FHA Loan Limit In Chicago And Suburbs Versus Other Counties


This BLOG On FHA Loan Limit In Chicago And Suburbs Versus Other Counties Was UPDATED On June 2nd, 2019

The Federal Housing Administration, FHA, is a subsidiary of the United States Housing and Urban Development (HUD). HUD is in charge of setting FHA Loan Limits throughout the United States. At the beginning of 2019, HUD increased FHA Loan Limit to $314,814  for most areas of the United States unless the property is located in a high-cost area.

  • Most counties in California are in high cost areas
  • The maximum FHA loan limit for high-cost counties in California is $726,525
  • There are counties in many states where the FHA Loan Limit is higher than the standard $314,827
  • Illinois is one of them
  • FHA announced that the FHA Loan Limit for 2019 will increase to $314,827
  • Buyers looking for a higher priced home with higher than $314,827 in a particular geographical region, check to see what the maximum FHA loan limit is for that particular county
  • Any loan officer can look it up
  • For example, the maximum FHA loan limit in Sarasota, County Florida is $314,827
  • FHA loan limit is much higher in Palm Beach County, Broward County, and Miami Dade County

FHA Loan Limit For Chicago And Surrounding Counties

FHA Loan Limits in most areas of Illinois is $314,827 except for the metropolitan and surrounding counties of Chicago. Chicago and Surround Counties have higher FHA Loan Limits of $368,000.

The following counties have FHA Loan Limits of $368,000 for single family homes:

  • Cook County
  • Lake County
  • DuPage County
  • Kane County
  • McHenry County

These areas have a maximum FHA Loan Limit of $368,000.

Conventional Loan Limits

The Federal Housing Finance Agency (FHFA) the government regulatory agency that regulated Fannie Mae and Freddie Mac has to increase conforming loan limits for two years in a row. Conventional Loan Limits increase to $484,350 starting in January 2019.

  • Conventional Loan Limits is now capped at $484,350
  • However, there are areas of the United States where the conventional loan limit is higher than the standard $484,350
  • Many areas in California such as
    • San Diego
    • LaJolla
    • San Francisco
    • San Jose
    • Los Angeles
    • Torrance
    • Irvine
    • Santa Monica
    • Palm Springs
    • Monterey
    • Sacramento
    • Lake Tahoe
    • Santa Barbara
    • Riverside
    • Davis
    • Burbank
    • Hollywood
    • Beverly Hills
    • Oakland
    • Anaheim
  • and dozens of other California counties have conventional loan limits that are much higher than the $484,350 standard conventional lending limits

California has one of the highest housing prices in the United States.

Illinois Loan Limit Caps

Illinois’s Chicago metropolitan areas of Cook County, Lake County, DuPage County, McHenry County, and Kane County has higher Loan Limits than the standard $314,827

  • Cook County, Lake County, DuPage County, McHenry County, and Kane County’s maximum FHA loan limits are capped at $368,000
  • This is because homes in these areas are classified as high-cost areas per the U.S. Department of Housing and Urban Development, the parent of FHA
  • The $368,000 FHA Loan Limit cap is for single family homes
  • Two to four unit owner occupant homes have higher FHA Loan Limit caps

What If I Need To Purchase A Higher Price Home?

I run into situations where home buyers need a higher mortgage than the FHA loan lending limit.

  • Two choices here
  • The home buyer can see if they can qualify for a conventional loan
  • Conforming Loan Limits is higher than FHA
  • Maximum conforming limits is $484,350
  • If home buyers need a higher loan amount, they need to put a larger down payment on their home purchase
  • Buyers can also explore non-QM loans where there is no loan limit caps
  • A home buyer can purchase a $371,050 home but if they can only qualify with an FHA loan where the FHA loan limit is $294,515 then they would have to put a $100,000 down payment

NON-QM Loans With No Loan Limit Caps

Gustan Cho Associates Mortgage Group offers non-QM loans and bank statement loans for self-employed borrowers.

  • There is no waiting period after housing event with non-qm loans
  • There are no loan limits with non-QM loans
  • However, 10% to 20% down payment is required
  • Mortgage rates are generally 1.0% to 2.0% higher than traditional government and conventional agency loan programs
  • Bank Statement Loans for self employed borrowers do not require income tax returns
  • 24 months bank statement deposits are averaged to derive monthly income
  • Either 24 months personal or business bank statements are averaged and the monthly average deposits is the gross income
  • 10% to 20% down payment is required
  • Amount of down payment required on non-QM and bank statement loans depends on borrowers credit scores
  • Both loan programs do not have loan limit caps

Qualifying for a conventional loan is tougher than an FHA loan for home buyers with higher debt to income ratios, low credit scores, and prior bad credit.  Please contact me at gcho@gustancho.com or call me at 262-716-8151 if you need a home loan and see which loan program is the best for you. Text us for faster response.

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