Illinois Mortgage Guide 2026
Everything you need to know about getting a mortgage in Illinois — loan limits by county, available programs, IHDA assistance, property taxes, closing costs, and how the Illinois housing market affects your financing options.
Illinois Loan Limits by County (2026)
Conforming loan limits determine the maximum loan amount eligible for conventional financing through Fannie Mae and Freddie Mac. FHA loan limits are set by HUD. Unlike some states, Illinois is uniform statewide — every county carries the same limits, with no high-cost designations.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Cook County (Chicago) | $832,750 | $541,287 | Statewide standard |
| DuPage County (Naperville) | $832,750 | $541,287 | Statewide standard |
| Lake County | $832,750 | $541,287 | Statewide standard |
| Will County (Joliet) | $832,750 | $541,287 | Statewide standard |
| Kane County (Aurora) | $832,750 | $541,287 | Statewide standard |
| Winnebago County (Rockford) | $832,750 | $541,287 | Statewide standard |
| Sangamon County (Springfield) | $832,750 | $541,287 | Statewide standard |
| St. Clair / Madison (Metro East) | $832,750 | $541,287 | Statewide standard |
| All other Illinois counties | $832,750 | $541,287 | Statewide standard |
Illinois has no FHA high-cost counties. The 2026 FHA limit is $541,287 for a single-family home in every Illinois county (up to $693,050 for 2-unit, $837,700 for 3-unit, and $1,041,125 for 4-unit properties). Confirm your county at HUD’s official FHA limit lookup tool, and confirm conforming limits at FHFA’s conforming loan limit page.
Loan Programs Available in Illinois
All major federal mortgage programs are available statewide in Illinois. Here’s how each compares for Illinois buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 (lender overlay) | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural/suburban buyers who meet income limits |
| Conventional | 3–20% | 620 | Strong credit, wants to avoid lifetime MIP |
| Jumbo | 10–20% | 700+ | Purchases above $832,750 |
| IHDA Access | As low as 1%* | 640 | First-time and repeat buyers using IHDA DPA |
*IHDA requires a borrower contribution of $1,000 or 1% of the purchase price (whichever is greater), with down payment assistance layered onto an FHA, VA, USDA, or conventional base loan.
Illinois Housing Development Authority (IHDA) Programs
IHDA is Illinois’s state housing finance agency. It pairs a 30-year fixed-rate mortgage at a competitive rate with down payment and closing-cost assistance, available only through IHDA-approved participating lenders. All IHDA loans require homebuyer education and a minimum 640 credit score.
IHDA Loan Types
| Program | Who Qualifies | Key Feature |
|---|---|---|
| IHDAccess Home | First-time buyers & veterans | 6% up to $15,000, 0% interest, deferred (repaid on sale/refi or after 30 years) |
| IHDAccess Forgivable | First-time & repeat buyers | 4% up to $6,000, forgiven over 10 years — does not have to be repaid |
| IHDAccess Deferred | First-time & repeat buyers | 5% up to $7,500, 0% interest, deferred until sale/refi/payoff |
| IHDAccess Repayable | First-time & repeat buyers | 10% up to $10,000, 0% interest, repaid monthly over 10 years |
IHDA Down Payment Assistance & Tax Credit
IHDA’s assistance is provided as a second mortgage that can cover the down payment, closing costs, or both, keeping your out-of-pocket contribution as low as $1,000 or 1% of the purchase price. Illinois also offers a Mortgage Credit Certificate (MCC), a federal tax credit worth 25% of annual mortgage interest that can be stacked with an IHDAccess program.
Income and purchase-price limits apply and vary by county. For example, IHDAccess Home income limits reach roughly $137,885 in Cook County and $128,110 in Madison County; other counties differ. Verify current limits and find a participating lender at ihdamortgage.org.
Property Taxes in Illinois
Illinois’s effective property tax rate is approximately 1.88% of home value — the second highest in the nation and the highest in the Midwest. Because property taxes are a large part of your monthly PITI payment, they have a significant effect on your qualifying DTI in Illinois.
How Illinois assesses: Most counties assess at 33.33% of market value; Cook County assesses residential property at 10%. An equalization multiplier and homestead exemptions (General Homestead Exemption of $10,000 in Cook, $6,000 in collar counties) are applied before the local rate. Illinois property taxes are also paid in arrears, which affects prorations at closing.
| Home Value | Est. Annual Tax (1.88%) | Monthly Escrow |
|---|---|---|
| $250,000 | ~$4,700 | ~$392/mo |
| $300,000 | ~$5,640 | ~$470/mo |
| $350,000 | ~$6,580 | ~$548/mo |
| $450,000 | ~$8,460 | ~$705/mo |
Rates vary widely by county. Effective rates range from under 1% in some southern Illinois counties to roughly 2% in Cook and well above 2% in Lake and other collar counties. The 1.88% figure is a statewide average — verify parcel-specific rates with your county assessor before finalizing your budget.
Closing Costs in Illinois
Illinois buyer closing costs typically run 2%–5% of the purchase price — higher than many states because Illinois charges real estate transfer taxes, attorney involvement is customary, and high property taxes mean larger prepaid tax escrows. Examples below assume a $335,000 purchase with 5% down (a ~$318,250 loan).
| Fee | Rate / Amount | On a $335,000 Purchase |
|---|---|---|
| Loan origination fee | 0.5–1.2% of loan amount | ~$1,600–$3,800 |
| Appraisal | $600–$900 (higher for unique properties) | $600–$900 |
| Attorney fee | Customary in Illinois closings | $500–$1,500 |
| Title insurance (lender’s) | Based on loan amount | ~$500–$1,000 |
| Title insurance (owner’s) | Seller customarily pays in Illinois | Usually seller-paid |
| Escrow / settlement fee | Paid to title/settlement company | $500–$1,200 |
| Recording fees | Varies by county | ~$125 |
| Transfer tax | State $0.50/$500 + county $0.25/$500 | ~$500 (typically seller-paid outside Chicago) |
Illinois is an attorney-closing state. Unlike states where title companies handle everything, Illinois buyers and sellers customarily use a real estate attorney ($500–$1,500). Note also that Chicago and some suburbs (such as Naperville) add a municipal transfer tax — in Chicago the combined city tax adds thousands and is split between buyer and seller — so closing costs run 1%–2% higher inside Chicago than in the suburbs.
Illinois Housing Market Overview (2026)
Illinois is trending toward a more balanced, buyer-leaning market in 2026. The statewide median sale price is roughly $333,800, up about 5.6% year over year, with inventory still constrained and homes taking around 50 days to sell. Prices are stronger in the Chicago metro and softer downstate. Don’t waive inspections to compete, and in tighter Chicago-area segments sellers still expect a full pre-approval letter, not just a pre-qualification.
| Area | Median Price (Est.) | Market Trend | Key Notes |
|---|---|---|---|
| Chicago metro (Cook & collar) | $340,000–$400,000 | Competitive | Largest market; low inventory; single-family ~$348K, condos higher |
| Rockford (Winnebago) | $160,000–$185,000 | Competitive | Most affordable major metro; homes sell fast |
| Peoria | $150,000–$185,000 | Balanced | Affordable, rental-heavy market |
| Springfield (Sangamon) | $175,000–$200,000 | Stable | State capital; steady, government-anchored demand |
| Metro East (St. Clair/Madison) | $180,000–$240,000 | Stable | St. Louis-adjacent; near Scott Air Force Base |
