Chicago FHA Loan Rates, Closing Costs & Stats

Chicago-Naperville-Elgin, IL-IN-WI

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    • FHA loans are mortgages created in the 1930's to help insulate lenders from credit risks and help promote home ownership. The Federal Housing Administration (hence, FHA) allows for lower downpayments and credit scores-- making these loans much more accessible than traditional mortgages.

    FHA loans typically need just a 3.5% downpayment with credit scores of 580 or better. For credit scores between 500-579, the downpayment needs to be at least 10%.

    While FHA loans make home ownership much more accessible to first-time homebuyers, they do require PMI (purchase money insurance)-- an additional insurance premium that is paid to the FHA to help cover defaults.

    For additional requirements as defined by the FHA, click here.

    Chicago's 262 lenders originated 18,074 FHA loans during 2023. The total origination value was $4,829,130,000, with an average FHA loan value of $267,187.

    Chicago FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Chicago averaged 6.42% for the week of 2024-10-25, compared to the national average (all FHA variants) of 6.253% for the same period.

    Chicago's average FHA mortgage closing costs are $8,722.

    The average rate for the prior week (2024-10-18) was 6.11% and one month ago for the week of 2024-09-20, the average rate was 6.03%.

    The average rate one year ago was 7.47%.

    For refis of the same type during the week of 2024-10-25, the average rate was 6.57%.

    Click on whitespace and scroll within the chart to zoom in/out. Larger bubbles equate with more originations.

    Chicago FHA Loan Lenders by Rates & Fees

    The below table looks at the average fees/closing costs and rates for FHA 30 Year Fixed Rate (purchase, first lien) mortgages originated by each lender at the Chicago level.

