FHA Loan Mortgage Calculator for Illinois (2022 Data)

Written by Elizabeth BoydApril 28th, 20233 minute read

Jump to section: FHA loan calculator for Illinois | FHA loan requirements for Illinois | How to calculate your Illinois FHA loan amount | FAQ

FHA Loan Mortgage Calculator for Illinois

This Illinois FHA loan calculator lets you estimate your FHA loan amount and monthly mortgage payments. You can borrow up to $420,680 for a single-family home in Illinois with a traditional FHA loan. You can also use this tool to calculate a jumbo FHA loan, which exceeds that maximum.

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FHA loan calculator for Illinois

FHA loan requirements for Illinois

Under the FHA program, the government insures the loan amount and sets rules for eligibility. Government-approved FHA lenders must conform to those requirements, and some lenders establish additional standards.

A credit score of at least 500. With a 10% down payment, you can qualify with a credit score of 500–579. To get the minimum down payment, your score must be 580 or higher.

3.5% down payment. You can qualify for a 3.5% down payment with a credit score of 580 but must pay at least 10% with a lower score. However, your score must not be below 500.

43% debt-to-income (DTI) ratio. Ideally, your total debt should be no higher than 43% of your gross income. However, some FHA lenders will consider borrowers with a 50%–57% DTI. Your estimated FHA mortgage payments should represent less than 41% of your gross monthly earnings.

Stable employment. Borrowers should have a stable, verifiable employment history in the same or similar line of work spanning two years before applying.

Property requirements. FHA loans apply to residential dwellings with one to four units. The single-family home or one of the units in a multi-dwelling residence must be your primary residence for at least a year after purchase.

Appraisal. The property must meet strict home inspection and appraisal standards. The appraisal examines the property’s condition and habitability and assesses the market value for loan purposes.

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How to calculate your Illinois FHA loan amount

Down payment

The minimum down payment is either 3.5% with a credit score of 580, but a lower credit score requires a 10% down payment. Seller-covered down payments up to 6% of the home sale price or gift funds with proper documentation are permitted.

Mortgage insurance premiums (MIPs)

Illinois FHA loans have a funding fee obligation. This limits the risk lenders face with such low down payment requirements. FHA funding feesconsist of two kinds of mortgage insurance:

  • Upfront mortgage insurance premium (UFMIP). 1.75% of the loan amount due at closing.
  • Annual mortgage insurance premiums (MIP). This is a monthly expense, typically costing 0.45-1.05% depending on the loan amount and term.

💡 When do MIP payments end? If your down payment is only 3.5%, you’ll have MIP payments for the life of your loan. For FHA borrowers who put 10% or more down, the MIP obligation ends after 11 years of making timely mortgage payments.

Maximum FHA mortgage amount

FHA loan limits typically vary by state, county, and the number of units. However, the maximum loan amounts in Illinois are the same in all 102 counties, only differing by size.

  • Single-family home: $420,680
  • Two units: $538,650
  • Three units: $651,050
  • Four units: $809,150

These limits are reassessed every year.

Annual real estate taxes

Illinois property taxes vary based on an equalized assessed home value and tax district funding requirements. The Illinois average property tax rate is 2.16%. FHA lenders collect property taxes from you at closing to cover the time left in the year after the purchase. The seller covers any unpaid balance for the time they owned the home.

The taxes you pay go into an escrow account to cover the tax bill when it comes due. Your monthly mortgage payment also includes pro-rated taxes budgeted for new annual property tax bills.

Annual homeowners insurance

Annual homeowners insurance premiums average $1,000-$2,050 in Illinois. You'll pay for 12 months of homeowners insurance upfront when you buy your home. You may also need to hand over a two-month “cushion” that your lender will put in an escrow account. Moving forward, you’ll pay monthly installments as part of your mortgage.

» MORE: Illinois FHA Loan Calculator

Illinois FHA loan FAQ

The most you can borrow with an FHA loan in Illinois is $420,680, which is for a single-family home. These limits are different for multi-unit residences.

  • two-unit: $538,650
  • triplex:$651,050
  • four-unit $809,150

A jumbo loan in Illinois exceeds the maximum conforming mortgage amount for your county. For FHA loans, borrowing more than $420,680 is considered a jumbo loan. Typically, you’ll need a higher credit score to qualify for a jumbo loan, and other criteria are also stricter.

>>MORE: Compare FHA loans and conventional loans