How much do I need for a down payment to buy a home in Illinois?
It depends on the loan. FHA loans require 3.5% down with a credit score of 580 or higher, some conventional loans allow 3% down for first-time buyers, and VA and USDA loans can require 0% down for eligible buyers. Plan separately for closing costs, which commonly run about 2% to 5% of the purchase price.
Is there down payment assistance for first-time buyers in Chicago and Illinois?
Yes. The Illinois Housing Development Authority (IHDA), Cook County, and the City of Chicago all offer purchase assistance programs, and some can be combined with FHA or conventional loans. Eligibility rules, income limits, and funding change often, so I connect buyers with lenders who work with these programs every day.
Do I need a real estate attorney to buy a home in the Chicago area?
In practice, yes. In the Chicago area both buyers and sellers almost always hire a real estate attorney, and the standard contract includes an attorney review period, typically five business days, during which either side's attorney can propose changes.
Do I have to sign an agreement with an agent before touring homes?
Yes. Under current industry rules, you sign a written buyer agreement with your agent before touring homes together. It spells out what the agent will do for you and how they are paid. Agent compensation is negotiable, and sellers sometimes agree to cover part or all of it.
How long does it take to buy a home?
Most financed purchases close about 30 to 45 days after the offer is accepted. Cash deals can close faster. Getting pre-approved before you shop shortens the process and makes your offer stronger.
Can I buy a 2-flat or multi-unit building as my first home?
Yes, and it is one of the best ways to start building wealth. FHA loans allow 1 to 4 unit properties with 3.5% down if you live in one of the units, and conventional loans allow 2 to 4 units with as little as 5% down. Rent from the other units can help you qualify and offset your mortgage. This strategy is called house hacking, and it is a specialty of mine.
Why do I get a property tax credit at closing in Cook County?
Cook County property taxes are paid a year in arrears, meaning this year's bills cover last year. Because of that, the seller gives the buyer a credit at closing for taxes owed for the time they owned the home. Your attorney and lender calculate the exact amount.
What is a point-of-sale inspection or transfer stamp?
Many Chicago-area towns, especially in the suburbs, require a municipal inspection, a water bill payoff, or a transfer stamp before a home can close. Requirements and fees vary by town, and some issues found in the inspection must be fixed before closing or handled with an escrow. I flag these early so they don't delay your closing.