    Name # of Loans 2023 Avg. 30yFix Rate 2023 Avg. Closing Costs
    QUICKEN LOANS, LLC 1,376 6.30% $11,023
    UNITED WHOLESALE MORTGAGE, LLC 1,227 6.56% $13,396
    LOANDEPOT.COM, LLC 1,156 6.70% $12,728
    CROSSCOUNTRY MORTGAGE, LLC 815 6.77% $13,431
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 800 6.77% $11,882
    GUARANTEED RATE, INC. 799 6.61% $12,272
    Neighborhood Loans, Inc. 682 6.69% $14,071
    AMERICAN PACIFIC MORTGAGE CORPORATION 477 6.74% $13,791
    The Federal Savings Bank 297 6.59% $12,859
    NEWREZ LLC 282 6.69% $11,472
    FIRST CENTENNIAL MORTGAGE CORPORATION 280 6.73% $10,065
    PENNYMAC LOAN SERVICES, LLC 272 6.44% $12,669
    Barrington Bank & Trust Company, N.A. 266 6.64% $11,441
    FREEDOM MORTGAGE CORPORATION 266 6.89% $13,263
    CALIBER HOME LOANS, INC. 252 6.24% $11,243
    The Huntington National Bank 240 6.46% $11,224
    DHI MORTGAGE COMPANY, LTD. 223 5.55% $8,880
    BAY EQUITY LLC 199 6.73% $13,326
    JPMorgan Chase Bank 186 6.60% $6,465
    EAGLE HOME MORTGAGE, LLC 182 5.42% $10,571
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 164 6.94% $11,380
    COMPASS MORTGAGE, INC. 164 6.69% $13,484
    AMERICAN FINANCIAL NETWORK, INC. 163 7.19% $12,076
    GUILD MORTGAGE COMPANY 159 6.81% $13,071
    Mr. Cooper ( Nationstar Mortgage ) 157 6.16% $13,776
    MUTUAL OF OMAHA MORTGAGE, INC. 155 6.61% $13,201
    Plains Commerce Bank 143 6.36% $14,145
    AMERICAN PORTFOLIO MORTGAGE CORPORATION 142 6.70% $10,133
    BROKER SOLUTIONS, INC. 141 6.75% $11,986
    Nations Lending Corporation 125 6.90% $11,660
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 120 6.79% $11,690
    Carrington Mortgage Services, LLC 118 6.41% $12,214
    GUARANTEED RATE AFFINITY, LLC 118 6.67% $12,969
    LEADERONE FINANCIAL CORPORATION 115 6.77% $11,836
    UNION HOME MORTGAGE CORP. 110 6.99% $12,033
    PLAZA HOME MORTGAGE, INC. 110 6.60% $12,112
    AMERISAVE MORTGAGE CORPORATION 109 6.11% $13,084
    Key Mortgage Services, Inc. 103 6.69% $11,952
    CARDINAL FINANCIAL 103 6.39% $13,104
    Flagstar Bank, FSB 101 6.70% $11,014
    Paramount Residential Mortgage Group, Inc. 93 6.86% $12,727
    OCMBC, INC. 89 7.18% $13,654
    GOLD STAR MORTGAGE FINANCIAL GROUP, CORPORATION 87 6.57% $9,997
    NVR Mortgage Finance, Inc. 83 6.10% $13,136
    DIRECT MORTGAGE LOANS, LLC 82 6.93% $11,438
    TOWNE MORTGAGE COMPANY 77 7.00% $13,386
    GREENSTATE CREDIT UNION 77 6.33% $10,510
    DRAPER AND KRAMER MORTGAGE CORP. 74 6.44% $11,336
    U.S. Bank 68 6.67% $9,404
    Equity Prime Mortgage LLC 66 6.97% $13,643
    GENEVA FINANCIAL, LLC 66 6.68% $14,771
    Ixonia Bank 62 7.30% $12,370
    Fifth Third Bank 61 6.44% $7,030
    SUN WEST MORTGAGE COMPANY, INC. 56 6.63% $11,444
    FIRST COMMUNITY MORTGAGE, INC. 55 7.01% $11,302
    BMO Harris Bank 54 6.56% $10,350
    CIBC Bank USA 52 6.30% $11,837
    M/I FINANCIAL, LLC 50 6.20% $15,235
    HOMESIDE FINANCIAL, LLC 48 7.18% $12,742
    LAKEVIEW LOAN SERVICING, LLC 47 6.23% $10,702
