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How to buy a home in Illinois

Quick answer

To buy a home in Illinois, most buyers use an FHA, conventional, VA or USDA loan, often combined with Illinois Housing Development Authority (IHDA) down payment assistance. With a typical home around $250,500, a 3.5% FHA down payment is about $8,768 and the estimated monthly payment is roughly $2,275 at a 7.18% rate.

By Purchase Mortgage Loan Editorial Team Checked against official sources per our editorial standardsLast updated

Home prices in Illinois sit near the middle of the national range, so the loan program you choose — and whether you add down payment assistance — can swing your upfront cash by thousands. With a large, diverse market, prices vary widely between metro areas and smaller towns, so compare city-level options below. A household earning around $88,000 a year could comfortably afford a typical Illinois home under the 31% housing guideline.

What does a home cost in Illinois?

ItemIllinois estimate
Typical home value$250,500
3% down (conventional)$7,515
3.5% down (FHA)$8,768
20% down$50,100
Est. monthly payment (FHA, 3.5% down)$2,275
Household income to afford (31%)$88,000

Rate assumption: 7.18% (Freddie Mac PMMS 30-year fixed average, week of November 5, 2026). Change it in the payment calculator.

What first-time home buyer programs does Illinois offer?

Illinois Housing Development Authority (IHDA) is Illinois's housing finance agency. Its programs are offered through approved lenders and usually require homebuyer education plus income and purchase-price limits.

  • IHDAccess Forgivable: Down payment assistance forgiven monthly over 10 years.
  • IHDAccess Deferred: A 0% deferred loan repaid when you sell, refinance or pay off the mortgage.
  • IHDAccess Repayable: A larger assistance amount repaid monthly over 10 years.

Check current terms at Illinois Housing Development Authority (IHDA). Many Illinois cities and counties also run their own down payment assistance.

What are the Illinois loan limits for 2026?

Illinois has 102 counties; 0 are high-cost areas. Here are the official 2026 one-unit limits for its most populous counties (FHFA and HUD):

CountyConformingFHA
Cook County$832,750$541,287
DuPage County$832,750$541,287
Lake County$832,750$541,287
Will County$832,750$541,287
Kane County$832,750$541,287
McHenry County$832,750$541,287
Winnebago County$832,750$541,287
Madison County$832,750$541,287
St. Clair County$832,750$541,287
Champaign County$832,750$541,287
Sangamon County$832,750$541,287
Peoria County$832,750$541,287

See all Illinois county loan limits → VA loans have no limit for borrowers with full entitlement.

Which Illinois down payment assistance programs are verified?

  • IHDA Access Home — 6% of the purchase price up to $15,000 (deferred-payment loan)

How much house can I afford in Illinois?

Use Illinois's own property tax rate and insurance average: $60k, $80k, $100k, $150k salaries, or see FHA requirements in Illinois.

How do property taxes affect buying in Illinois?

Homeowners in Illinois pay a median of $5,189 a year in property taxes — an effective rate of about 2.07% of the median home value, among the highest in the country, so taxes are a major part of the monthly payment (Census ACS). Actual rates vary by county and municipality.

Which loan types are popular in Illinois?

  • Conventional Loan — Not government-backed; as little as 3% down for first-time buyers, PMI removable at 20% equity.
  • FHA Loan — Government-insured; 3.5% down with a 580 credit score and flexible debt-to-income rules.
  • VA Loan — For eligible veterans, service members and surviving spouses: 0% down and no monthly mortgage insurance.
  • USDA Loan — 0% down for moderate-income buyers in eligible rural and suburban areas.
  • Jumbo Loan — For loan amounts above the conforming limit; usually 10–20% down and 700+ credit.
  • First-Time Home Buyer Loans — Low-down-payment loans plus state assistance programs designed for first-time buyers.

Buying a home in Illinois cities

Cook County

Chicago — $315,200Cicero — $236,000Schaumburg — $312,200Evanston — $472,300Arlington Heights — $403,200Palatine — $347,900Skokie — $368,600Des Plaines — $318,200Orland Park — $349,400Oak Lawn — $267,900Berwyn — $286,000Mount Prospect — $377,000Tinley Park — $289,000Oak Park — $456,300Hoffman Estates — $340,400Glenview — $598,800Park Ridge — $539,300Streamwood — $258,300Wheeling — $244,600Hanover Park — $260,900Calumet City — $133,600Northbrook — $644,100Elk Grove Village — $334,400Niles — $350,900Burbank — $258,900Lansing — $168,500Wilmette — $802,200Chicago Heights — $149,900Oak Forest — $247,800Morton Grove — $377,000Melrose Park — $265,000Elmwood Park — $325,000Rolling Meadows — $299,700Blue Island — $169,800Maywood — $212,600South Holland — $201,200Dolton — $140,500Park Forest — $106,200Harvey — $86,100Evergreen Park — $255,700Homewood — $210,500Brookfield — $314,000Matteson — $251,400Alsip — $208,700Bellwood — $219,600Franklin Park — $261,700Palos Hills — $259,200Lemont — $447,800Bridgeview — $234,000Westchester — $297,400Country Club Hills — $180,600La Grange — $582,600Prospect Heights — $347,500Norridge — $361,000Hickory Hills — $278,400Chicago Ridge — $217,800Midlothian — $200,300Forest Park — $293,800Hazel Crest — $181,400Western Springs — $691,300La Grange Park — $427,800Lincolnwood — $475,400Richton Park — $200,400Northlake — $242,400Winnetka — $1,206,300Justice — $235,200Palos Heights — $350,000River Forest — $676,900Schiller Park — $276,200Markham — $119,500Barrington — $580,900Summit — $224,800Worth — $220,200Crestwood — $187,700Riverdale — $104,800River Grove — $244,700Lyons — $243,500

Browse every city page →

Illinois home buying FAQs

On a typical Illinois home of about $250,500, a 3.5% FHA down payment is roughly $8,768 and a 3% conventional down payment about $7,515, plus closing costs of 2%–5% of the loan.

Yes. Illinois Housing Development Authority (IHDA) offers programs including IHDAccess Forgivable, IHDAccess Deferred, IHDAccess Repayable. Income, price and credit limits apply.

The 2026 baseline conforming limit for a one-unit home is $832,750 in most Illinois counties; designated high-cost counties can be higher.

FHA limits are set by county. For 2026 they start at $541,287 for one-unit homes in lower-cost areas and rise in higher-cost counties.

Sources

Data last updated October 23, 2026.

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Figures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.