Illinois mortgage loan limits for 2025

The 2025 Illinois loan limits for conventional, FHA, and VA mortgages determine how much you can borrow depending on the type of loan and property you're buying.

2025 loan limits for Illinois (FHA and conventional conforming)

One important thing to know about 2025 loan limits in Illinois is that they are the same throughout the state. Whether buying a home in a bustling city like Chicago or a college town like Champaign, the maximum loan amounts for FHA, conventional, and VA loans remain consistent. This consistency means you don't need to adjust your expectations based on location alone.

Conventional conforming loan limits for 2025

Here are the Illinois conventional conforming loan limits for 1-to-4-unit properties in 2025:  

• 1-unit: $806,500
• 2-unit: $1,032,650
• 3-unit: $1,248,150
• 4-unit: $1,551,250

A one-unit property is a house, condo, or townhome. Note that VA loans have the same limits as conventional conforming loans.

FHA loan limits for 2025

Here are the Illinois FHA loan limits for 1-to-4-unit properties in 2025:

• 1-unit: $524,225
• 2-unit: $671,200
• 3-unit: $811,275
• 4-unit: $1,008,300

Use our free mortgage calculator to see current rates, monthly payments, and closing costs upfront.

What is the maximum purchase price if I make the minimum down payment?

Below, we'll calculate the maximum purchase price for a single-family home using the conventional and FHA loan limits and minimum down payment requirements. Then, we'll compare the results and highlight the differences and benefits.

Conventional loan calculation

• Maximum Loan Amount (Conforming limit): $806,500
• Minimum Down Payment: 5%
• Maximum Purchase Price: $849,000
• Down Payment Required: $42,450

FHA loan calculation

• Maximum Loan Amount (FHA limit): $524,225
• Minimum Down Payment: 3.5%
• Maximum Purchase Price: $543,400
• Down Payment Required: $19,020

Comparison: Conventional vs. FHA

Compare your options in real-time. Then, feel confident buying a home because you know what to expect. 

Key differences and benefits: Conventional vs. FHA

Higher Purchase Price with Conventional Loans: A conventional loan allows for a higher maximum purchase price of $849,000, ideal for buyers considering properties above FHA's limits.

Lower Down Payment with FHA Loans: In this example, FHA loans require a lower down payment of $19,020 compared to $42,450 for conventional loans. This lower requirement can help first-time buyers who might not have significant savings.

Credit Score and PMI Factors: Conventional Loans often require stronger credit scores to qualify for favorable terms. However, buyers with a 20% down payment can avoid private mortgage insurance (PMI).

FHA Loans are accessible to buyers with lower credit scores. However, regardless of down payment size, they require mortgage insurance premiums (MIP).

Which loan is best, conventional or FHA?

Choose a conventional loan if your finances and credit score allow you to qualify for higher loan amounts and target a property priced above FHA's limits.

Choose an FHA loan if you need a lower down payment or have a credit profile that doesn't meet conventional loan standards.

Both options have unique advantages. The right choice depends on your financial situation, the property price, and long-term goals.

Get pre-approved for your mortgage. We will guide you through the process and help you choose the best path to homeownership.

3% down payment conventional loan

You can buy a home with as little as a 3% down payment using a conventional mortgage. This option is available to help make homeownership more affordable, especially for first-time buyers. However, there are specific requirements to qualify for this program. Let's break them down.

• Property Must Be a Single-Family Home: This program is only available for single-family homes, including condominiums and townhomes. Multi-unit properties (e.g., duplexes or triplexes) are not eligible.
  
  
• Income Limit: Your qualifying income may not exceed 80% of the area median income (AMI). Your income must be at most $87,840 if you buy in the Chicago metro area. The AMI is subject to adjustments for specific locations. Search AMI by street address. 
  
  
• Exception for First-Time Homebuyers: If your income exceeds the $87,840 limit, you can still make a 3% down payment if at least one borrower is a first-time homebuyer. A first-time homebuyer is someone who has yet to own a home in the past three years.

The 3% down payment option is excellent if you buy a single-family home and meet the requirements of the income or first-time buyer. It combines affordability with the flexibility of a conventional loan, making it one of the most attractive options for buyers with limited savings.

See if you qualify for a 3% down payment - talk to a mortgage expert at NewCastle Home Loans today. Ask questions, get straight answers, and find out how to start on your home loan.

View the Fannie Mae conforming loan limits for all states and counties in the U.S. 

Search FHA mortgage limits by state and county.