    Associated Bank 46 6.17% $9,588
    Pacor Mortgage Corp 44 6.74% $10,690
    EVERETT FINANCIAL, INC. 44 6.91% $10,464
    Century Mortgage Company DBA Century Lending Company 42 6.65% $13,231
    CMG MORTGAGE, INC. 42 6.76% $12,985
    PROPER RATE, LLC 40 6.67% $13,981
    Prosperity Home Mortgage, LLC 40 6.55% $11,832
    AmeriHome Mortgage Company, LLC 40 6.81% $10,517
    MOVEMENT MORTGAGE, LLC 39 6.59% $13,447
    CIBM Bank 39 6.60% $10,448
    NATIONS RELIABLE LENDING, LLC 38 6.86% $12,463
    Mortgage Research Center, LLC 38 6.72% $8,259
    MICHIGAN MUTUAL, INC. 37 6.81% $12,010
    PLANET HOME LENDING, LLC 35 6.30% $12,810
    GSF Mortgage Corporation 35 6.70% $12,550
    RUOFF MORTGAGE COMPANY, INC. 34 6.87% $5,524
    PRIMELENDING, A PLAINSCAPITAL COMPANY 32 6.68% $11,837
    VILLAGE CAPITAL MORTGAGE 32 6.30% $7,904
    United Fidelity Funding Corp. 32 6.50% $10,044
    THE ANDERSON FINANCIAL GROUP, INC. 31 6.77% $9,133
    University Bank 29 6.02% $11,504
    T2 FINANCIAL LLC 26 6.79% $14,552
    MID AMERICA MORTGAGE, INC. 26 7.38% $8,991
    PNC Bank 26 6.77% $8,535
    NATIONS DIRECT MORTGAGE, LLC 26 6.56% $11,878
    HOMEBRIDGE FINANCIAL SERVICES, INC. 25 6.66% $14,445
    Bank of America 25 6.14% $8,365
    Marquette Bank 25 6.41% $8,681
    ENDEAVOR CAPITAL, LLC. 25 6.76% $10,418
    MLD MORTGAGE INC. 23 6.85% $11,845
    LAND HOME FINANCIAL SERVICES, INC. 22 6.81% $12,829
    POINT Mortgage 22 6.60% $11,778
    Bank of England 22 6.85% $11,031
    ZILLOW HOME LOANS, LLC 22 6.56% $11,789
    UNITED HOME LOANS, INC. 22 6.92% $10,963
    American Mortgage & Equity Consultants, Inc. 21 7.04% $12,249
    PRIMARY RESIDENTIAL MORTGAGE, INC. 21 6.87% $10,050
    Lakeview Community Capital, LLC 21 6.24% $11,063
    CHERRY CREEK MORTGAGE, LLC 20 6.54% $4,073
    LIBERTY HOME MORTGAGE CORPORATION 20 6.72% $15,880
    Wells Fargo Bank 19 6.57% $8,147
    Waterstone Mortgage Corporation 19 6.65% $13,871
    Centier Bank 19 6.99% $6,218
    AMERICAN FINANCIAL RESOURCES, INC. 19 7.08% $12,282
    First National Bank of Omaha 18 6.63% $7,735
    AmRes Corporation 18 6.90% $11,618
    GATEWAY MORTGAGE CORPORATION 18 6.97% $6,963
    Old National Bank 18 6.54% $8,438
    STOCKTON MORTGAGE CORPORATION 18 6.35% $16,533
    BECKAM FUNDING CORP. 17 7.24% $19,916
    Regions Bank 17 6.03% $9,635
    SECURITYNATIONAL MORTGAGE COMPANY 16 7.23% $13,227
    Servion, Inc. 16 6.69% $9,634
    Old Second National Bank 16 6.26% $10,186
    Mortgage Assurance Inc. 16 6.42% $10,184
    Citibank 16 6.02% $11,688
    DAS Acquisition Company, LLC 15 7.08% $13,106
    ACADEMY MORTGAGE CORPORATION 15 6.58% $9,623
    Citizens Bank 15 6.35% $10,653
    ROYAL UNITED MORTGAGE LLC 14 7.11% $12,698
    RAPID MORTGAGE COMPANY 14 6.83% $10,919
    Home State Bank 13 6.95% $9,816
    Platinum Home Mortgage Corporation 13 6.21% $15,417
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 13 6.77% $13,509
    VERITAS FUNDING, LLC 12 6.82% $17,892
    Flanagan State Bank 12 6.60% $9,774
