FHA loans are home loans insured by the FHA (Federal Housing Administration) which give Illinois borrowers the opportunity to secure home loans when they don't quality for other conventional loans. For example, prospective Illinois homeowners with little credit history or poor credit history are sometimes able to qualify for FHA loans.
Illinois FHA Loans for First-Time Homeowners
FHA loans are ideal for first-time Illinois homeowners due to low down-payment requirements and flexible qualifying guidelines.
Refinancing with FHA Loans in Illinois
FHA also offers a refinancing option for Illinois homeowners where it's possible to refinance up to 97.5% of your home’s value. Additionally, there’s also an option for FHA cash-out refinance of up to 85%.
FHA Loan Requirements - Illinois
- No income limit
- Borrower credit score flexibility
- 3.5% down payment on Purchase Loans
- Bankruptcy: IL FHA loans can be obtained as soon as 2 years after Chapter 7 discharge (assuming good credit history since)
- Foreclosures: An FHA loan can be obtained as early as 3 years after the final date of foreclosure (assuming good credit history since)
Illinois FHA Loan Limits
FHA loan limits in Illinois vary based on a number of criteria, including the specific location (county), number of units in the property (up to 4-unit properties), etc. Please contact Home Point Financial's Illinois FHA loan experts for details on loan limits.