This ARTICLE On What Are The FHA Loan Limits For One To Four Unit Properties In Illinois Was PUBLISHED On May 11th, 2020
FHA Loan Limits for one to four unit properties depends on the particular county the property is located as well as the type of housing.
- FHA Loan Limits for two to four unit properties have higher loan limits than single family properties such as single family homes, condominiums, and town homes
- Illinois is somewhat different than any other states for home buyers
- Property taxes are paid in arrears in Illinois and home buyers will get property tax prorations by home sellers when buying a home
In this article, we will discuss and cover What Are The FHA Loan Limits For One To Four Unit Properties In Illinois.
Maximum Loan Amount Home Buyers Can Borrow
Home buyers considering buying a home in Illinois with a government or Conventional Loan, there are maximum loan limits they can borrow.
- In this article, we will discuss FHA Loan Limits for one to four unit properties
- We will also discuss and cover the maximum amount a home buyer can borrow with a FHA Loan for a home purchase in Illinois
- FHA Loan Limits for one to four unit properties are the amount of home loan a borrower can borrow using a FHA Loan
- HUD, the parent of the Federal Housing Administration sets the FHA Loan Limits for one to four unit properties depending on the county the property is located
- FHA Loan Limits for one to four unit properties is not the same throughout Illinois
- The state of Illinois consists of a total of 102 counties
- Illinois has three separate FHA Loan Limits
- Home buyers who plan on purchasing higher priced homes with FHA Loans in Illinois should check what the maximum loan limits for the county they plan on making a home purchase offer
FHA Loan Limits For One To Four Unit Properties In Chicago And Surrounding Suburbs
The City of Chicago the second largest city in the United States and the biggest city in the state of Illinois. Homes in the city of Chicago and suburbs are priced higher than the rest of Illinois. HUD realizes the fact that Chicago and its surrounding counties have much higher home values so they consider it a high cost area where FHA Loan Limits are substantially higher than the rest of the state. Chicago and its surrounding counties have FHA Loan Limits capped at $368,000 for single family units. single family units are the following:
- Single Family Homes
- FHA approved condominiums
- Townhomes
Here are the following counties with FHA Loan Limits Illinois of $368,000 for single family homes:
- Cook County
- McHenry County
- DeKalb County
- Kendall County
- Grundy County
- DuPage County
- Will County
- Lake County
- Kane County
Cook County is the home of the City of Chicago and by far the most populous county in Illinois. Cook County has the highest concentration of two to four unit properties out of all counties in Illinois.
Boone County And Winnebago County Illinois
Two Illinois counties in northern Illinois bordering the state of Wisconsin are the following:
- Winnebago County
- Boone County
- Boone County and Winnebago County are sister Illinois counties because they are next to each other
- FHA Loan Limits in Boone County Illinois and Winnebago County Illinois is capped at $339,250 on single family units
FHA Loan Limits Of Remaining Counties Of Illinois
Illinois has 102 Counties and the remaining 91 counties of Illinois has the standard FHA Loan Limit of $331,760 on single family homes, condos, and town homes.
- Two to four unit properties have higher loan limits
- FHA is does not lend to borrowers. FHA’s function is to insure mortgage loans that meet FHA Guidelines to lenders who originate and lend home loans that meet FHA Guidelines in the event borrowers default on their FHA Loans and go into foreclosure
FHA Loan Limits For One To Four Unit Properties On All Illinois Counties
Below are the nine highest cost areas of Illinois:
- For the above nine counties the loan limit for a single family unit is $368,000
- For the above nine counties surrounding Chicago, the FHA Loan Limit For a two unit property is $471,100
- For the above nine counties surrounding Chicago, the FHA Loan Limit For a three unit property is $569,450
- For the above nine counties bordering Chicago, the FHA Loan Limit For a four unit property is $707,700
- Cook County
- McHenry County
- DeKalb County
- Kendall County
- Grundy County
- DuPage County
- Will County
- Lake County
- Kane County
Below are the two medium cost areas of Illinois
- For the above nine counties the loan limit for a single family unit is $368,000
- For the above nine counties surrounding Chicago, the FHA Loan Limit For a two unit property is $471,100
- For the above nine counties surrounding Chicago, the FHA Loan Limit For a three unit property is $569,450
- For the above nine counties surrounding Chicago, the FHA Loan Limit For a four unit property is $707,700
- Boone County
- Winnebago County
Below are the rest of the counties of Illinois and their FHA Loan Limits For One To Four Unit Properties
- The loan limit for a single family unit is $331,760
- FHA Loan Limit For a two unit property is $424,800
- FHA Loan Limit For a three unit property is $513,450
- FHA Loan Limit For a four unit property is $638,100
- Adams County
- Alexander County
- Bond County
- Brown County
- Bureau County
- Calhoun County
- Carroll County
- Cass County
- Champaign County
- Clay County
- Christian County
- Clark County
- Clinton County
- Coles County
- Crawford County
- Cumberland County
- DeWitt County
- Douglas County
- Edgar County
- Edwards County
- Effingham County
- Fayette County
- Ford County
- Franklin County
- Fulton County
- Gallatin County
- Greene County
- Hancock County
- Hamilton County
- Hardin County
- Henderson County
- Henry County
- Iroquois County
- Jackson County
- Jasper County
- Jefferson County
- Jersey County
- Jo Daviess County
- Johnson County
- Kankakee County
- Knox County
- LaSalle County
- Lawrence County
- Lee County
- Lincoln County
- Logan County
- Livingston County
- Macon County
- Macomb County
- Macoupin County
- Madison County
- Massac County
- Marion County
- Marshall County
- Mason County
- McDonough County
- McLean County
- Menard County
- Mercer County
- Monroe County
- Montgomery County
- Morgan County
- Moultrie County
- Ogle County
- Peoria County
- Perry County
- Pike County
- Platt County
- Pope County
- Putnam County
- Pulaski County
- Randolph County
- Rock Island County
- Saline County
- Sangamon County
- Schyler County
- Scott County
- Shelby County
- St. Clair County
- Stark County
- Stephenson County
- Tazewell County
- Union County
- Vermilion County
- Wabash County
- Warren County
- Washington County
- Wayne County
- White County
- Whiteside County
- Williamson County
- Woodford County
Qualifying For 2 To 4 Unit FHA Mortgage Loans
Chicago has the most concentration of two to four unit properties. Buying a two to four unit property as an owner occupant property is allowed with 3.5% down payment.
Here is the FHA Loan qualification requirements for 2 to 4 unit property mortgage loans
- 3.5% down payment
- 580 credit scores
- All FHA Guidelines applies
- 6% sellers concessions allowed by sellers for buyer’s closing costs
- Reserves may be required
- 85% of rental income can be used as qualifying income
- Conventional Loans require 15% down payment on owner occupant 2 to 4 unit mortgage loans
Buyers of 2 to 4 unit properties can contact Gustan Cho Associates at 800-900-8569 or text us for a faster response to get qualified for 2 to 4 unit mortgage loans . Borrowers can also email their mortgage inquiry at gcho@gustancho.com.
