Chicago FHA Loan Limits for Multi-Family Residential Buildings

Some of you may already know, but the FHA (Federal Housing Administration) allows home buyers to purchase multi-family property using a mortgage for as little as 3.5% of the purchase price. Recently, the FHA reduced the loan limits in Illinois which will affect the purchasing power of future buyers who plan to use an FHA insured loan for their first or next purchase.

Here are the new loan limits for Cook County Chicago, Illinois:

Two Units: $468,150 Maximum Loan Amount

Three Units: $565,900 Maximum Loan Amount

Four Units: $703,250 Maximum Loan Amount

FHA loans can be great for first-time home buyers and investors but do have some restrictions. Here are some basic facts about FHA loans:

- Purchaser must occupy one of the units on the property

- Must pay up front and monthly mortgage insurance premiums, rates and terms vary

- Lower than perfect credits scores can still qualify

- FHA appraisals stick with the subject property for 6 months

- FHA loans can be tough to obtain with distressed properties

- Three Flats and Four Flats have a self-sufficiency test as an added layer of qualification making these more difficult to purchase with an FHA insured loan

If you plan to occupy one of the units in your next two flat three flat or four flat, FHA loans could be a great option for you!

Learn more at my website, www.chicagoREinvestment.com.