FHA Loans in Illinois, Texas, Florida & Georgia
Last updated September 21, 2026
An FHA loan gets you into a home with as little as 3.5% down and more flexibility on credit history than a conventional loan asks for. It's not free — you'll carry mortgage insurance for most or all of the loan — but for a lot of first-time buyers it's the loan that actually closes.
This is not a commitment to lend. Rates, terms, and programs subject to change without notice. All loans subject to credit approval.
FHA Details That Change by State
Choose your state to see the local issues we check before your file reaches underwriting.
FHA Loans in Illinois
We close FHA loans across the Chicago suburbs and DuPage, Cook, Will, and Kane counties from our Naperville office. Most Illinois counties sit at the FHA floor limit of $541,287 for a single-unit home in 2026 — plenty of room for the starter homes and condos first-time buyers in this market are looking at.
Illinois FHA borrowers ask us most often about condo approval. Not every building is FHA-eligible, so we check before you fall in love with a unit. We also help borrowers document gift funds from family for the down payment.
Why Buyers Choose an FHA Loan
A lower entry point, practical credit flexibility, and more ways to cover the cash needed at closing.
3.5% down payment
With a credit score of 580 or higher, you put down 3.5%. Below 580 down to 500, FHA still works, but the down payment requirement moves to 10%.
Flexible on credit history
Past bankruptcy, foreclosure, or a thin credit file don't automatically disqualify you the way they can with a conventional loan. Waiting periods apply, and we'll tell you exactly where you stand before you apply.
Seller can cover up to 6% of your costs
FHA allows seller concessions up to 6% of the purchase price toward closing costs and prepaids — more room to negotiate than most conventional programs allow.
100% of your down payment can be a gift
Family can gift the entire down payment and closing costs, documented with a simple gift letter. No seasoning games required.
FHA vs. conventional vs. VA
| Feature | FHA | Conventional | VA |
|---|---|---|---|
| Minimum down payment | 3.5% with 580+ score; 10% with 500–579 | 3%–5% with 620+ | $0 for eligible veterans and service members |
| Minimum credit score | 500 | 620 | No FHA-style floor; lender-set, typically 580–620 |
| Mortgage insurance | 1.75% upfront + 0.55%/0.50% annual; usually life of loan under 10% down | PMI cancels at 78% LTV | No monthly MI; one-time funding fee |
| 2026 loan limit, 1-unit | $541,287 floor; up to $1,249,125 in high-cost areas | $832,750 | No FHA-style cap for full entitlement |
| Who it's built for | First-time and repeat buyers with limited down payment or credit history | Stronger-credit buyers wanting to avoid FHA's mortgage insurance duration | Eligible veterans, active-duty service members, and surviving spouses |
| Occupancy | Primary residence only; 60-day occupancy | Primary, second home, or investment | Primary residence only |
Program availability and terms vary by lender and loan type. We'll confirm exactly what your file qualifies for.
Who qualifies for an FHA loan?
FHA financing is for a primary residence only, and you must occupy the home within 60 days of closing. The property also has to meet FHA's Minimum Property Requirements: safe, sound, and sanitary.
FHA's 90-day anti-flip rule looks at how long the seller has owned the property. Renovated homes can still work, but ownership timing and documentation need to be checked before underwriting.
As of HUD Mortgagee Letter 2025-09, effective May 25, 2025, FHA financing is no longer available to non-permanent residents. We flag that policy plainly and can review conventional or non-QM alternatives instead.
Debt-to-income guideline: 31%/43%
That means 31% for the housing payment and 43% for total monthly debt. FHA can go higher with compensating factors such as reserves, strong credit, and minimal payment shock.
Program at a Glance
The core FHA terms we use to evaluate a purchase file. Your final terms depend on full underwriting.
- Down Payment
- 3.5% (580+ score) or 10% (500–579)
- Upfront MIP
- 1.75% of loan amount; can be financed
- Annual MIP
- 0.55%/0.50%; cancels at 11 years if starting LTV ≤90%, otherwise life of loan
- DTI Guideline
- 31%/43%; flexible with compensating factors
- 2026 Loan Limit
- $541,287 floor / $1,249,125 ceiling
- Property Type
- Primary residence, 1–4 units
- Occupancy
- Within 60 days of closing
What You'll Provide
- Two most recent pay stubs
- W-2s or tax returns for the past two years (self-employed: two years of returns plus YTD P&L)
- Two months of bank statements
- Photo ID
- Gift letter and donor bank statement if using gifted funds
- Landlord or mortgage payment history if renting
We'll tell you which documents apply to your file before you upload anything.
FHA Loan FAQs
Ready to see whether FHA fits your purchase?
We'll compare FHA with your conventional options and show you the down payment, mortgage insurance, and total monthly payment before you choose.
Toll Free: 1-866-666-2378 (866-666-BEST)
Also see: non-QM loans · refinance options · all loan products
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