Conventional Loans in Illinois

These are the conventional loan requirements we work with across our wholesale lenders. Your automated approval and your lender’s rules decide the final answer, which is why we compare several.

For loans created on or after November 16, 2025, Fannie Mae removed the 620 minimum credit score for files approved through its Desktop Underwriter system. The system now weighs your whole file: income, assets, reserves, and payment history. We work with lenders that follow that rule with no minimum score of their own, as long as you get an approval from the automated system.

There’s one exception. The 3% and 5% down programs still require a 620 score. And a lower score always costs more, through a higher rate or more expensive mortgage insurance. For the full breakdown, read why conventional loans no longer require a minimum credit score.

Source: Orrick InfoBytes, Fannie Mae Selling Guide update (November 2025)

The 2026 conforming loan limit is $832,750 for a single-family home in Cook County, and the same baseline applies across the Chicago area. Multi-unit buildings get higher limits:

Since late 2023, Fannie Mae allows 5% down on a 2 to 4 unit home you live in, down from 15% to 25%. That puts a Chicago two-flat on a similar down payment to FHA’s 3.5%, without FHA’s mortgage insurance for the life of the loan. Rent from the other units can help you qualify. Alex owns rentals himself and will tell you honestly whether the building pencils out.

Source: National Mortgage Professional

Illinois has the second-highest effective property tax rate in the country, at 2.05% of home value. On a $350,000 home that’s about $7,175 a year, or $598 a month, and every dollar of it counts toward your debt-to-income ratio. National lenders that estimate taxes with a flat average can pre-approve you for a payment you won’t actually qualify for once the real tax bill shows up. We use the actual tax bill on the property you’re buying, so the number on your pre-approval holds up at closing.

Source: Civic Federation

The national 30-year fixed average was 7.18% in Freddie Mac’s survey for the week of November 5, 2026. Your rate can land above or below that, depending on the details of your file.

National averages are a starting point, not your quote. Conventional pricing adds or subtracts cost based on your credit score, down payment, property type, and loan purpose, and every lender prices those adjustments differently. That spread is what we shop.

The rate sets your monthly payment. The APR adds in points and lender fees, so it shows the true cost. When you compare conventional offers, compare the APR, the points in Section A of your Loan Estimate, and whether the rate is locked.

Fannie Mae’s HomeStyle Renovation and Freddie Mac’s CHOICERenovation let you buy a home and finance the remodel in one conventional loan, based on the home’s value after the work is done. It’s a strong fit for the Chicago area’s older bungalows, greystones, and split-levels that need a kitchen, a roof, or a basement before they feel like home. You can also use it to renovate a home you already own. Alex has renovated more than 100 properties, so he’ll pressure-test your contractor’s budget before it goes to the lender.

Buy a lake house in Wisconsin or a winter place in Arizona with 10% down. A second home must be one you use yourself, not a full-time rental.

Conventional loans finance 1 to 4 unit rentals with as little as 15% down on a single-family home, using your income and the property’s rent to qualify. If you’d rather not show personal income, or you’re closing in an LLC, a DSCR loan for rental properties qualifies you on the rent alone.

A homeowner was referred to us by one of our realtor partners. Her divorce required her to refinance and pay off her ex-husband, or she would lose the house.