Illinois · State guide
How to buy a house in Illinois
Home prices are reasonable by national standards — but Illinois has the second-highest property taxes in the country, so the carrying cost matters more than the sticker price. The upside: a newly expanded state program offers up to $15,000 in help. Here is the playbook.
Last updated June 2026
Why Illinois is different
Buying a house in Illinois, the short version
The federal process is the same everywhere — read the complete guide to buying a house for the eight universal steps — but Illinois has its own programs, taxes, and closing customs worth knowing before you start.
The picture: Illinois home prices are affordable by national standards (a statewide median around $315,000; the Chicago suburbs run higher, downstate lower), but the state carries the second-highest property taxes in the country — roughly 2.1%, with a typical bill near $5,300. In much of the Chicago area, the tax bill matters more than the price. On the plus side, the state housing agency (IHDA) just expanded its help with a new program offering up to $15,000 toward your down payment.
Two more things to plan for. Illinois real estate deals customarily run through attorneys (there’s a built-in attorney-review period) plus a title company — and transfer taxes are layered, with Chicago adding a steep city tax on top of the state and county ones. Use the 50-state hub to compare other states.
The market
What homes cost in Illinois
More affordable than the coasts, with tight inventory keeping it a seller’s market.
The statewide median sale price was about $314,200 in early 2026, up roughly 4.6% year over year (Redfin), with homes selling in about 28 days. Inventory is low, so well-priced homes still draw competition. Prices vary widely across the state:
Median prices by area
Downstate (Rockford, Peoria, Springfield, Decatur) is the most affordable, often well under $250,000 · Chicago / Cook County ~$305,000–$335,000 · Chicago collar counties (DuPage, Lake, Will, Kane, McHenry) ~$455,000. The trade-off across most of the state is the same: lower home prices than the coasts, but much higher annual property taxes.
Down payment & rate help
IHDA homebuyer programs
You don’t apply directly — you work through an IHDA-approved lender (all offer the same interest rate). A minimum 640 credit score and a homebuyer course are required.
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IHDAccess Home (the new program)
Launched in 2026, this pairs a 30-year fixed mortgage with up to $15,000 (6% of the price) for your down payment and/or closing costs.
The help is a 0%-interest deferred second mortgage — no monthly payment, repaid only if you sell or refinance, or after 30 years. For first-time buyers (or veterans), on existing or new-construction homes.
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IHDAccess Forgivable, Deferred & Repayable
IHDA’s established trio: Forgivable (4%, up to $6,000, forgiven over 10 years), Deferred (5%, up to $7,500, 0% repaid at sale/refinance), and Repayable (10%, up to $10,000, 0% repaid monthly over 10 years).
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MCC tax credit & SmartBuy
The Mortgage Credit Certificate gives you a federal tax credit worth 25% of your annual mortgage interest (up to $2,000 a year) for the life of the loan. SmartBuy, when funded, helps buyers carrying heavy student-loan debt.
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City & federal help
Local programs add more: the Chicago Housing Authority offers grants up to $20,000, the City of Alton up to $5,000, and the Federal Home Loan Bank of Chicago up to $6,000. Plus USDA (0% down, rural) and VA (0% down).
The IHDA rules in brief
You’ll generally need a 640+ credit score, a minimum contribution of $1,000 or 1% of the price (whichever is greater), and completion of an 8-hour HUD-approved homebuyer course. There are income and purchase-price limits by county (for example, Cook County household income runs roughly $82,740 for one person up to $103,420 for four). Most programs require first-time-buyer status (no ownership in the last three years), though veterans and buyers in targeted areas may be exempt.
★ Free expert help
Buying in Illinois? Get matched with a local expert.
From IHDA’s new $15,000 program to figuring out the real property-tax bill on a specific home, an Illinois pro can walk you through it — and answer the questions this page can’t. Free, with no obligation.
Property taxes
Property taxes in Illinois: the thing to plan for
This is the headline. Illinois has the second-highest effective property tax rate in the country — about 2.07%, nearly double the national average — with a median bill around $5,300 a year. The drivers are a flat income tax that can’t be graduated and nearly 7,000 units of local government (more than any other state), each able to levy taxes. Illinois uses two assessment systems: Cook County assesses homes at 10% of market value, while the other 101 counties use 33.33%, and a state multiplier equalizes them (your “EAV”). The collar counties around Chicago carry the highest rates — Lake around 2.4%–2.7%, with Kane, McHenry, and Will in the 2.1%–2.5% range, and DuPage and Cook closer to 1.9%–2.0%; downstate is generally lower.
Cut the bill — and budget for it before you buy
File for the General Homestead Exemption on your primary residence — it reduces your taxable EAV by $10,000 in Cook County, $8,000 in the collar counties, and $6,000 downstate. Homeowners 65+ can add the Senior Homestead Exemption, and income-qualified seniors the Senior Freeze. Most important: in the Chicago suburbs, your property-tax payment can rival your mortgage principal, so get the actual current tax bill on any home (not just the rate) before you commit — and appeal the assessment if it looks too high.
