single-family FHA limit is $541,287 statewide. If your loan would exceed it, you can use a conventional loan (conforming up to $832,750), make a larger down payment to bring the loan under the FHA limit, or use a jumbo loan. Because Illinois has no high-cost counties, the $541,287 figure applies everywhere in the state.

Are condos eligible for FHA financing in Illinois?

Yes, but only condos in FHA-approved projects. Condo approval is handled at the project level, so an individual unit is eligible only if the association has FHA project approval. Search the HUD condo approval database or ask your lender to confirm before making an offer on a condo — common in Chicago and the collar suburbs.