Best FHA Lenders in Illinois 2026: Top 7 Ranked & Reviewed
Daniel Cooper
Illinois FHA Specialist | 12+ Years Experience
January 22, 2026
Looking for the best FHA lenders in Illinois? Illinois has 2,100+ FHA-approved lenders, but only 7 consistently deliver the best rates, fastest approvals, and lowest fees for Illinois buyers.
6.20%
Average FHA Rate
$285,000
Median Home Price
21.8%
FHA Market Share
22 days
Avg Approval
🏆 Top 7 FHA Lenders in Illinois 2026
Rocket Mortgage - Best Overall FHA Lender Illinois
10,200+ IL loans funded
Why #1:
- 🚀 Fastest online application (8 minutes)
- 💰 Competitive rates: 6.10%-6.30% APR
- ⚡ Close in 22 days average
- 📱 Best mobile app for Illinois borrowers
- 🏆 #1 FHA lender in Chicago metro
Best For:
Tech-savvy Illinois buyers who want speed + convenience
📊 FHA Loan Limits Illinois 2026 by County
| County | Major City | 2026 FHA Limit |
|---|---|---|
| Cook | Chicago | $644,000 ⭐ |
| DuPage | Naperville | $644,000 ⭐ |
| Kane | Aurora | $498,257 |
| Will | Joliet | $498,257 |
🎉 Great News for Chicago Buyers!
Cook and DuPage counties have higher FHA limits of $644,000 (2026). This means you can buy homes up to $644K with just 3.5% down ($22,540)!
✅ Illinois FHA Loan Requirements 2026
Basic Requirements
Credit Score:
580+ for 3.5% down | 500-579 for 10% down
Down Payment:
3.5% minimum ($17,430 on $498K home)
DTI Ratio:
43% max (50% with compensating factors)
Employment:
2 years stable employment history
Illinois-Specific Info
Property Taxes:
2.08% avg (2nd highest in US)
Closing Costs:
2-5% of purchase price ($10K-$25K on $498K)
MIP:
1.75% upfront + 0.55% annual
Appraisal:
FHA-approved appraiser required ($500-$700)
❓ FAQ: FHA Loans Illinois 2026
What is the FHA loan limit in Illinois?
Illinois FHA Loan Limits (2026):
- High-cost counties (Cook, DuPage): $644,000
- Standard counties (most of Illinois): $498,257
This is the maximum home price you can buy with an FHA loan in Illinois.
Can I buy a condo with an FHA loan in Chicago?
YES - but the condo building must be FHA-approved.
Check if your Chicago condo is FHA-approved:
- Search the HUD Approved Condo List
- Ask your real estate agent
- Contact the condo association
Many Chicago high-rises and condo buildings are FHA-approved. If not, the building can apply for approval (takes 30-60 days).
How much are property taxes with an FHA loan in Illinois?
Illinois has the 2nd highest property taxes in America:
Example: $498,000 home
- Chicago (Cook County): $10,360/year (2.08%)
- Naperville (DuPage County): $11,450/year (2.30%)
- Aurora (Kane County): $9,460/year (1.90%)
Property taxes are included in your monthly mortgage payment (PITI).