    TOP FLITE FINANCIAL, INC. 11 6.86% $13,386
    PHH Mortgage Corporation 11 6.45% $11,099
    Peoples Bank 11 6.28% $8,451
    AXIA FINANCIAL, LLC 11 6.90% $12,076
    ALAMEDA MORTGAGE CORPORATION 11 7.02% $10,573
    Hometown Equity Mortgage, LLC 11 6.68% $10,458
    M&T Bank 11 6.60% $9,072
    CROWN MORTGAGE COMPANY 11 6.50% $13,899
    MLB RESIDENTIAL LENDING, LLC 11 6.73% $17,809
    NATIONWIDE MORTGAGE BANKERS, INC. 10 7.10% $12,173
    Gold Coast Bank 10 6.42% $12,174
    AMERICAN NATIONWIDE MORTGAGE COMPANY, INC. 10 6.71% $16,183
    First Financial Bank 10 6.23% $8,513
    SUMMIT FUNDING, INC. 10 6.71% $18,775
    SUCCESS MORTGAGE PARTNERS, INC. 9 6.39% $11,970
    EMM LOANS LLC 9 5.82% $14,906
    THE MORTGAGE LINK, INC. 9 7.21% $17,089
    GMFS LLC 9 7.03% $7,369
    MORTGAGE SOLUTIONS OF COLORADO, LLC 9 6.86% $13,741
    JMAC LENDING, INC. 8 6.69% $12,578
    Allied First Bank,sb 8 6.81% $10,343
    Horizon Bank 8 6.33% $7,437
    First Merchants Bank 8 7.06% $7,480
    GVC MORTGAGE, INC. 8 7.23% $8,490
    PANORAMA MORTGAGE GROUP, LLC 7 7.18% $12,598
    TRUSTONE FINANCIAL FEDERAL CREDIT UNION 7 6.14% $6,521
    INSPIRE HOME LOANS INC. 7 5.11% $9,393
    CHURCHILL MORTGAGE CORPORATION 7 6.77% $15,769
    Paramount Bank 7 6.73% $12,097
    NETWORK CAPITAL FUNDING CORPORATION 7 6.05% $9,329
    MYCUMORTGAGE, LLC 7 7.09% $9,854
    HOMESTAR FINANCIAL CORPORATION 7 7.20% $10,014
    Sierra Pacific Mortgage Company, Inc. 6 6.92% $14,099
    FIRST STATE MORTGAGE SERVICES, LLC 6 6.73% $11,702
    GREAT LAKES 6 6.38% $8,925
    FIRST ALLIANCE HOME MORTGAGE, LLC 6 6.71% $14,849
    HALLMARK HOME MORTGAGE, LLC 6 6.98% $7,998
    PENTAGON FEDERAL CREDIT UNION 6 5.94% $9,866
    FIRST MORTGAGE COMPANY, INC. 6 7.42% $11,798
    ARC HOME LLC 5 6.40% $11,639
    AMERICAN FINANCING CORPORATION 5 6.25% $11,379
    NFM, INC. 5 6.33% $15,653
    First Savings Bank 5 6.03% $13,226
    LAKE MORTGAGE COMPANY INC 5 7.08% $8,598
    PULTE MORTGAGE LLC 5 6.15% $12,037
    DEVELOPER'S MORTGAGE COMPANY 4 7.41% $13,114
    MIDLAND MORTGAGE CORPORATION 4 6.88% $13,129
    LOANPAL, LLC 4 6.06% $8,320
    Ameris Bank 4 6.38% $12,760
    Evolve Bank & Trust 4 6.91% $16,868
    First Federal Bank 4 6.91% $12,637
    LADERA LENDING, INC. 4 6.56% $8,124
    NBKC BANK 4 5.94% $9,636
    CITY FIRST MORTGAGE SERVICES, L.L.C. 4 7.25% $9,937
    Northpointe Bank 4 5.75% $18,757
    RELIANCE FIRST CAPITAL, LLC 4 6.56% $11,736
    Residential Mortgage Solutions, Inc. 4 6.71% $10,838
    BETTER MORTGAGE CORPORATION 4 6.59% $10,976
    POLARIS HOME FUNDING CORP. 4 6.91% $11,522
    MEMBER FIRST MORTGAGE, LLC 3 6.33% $9,753
    Byline Bank 3 6.33% $11,710
    Cornerstone First Mortgage, Inc 3 6.29% $17,961
    Bell Bank 3 5.92% $14,928
    First Federal Savings Bank 3 6.29% $7,163
    A + MORTGAGE SERVICES, INC. 3 5.71% $10,661
    Chicago Mortgage Solutions LLC 3 6.42% $11,804
    The Loan Store, Inc. 3 7.16% $13,391
    TruHome Solutions, LLC 3 6.04% $11,020
    ALLIED MORTGAGE GROUP, INC. 3 6.50% $12,374