Closing & costs
Closing on a home in Illinois
Illinois deals customarily involve attorneys for both buyer and seller. The standard contract includes a 5-business-day attorney-review period, when your lawyer can review and negotiate terms, and a title company handles the actual escrow and closing. So budget for an attorney fee (roughly $500–$1,500) on top of title costs. A purchase usually closes in about 30–45 days.
Transfer taxes in Illinois are layered. The state charges $1.00 per $1,000 of price (0.10%) and the county adds $0.50 per $1,000 (0.05%) — both customarily paid by the seller (about $450 on a $300,000 home). But inside the City of Chicago, a city transfer tax of roughly 1%+ is added and split between buyer and seller, making Chicago one of the priciest transfer-tax cities in the country — confirm the exact splits in your contract with your attorney. (A PTAX-203 declaration is filed with every deed, and there’s no separate tax on your mortgage.) On financing, the 2026 conforming limit is $832,750 in every county, and the FHA floor is $541,287 statewide — confirm your county with HUD.
Illinois requires disclosures — including radon
Sellers must give you a Residential Real Property Disclosure Report (a checklist of known material defects — foundation, roof, basement leaks, electrical, plumbing, and more) before you sign. Illinois also requires a radon disclosure: the seller provides the state’s radon pamphlet and a disclosure form, because much of Illinois has elevated radon levels. The federal lead-paint rule applies to homes built before 1978.
None of these replace your own due diligence — always get a professional home inspection, and seriously consider a radon test given how common radon is here.
Insurance & risks
Insuring an Illinois home
Home insurance in Illinois runs roughly $2,200–$3,500 a year and has been rising fast — premiums climbed about 50% between 2021 and 2024, major insurers have filed double-digit hikes, and Illinois regulators can’t reject rate increases. The dominant risk is severe weather: Illinois averages around 50 tornadoes a year and, in 2024, had more hail-damage claims than any state except Texas. As a result, many policies now carry a separate wind/hail deductible.
Storms, water, and a separate deductible
Wind/hail deductible: check it — it’s now often a percentage (1%+) of your dwelling value rather than a flat dollar amount, and an older roof (20+ years) can mean surcharges or even non-renewal. Flood isn’t covered by a standard policy; you’ll need separate NFIP flood insurance near rivers, and in the Chicago metro a sewer-backup endorsement is worth adding given frequent basement-flooding claims. And southern Illinois sits near the New Madrid seismic zone, so earthquake coverage is a separate endorsement there.
Wherever you buy
The steps that work the same in Illinois
Illinois sets the local rules, but these parts of buying are the same everywhere.
Quick answers
Buying a house in Illinois: common questions
How much money do you need to buy a house in Illinois?
With a conventional loan you need 3% down, FHA 3.5%, and VA or USDA can be 0%. On a typical ~$315,000 home that’s roughly $9,500–$11,000 down plus closing costs — and IHDA’s Access Home can cover up to $15,000 of that. Just remember property taxes will be a major monthly cost. See how much you really need →
Does Illinois have down payment assistance?
Yes. IHDA’s new Access Home offers up to $15,000 as a 0% deferred second mortgage, alongside the Forgivable, Deferred, and Repayable options. Chicago and other cities add their own grants. See assistance programs →
Why are Illinois property taxes so high?
At about 2.1%, Illinois has the second-highest effective property tax rate in the country, driven by a flat income tax and nearly 7,000 units of local government. The annual tax — not the home price — is often the real affordability challenge. Be sure to file the homestead exemption.
Does Illinois have a transfer tax?
Yes — the state charges $1 per $1,000 and the county adds $0.50 per $1,000, both usually paid by the seller (about $450 on a $300,000 home). Chicago adds a much larger city transfer tax that’s split between buyer and seller.
What credit score do you need in Illinois?
IHDA programs require a minimum 640. For loans generally, FHA can go to 580 and conventional around 620. A higher score mainly earns a lower rate. Check the score by loan type →
Do I need a real estate attorney in Illinois?
It’s not legally required, but it’s customary — especially in the Chicago area. The standard contract includes a 5-business-day attorney-review period when your lawyer reviews and can negotiate the terms. A title company handles the closing itself.
Do home sellers have to disclose problems in Illinois?
Yes. Illinois requires a Residential Real Property Disclosure Report of known material defects, plus a radon disclosure. Always get your own inspection and consider a radon test, since radon is common here. How inspections fit the process →
Do I need special insurance for tornadoes or floods?
Tornado and hail damage are covered by standard policies, but often with a separate wind/hail deductible. Flooding needs separate NFIP coverage, and Chicago-area buyers should add a sewer-backup endorsement.
What’s the conforming loan limit in Illinois?
$832,750 in every county for 2026 — Illinois has no high-cost counties. The FHA floor is $541,287 statewide. Loans above the limit are jumbo mortgages.
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Buying in a different state?
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