State Buyer Guide

First-Time Home Buyer Guide
for Illinois

Down payment assistance, Illinois housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

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$285,000
Avg Home Price
2.23%
Property Tax Rate
~$8,550
Est. Closing Costs
0.1% state; Chicago ~1.2% total
Transfer Tax

Illinois Housing Finance Agency Programs

The Illinois Housing Development Authority (IHDA) is your primary source for below-market mortgage rates and down payment assistance in Illinois. Programs are available through approved lenders — not directly through the HFA.

IHDA Access Forgivable
4% of purchase price (max $6,000) — forgiven after 10 years

Forgivable down payment assistance with a 30-year fixed-rate mortgage.

Income limit: $99,000–$119,000 (varies by county)
Learn more at Illinois Housing Development Authority (IHDA)
IHDA Access Deferred
5% of purchase price (max $7,500) at 0% — deferred until sale or payoff

Larger DPA as a 0% interest deferred second mortgage.

Income limit: $99,000–$119,000 (varies by county)
Learn more at Illinois Housing Development Authority (IHDA)
High Value — $240/funded loan

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Closing Costs in Illinois

Typical Closing Cost Range
3% of purchase price

On a $285,000 home: approximately $8,550

Transfer Tax
0.1% state; Chicago ~1.2% total

Illinois charges $0.50 per $500 (0.1%) state transfer tax. Chicago adds $7.50/$1,000, and Cook County adds its own tax — combined total in Chicago approaches 1.2%.

Attorney at Closing?
No — title company state

Illinois does not legally require an attorney at closing, but both buyer and seller typically hire one for contract review. Budget $500–$1,000 and strongly consider it for FSBO transactions.

Key Tips for Buying in Illinois

  • Illinois has one of the highest property tax rates in the nation — $6,000–$20,000/year is common in the Chicago suburbs.
  • Request multiple years of tax bills — property taxes can swing dramatically year to year in some counties.
  • Attorney review is a standard 5-business-day period after contract signing in Illinois — don't waive it.
  • Ask for a tax proration credit at closing to cover the portion of the year before you take ownership.
Home Inspection

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Legal Help for Illinois Buyers

While Illinois doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

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Frequently Asked Questions

What first-time buyer programs are available in Illinois?

Illinois first-time buyers can access programs through the Illinois Housing Development Authority (IHDA) (https://www.ihda.org/), including the IHDA Access Forgivable (4% of purchase price (max $6,000) — forgiven after 10 years) and the IHDA Access Deferred (5% of purchase price (max $7,500) at 0% — deferred until sale or payoff). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Illinois?

Closing costs in Illinois typically run 3% of the purchase price. Transfer tax: 0.1% state; Chicago ~1.2% total. Illinois charges $0.50 per $500 (0.1%) state transfer tax. Chicago adds $7.50/$1,000, and Cook County adds its own tax — combined total in Chicago approaches 1.2%.

Do I need an attorney to buy a home in Illinois?

Illinois does not legally require an attorney at closing, but both buyer and seller typically hire one for contract review. Budget $500–$1,000 and strongly consider it for FSBO transactions.

What is the average home price in Illinois?

The median home price in Illinois is approximately $285,000. Property taxes average 2.23% of assessed value annually.

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