    AHL FUNDING 3 6.63% $12,818
    HOMESTEAD FUNDING CORP. 3 5.83% $11,113
    Bank Five Nine 3 6.17% $9,198
    ROSS MORTGAGE CORPORATION 3 6.75% $11,258
    Wyndham Capital Mortgage, Inc. 2 6.31% $11,177
    ENVOY MORTGAGE, LTD 2 5.88% $11,843
    Midland States Bank 2 7.50% $12,121
    DELMAR FINANCIAL COMPANY 2 6.69% $9,729
    MJW Financial LLC 2 6.81% $9,153
    MORTGAGE ACCESS CORP. 2 6.00% $15,040
    CONTOUR MORTGAGE CORPORATION 2 5.75% $11,393
    NexBank 2 5.31% $14,489
    NORWICH COMMERCIAL GROUP, INC. 2 6.94% $14,140
    OPEN MORTGAGE, LLC 2 7.56% $13,745
    Chickasaw Community Bank 2 6.25% $15,842
    CALCON MUTUAL MORTGAGE LLC 2 6.00% $20,869
    PREMIA MORTGAGE, LLC 2 6.37% $11,327
    BAYSHORE MORTGAGE FUNDING, LLC 2 7.63% $13,961
    Assurance Financial Group, L.L.C. 2 7.00% $25,887
    SIRVA MORTGAGE, INC. 2 6.44% $7,096
    TOTAL MORTGAGE SERVICES, LLC 2 7.31% $7,921
    AMCAP MORTGAGE, LTD. 2 6.69% $15,248
    VAN DYK MORTGAGE CORPORATION 2 6.81% $11,821
    Goldwater Bank, N.A. 1 6.75% $16,675
    NEW WAVE LENDING GROUP INC 1 7.38% $10,319
    Semper Home Loans, Inc. 1 5.75% $17,296
    CITYWIDE HOME LOANS, LLC 1 6.75% $11,718
    Colonial Savings, F.A. 1 6.50% $14,189
    Advisors Mortgage Group, L.L.C. 1 7.25% $7,592
    CORNERSTONE HOME LENDING, INC. 1 7.25% $15,297
    Strong Home Mortgage, LLC 1 6.25% $14,608
    CRESCENT MORTGAGE COMPANY 1 7.38% $18,322
    MORTGAGE CENTER L.C 1 7.13% $6,044
    Sunflower Bank 1 4.63% $12,280
    MORTGAGE 1 INCORPORATED 1 7.63% $10,674
    MORIA DEVELOPMENT, INC. 1 7.13% $13,399
    Texana Bank 1 7.25% $18,130
    AMERITRUST MORTGAGE CORPORATION 1 7.63% $8,729
    Midwest Mortgage Associates Corporation 1 7.13% $11,795
    Mid-Continent Funding, Inc. 1 6.75% $4,326
    East Coast Capital Corp. 1 6.50% $14,764
    EMBRACE HOME LOANS, INC. 1 7.13% $11,461
    THOMPSON KANE & COMPANY, LLC 1 6.75% $12,984
    Loan Simple, Inc. 1 6.25% $23,221
    FORUM Credit Union 1 6.75% $7,447
    Encompass Lending Group, LP 1 7.25% $12,351
    LENOX FINANCIAL MORTGAGE CORPORATION 1 7.13% $8,257
    Truist 1 6.70% $4,921
    Kwik Mortgage Corporation 1 6.75% $14,013
    American Mortgage Bank, LLC 1 6.25% $18,453
    UNITED 1 7.13% $8,449
    First Federal Savings and Loan Association of Lakewood 1 6.75% $11,935
    American Bank and Trust Company 1 6.25% $13,886
    FLAT BRANCH MORTGAGE, INC. 1 6.75% $17,490
    FIRST INTEGRITY MORTGAGE SERVICES, INC. 1 5.88% $3,342
    First Internet Bank of Indiana 1 5.75% $12,884
    US MORTGAGE CORPORATION 1 7.63% $14,334
    VANDERBILT MORTGAGE AND FINANCE, INC. 1 5.75% $13,127
    WISCONSIN MORTGAGE CORPORATION 1 7.25% $6,701
    ABSOLUTE HOME MORTGAGE CORPORATION 1 7.25% $17,335
    First Option Mortgage, LLC 1 5.63% $8,311
    V.I.P. MORTGAGE, INC. 1 5.75% $10,045
    Princeton Mortgage Corporation 1 6.63% $8,734
    RESIDENTIAL BANCORP 1 6.50% $9,020
    BAY-VALLEY MORTGAGE GROUP 1 6.50% $9,418
    Blackhawk Bank 1 6.25% $9,642
    Busey Bank 1 6.13% $12,115

