How to Buy a House in Illinois
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$292,156
Closing Costs
$14,302
4.9% of price
Property Tax Rate
1.83%
$4,942/yr median
Days on Market
38
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Judicial
Transfer Tax
0.1%
$0.50 per $500
Ad — In-Content
Key Facts About Buying in Illinois
- ✓Second highest property tax rate in the nation
- ✓Attorney customarily involved in closing
- ✓Judicial foreclosure provides homeowner protection
- ✓Chicago market very different from downstate markets
The Home Buying Process in Illinois
Buying a home in Illinois follows a 10-step process. Illinois does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
Ad — In-Content
First-Time Buyer Programs in Illinois
IHDA 1stHomeIllinois
Forgivable loan for first-time buyers
Up to $7,500 in assistanceIncome: Up to $97,000
Cost of Buying a Home in Illinois
| Down Payment (3.5% FHA) | $10,225 |
| Down Payment (20% Conventional) | $58,431 |
| Average Closing Costs | $14,302 |
| Transfer Tax | $292 |
| Annual Property Tax (est.) | $5,346/yr |
Ad — 300x250 Rectangle
Legal & Regulatory Details in Illinois
Homestead Exemption
Available
Up to $15,000
Licensing Authority
Illinois Division of Real Estate
Illinois Real Estate Law Overview
| Conveyance Document | Warranty deed |
| Security Instrument | Mortgage or trust deed |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Conditional |
| Redemption After Sale | Conditional |
| Reinstatement Available | Yes |
| Seller Disclosures | Sellers must provide written notice of known material defects (environmental hazards, boundary disputes, municipal violations, structural problems, flood risks). The requirement does not apply if the seller never occupied or managed the property. |
