Ottawa FHA Loan Rates, Closing Costs & Stats

Ottawa, IL

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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.

    Ottawa's 61 lenders originated 257 FHA loans during 2024. The total origination value was $45,405,000, with an average FHA loan value of $176,673.

    Ottawa FHA Loans, 30 Year Fixed Rates

    30 Year FHA mortgages in Ottawa averaged 6.78% for the week of 2025-04-04, compared to the national average (all FHA variants) of 6.259% for the same period.

    Ottawa's average FHA mortgage closing costs are $6,568.

    The average rate for the prior week (2025-03-28) was 6.67% and one month ago for the week of 2025-02-28, the average rate was 6.86%.

    The average rate one year ago was 6.88%.

    For refis of the same type during the week of 2025-04-04, the average rate was 6.26%.

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

    Ottawa 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 Ottawa level.

    Name # of Loans 2024 Avg. 30yFix Rate 2024 Avg. Closing Costs
    QUICKEN LOANS, LLC 42 6.51% $8,166
    LOANDEPOT.COM, LLC 32 6.79% $8,858
    CROSSCOUNTRY MORTGAGE, LLC 12 6.60% $9,490
    United Community Bank 9 6.53% $5,279
    GUARANTEED RATE, INC. 9 6.94% $8,895
    GUILD MORTGAGE COMPANY 9 6.85% $8,414
    UNITED WHOLESALE MORTGAGE, LLC 8 6.44% $10,383
    PENNYMAC LOAN SERVICES, LLC 6 6.19% $9,468
    Midland States Bank 5 6.80% $6,065
    Barrington Bank & Trust Company, N.A. 4 6.72% $7,068
    FIRST STATE MORTGAGE SERVICES, LLC 4 6.66% $7,658
    Mr. Cooper ( Nationstar Mortgage ) 4 7.03% $11,022
    FAIRWAY INDEPENDENT MORTGAGE CORPORATION 4 7.06% $7,287
    BROKER SOLUTIONS, INC. 3 7.04% $8,621
    FLAT BRANCH MORTGAGE, INC. 3 6.88% $7,847
    Old Second National Bank 3 6.46% $8,433
    AMERICAN PACIFIC MORTGAGE CORPORATION 3 6.79% $8,190
    Flagstar Bank, FSB 3 6.08% $8,000
    DIAMOND RESIDENTIAL MORTGAGE CORPORATION 3 6.67% $6,419
    NEWREZ LLC 3 6.88% $10,393
    RANLIFE, INC. 2 5.25% $11,026
    Mortgage Research Center, LLC 2 6.63% $5,895
    Equity Prime Mortgage LLC 2 6.56% $7,188
    Pacor Mortgage Corp 2 6.38% $10,060
    CARDINAL FINANCIAL 2 6.50% $8,771
    Carrington Mortgage Services, LLC 2 6.00% $11,996
    LEADERONE FINANCIAL CORPORATION 2 6.94% $8,839
    THE ANDERSON FINANCIAL GROUP, INC. 2 6.88% $8,376
    The Federal Savings Bank 2 5.50% $12,476
    Flanagan State Bank 2 6.75% $6,913
    U.S. Bank 2 6.44% $7,717
    FREEDOM MORTGAGE CORPORATION 2 6.94% $5,627
    GREENSTATE CREDIT UNION 2 6.62% $4,964
    Ixonia Bank 2 7.38% $9,897
    VILLAGE CAPITAL MORTGAGE 1 7.25% $4,498
    AMERICAN FINANCIAL NETWORK, INC. 1 7.13% $10,331
    AMERICAN FINANCING CORPORATION 1 5.25% $7,488
    AMERICAN NEIGHBORHOOD MORTGAGE ACCEPTANCE COMPANY LLC 1 6.00% $10,480
    AMERISAVE MORTGAGE CORPORATION 1 5.75% $16,551
    ARK-LA-TEX FINANCIAL SERVICES, LLC. 1 7.63% $13,595
    CALCON MUTUAL MORTGAGE LLC 1 6.13% $8,862
    Century Mortgage Company DBA Century Lending Company 1 6.99% $7,081
    CIBM Bank 1 6.63% $5,928
    Cornerstone First Mortgage, Inc 1 6.63% $9,597
    First Federal Bank 1 6.75% $11,595
    First National Bank of Omaha 1 7.00% $6,413
    Fortress Bank 1 7.63% $7,401
    Heartland Bank and Trust Company 1 5.75% $5,710
    JPMorgan Chase Bank 1 5.99% $4,034
    LAKEVIEW LOAN SERVICING, LLC 1 5.99% $10,828
    MID AMERICA MORTGAGE, INC. 1 7.13% $6,277
    MUTUAL OF OMAHA MORTGAGE, INC. 1 5.75% $10,498
    Old National Bank 1 5.63% $5,185
    PLANET HOME LENDING, LLC 1 5.99% $6,297
    PLAZA HOME MORTGAGE, INC. 1 7.25% $9,736
    POINT Mortgage 1 6.49% $8,284
    PREMIA MORTGAGE, LLC 1 7.10% $4,720
    The Huntington National Bank 1 6.75% $8,566
    THE MORTGAGE LINK, INC. 1 6.75% $16,166
    TOWNE MORTGAGE COMPANY 1 5.49% $6,622
    ALLIANT CREDIT UNION 1 6.63% $11,200

    The top Ottawa FHA lender as defined by loan originations is QUICKEN LOANS, LLC, with 42 FHA loans originated. Their average total fees are $8,166, which is $692 lower than the next largest lender, LOANDEPOT.COM, LLC.

    The lowest fee Ottawa FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC ($8,166), LOANDEPOT.COM, LLC ($8,858), CROSSCOUNTRY MORTGAGE, LLC ($9,490), .

    The lowest rate Ottawa FHA lenders (with over 10 loans originated) are QUICKEN LOANS, LLC (6.51%), CROSSCOUNTRY MORTGAGE, LLC (6.60%), LOANDEPOT.COM, LLC (6.79%), .

    Ottawa FHA Loan Limits

    Metro County Year Single Family Limit 2 Family Limit 3 Family Limit 4 Family Limit
    OTTAWA, IL BUREAU 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL LASALLE 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL PUTNAM 2022 $420,680 $538,650 $651,050 $809,150
    OTTAWA, IL BUREAU 2023 $472,030 $604,400 $730,525 $907,900
    OTTAWA, IL LASALLE 2023 $472,030 $604,400 $730,525 $907,900
    OTTAWA, IL PUTNAM 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).