    The top Chicago FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 1,376 FHA loans originated. Their average total fees are $11,023, which is $2,374 lower than the next largest lender, UNITED WHOLESALE MORTGAGE, LLC.

    The lowest fee Chicago FHA lenders (with over 10 loans originated) are CHERRY CREEK MORTGAGE, LLC ($4,073), RUOFF MORTGAGE COMPANY, INC. ($5,524), Centier Bank ($6,218), JPMorgan Chase Bank ($6,465) and GATEWAY MORTGAGE CORPORATION ($6,963).

    The lowest rate Chicago FHA lenders (with over 10 loans originated) are EAGLE HOME MORTGAGE, LLC (5.42%), DHI MORTGAGE COMPANY, LTD. (5.55%), Citibank (6.02%), University Bank (6.02%) and Regions Bank (6.03%).

    Chicago FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI COOK 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI DEKALB 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI DUPAGE 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI GRUNDY 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KANE 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KENDALL 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI LAKE 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI MCHENRY 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI WILL 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI JASPER 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI LAKE 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI NEWTON 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI PORTER 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KENOSHA 2022 $420,680 $538,650 $651,050 $809,150
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI COOK 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI DEKALB 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI DUPAGE 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI GRUNDY 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KANE 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KENDALL 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI LAKE 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI MCHENRY 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI WILL 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI JASPER 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI LAKE 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI NEWTON 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI PORTER 2023 $472,030 $604,400 $730,525 $907,900
    CHICAGO-NAPERVILLE-ELGIN, IL-IN-WI KENOSHA 2023 $472,030 $604,400 $730,525 $907,900

    FHA Loan Requirements

  • Borrowers must have a steady employment history or worked for the same employer for the past two years.
  • Borrowers must have a valid Social Security number, lawful residency in the U.S. and be of legal age to sign a mortgage in your state.
  • Borrowers must pay a minimum down payment of 3.5 percent. The money may be gifted by a family member. (Traditional mortgages do not permit gifted down payments)
  • New FHA loans are only available for primary residence occupancy.
  • Borrowers must have a property appraisal from a FHA-approved appraiser.
  • Borrowers’ front-end ratio (mortgage payment plus HOA fees, property taxes, mortgage insurance, homeowners insurance) needs to be less than 31 percent of their gross income, typically. You may be able to get approved with as high a percentage as 40 percent. Your lender will be required to provide justification as to why they believe the mortgage presents an acceptable risk. The lender must include any compensating factors used for loan approval.
  • Borrowers’ debt to income ratio (mortgage plus all your monthly debt, i.e., credit card payment, car payment, student loans, etc.) needs to be less than 43 percent of their gross income, typically. You may be able to get approved with as high a percentage as 50 percent.
  • Borrowers must have a minimum credit score of 580 for maximum financing with a minimum down payment of 3.5 percent.
  • Borrowers must have a minimum credit score of 500-579 for maximum LTV of 90 percent with a minimum down payment of 10 percent.
  • Bborrowers must be two years out of bankruptcy and have re-established good credit. Exceptions can be made.
  • Typically borrowers must be three years out of foreclosure and have re-established good credit.
  • The purchased property must meet certain minimum standards at appraisal. If the home you are purchasing does not meet these standards and a seller will not agree to the required repairs, your only option is to pay for the required repairs at closing (to be held in escrow until the repairs are complete).