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Buying a home

Data from November 2026

Buying a home in Illinois

A typical home in Illinois is worth $263,300 (Average 2020–2024). The FHA limit for one unit is $541,287 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$263,300
median value, Average 2020–2024
21% less than the U.S.
FHA limit
$541,287
one unit, by county
All of Illinois uses the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$9,216
3.5% of a $263,300 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $263,300 home, the typical value in Illinois. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $263,300 home in Illinois

  1. FHA Program rule

    Minimum down3.5%

    In dollars$9,216

    Per month$1,721

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$7,899

    Per month$1,730

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,784

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,784

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$39,495

    Per month$1,516

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

In 2026 data, every county in Illinois uses the national FHA floor ($541,287) for one unit. The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Illinois programs for buyers

6 verified programs that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all 6 programs

  • IHDAccess Home

    Limited funds remain, per the source

    Verified November 5, 2026

    IHDA second loan with deferred payments for first-time buyers in Illinois

    • Deferred
    See details

  • IHDAccess Forgivable

    Limited funds remain, per the source

    Verified November 5, 2026

    IHDA second loan forgiven little by little over ten years, for the down payment in Illinois

    • Forgivable
    See details

  • IHDAccess Deferred

    Limited funds remain, per the source

    Verified November 5, 2026

    IHDA second loan with no payments until you sell or refinance, for the down payment in Illinois

    • Deferred
    See details

What the state publishes

Illinois rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Illinois

Exemptions and caps

  • General Homestead Exemption

    Lowers the equalized assessed value of your principal residence by up to $10,000 in Cook County, $8,000 in the counties next to Cook and $6,000 in the rest of Illinois.

    35 ILCS 200/15-175 · Illinois Department of Revenue · Verified October 15, 2026

  • Senior Citizens Homestead Exemption

    For owners 65 or older who live in the home: up to $8,000 off the equalized assessed value in Cook County and the counties next to it, and $5,000 elsewhere. In Cook County you apply every year to the County Assessor's Office.

    35 ILCS 200/15-170 · Illinois Department of Revenue · Verified October 15, 2026

  • Low-income Senior Citizens Assessment Freeze

    Freezes the assessed value of the home of an owner 65 or older whose household earns $75,000 or less (tax year 2026, payable in 2027; $77,000 in 2027). You apply every year with Form PTAX-340 to the county assessment office.

    35 ILCS 200/15-172 · Illinois Department of Revenue · Verified October 15, 2026

When the sale is recorded

  • State real estate transfer tax

    The state charges 50 cents for each $500 of value when the sale is recorded. Counties may add 25 cents per $500, and home-rule cities (such as Chicago) may have their own tax.

    35 ILCS 200/31-10 · Illinois Department of Revenue · Verified October 15, 2026

  • County and municipal transfer taxes

    On top of the state tax, the county may charge 25 cents per $500 of value and home-rule municipalities may impose one more. Buyer and seller complete the PTAX-203 declaration in the property's county.

    35 ILCS 200/31-1 to 31-70 · Illinois Department of Revenue · Verified October 16, 2026

Your next steps

Where to go next in Illinois

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Illinois calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    81 HUD-approved agencies help you prepare to buy; 29 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Illinois?

For a $263,300 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $9,216 and the conventional minimum (3%) is $7,899. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Illinois?

No. In 2026 data, every county in Illinois uses the national FHA floor ($541,287) for one unit.

What is the conforming loan limit in Illinois?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Illinois: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Illinois?

With $263,300, the FHA minimum down payment ($9,216) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,721 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Illinois?

We have verified 6 state programs in Illinois that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.