Overview
Illinois offers first-time buyers a statewide median home price near $260,000 and a flat income tax of 4.95%, but it pairs that affordability with some of the highest property taxes in the country — a trade-off that shapes nearly every homeownership budget in the state. Prices and tax bills both run higher in the Chicago metro than they do downstate. The Illinois Housing Development Authority (IHDA) is the main source of state assistance, and in March 2026 it expanded its lineup with a new, larger program.
IHDA's newest and largest option, IHDAccess Home, launched in March 2026 and provides 6% of the purchase price — up to $15,000 — as a zero-interest second mortgage with no monthly payment, deferred for up to 30 years and repaid only when you sell or refinance. It requires a minimum 640 credit score, first-time-buyer status (no ownership in the past three years), completion of an IHDA-approved counseling course, and income within county limits (around $137,885 in Cook County, depending on household size). The assistance pairs with a 30-year fixed IHDA mortgage.
State Programs
IHDAccess Home
Deferred down payment and closing cost assistanceIHDAccess Forgivable Mortgage
Forgivable down payment assistanceIHDAccess Deferred Mortgage
Deferred down payment assistanceFederal Programs Available in Illinois
These nationwide programs can be combined with Illinois state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Illinois
IHDA still offers its established programs alongside the new one, and the right choice depends on whether you want help that's forgiven, deferred, or repaid. IHDAccess Forgivable provides 4% of the price (up to $6,000) as a silent second that's forgiven monthly over ten years. IHDAccess Deferred offers 5% (up to $7,500) with repayment pushed to the end of your mortgage, and a separate IHDAccess Repayable option lends up to 10% (capped at $10,000) interest-free over ten years for buyers who want the most cash up front. Only one IHDA assistance program applies per purchase, so compare the forgiveness terms — IHDAccess Home's larger $15,000 deferred balance suits most buyers, but a forgivable option can be better if you plan to stay long term.
Illinois's property taxes are the defining cost for homeowners. Effective rates average roughly 2.07% of home value — among the two or three highest in the nation — which on a $260,000 home means about $5,400 a year, or roughly $450 a month on top of principal and interest. The flat 4.95% income tax is more middle-of-the-road. When you compare two homes, compare their actual tax bills, not just the prices: a lower-priced home in a high-tax district can cost more each month than a pricier one elsewhere. Cook County and the collar counties offer homeowner exemptions that reduce the taxable value of a primary residence, so file for them after closing.
Chicago-area buyers have extra options. The City of Chicago and Cook County run their own down payment assistance funds, and nonprofit lenders across the metro participate in IHDA programs. Veterans and active-duty buyers near Naval Station Great Lakes or Scott Air Force Base should weigh a zero-down VA loan against state assistance, and rural downstate buyers may qualify for zero-down USDA loans. A HUD-approved housing counselor can confirm which city, county, and state programs stack for your price range — and since every IHDA program requires counseling anyway, starting that course early keeps your options open.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.