Chicago First-Time Homebuyer Resource Center

2026–2027 Guide to Buying Your First Home in Chicago & Chicagoland

Mortgage education from David Braun | Mortgage Loan Officer | NMLS #303007

Buying your first home in Chicago or the surrounding suburbs can feel complicated. Mortgage programs, down payments, credit, closing costs, property taxes, home inspections and loan guidelines all play a role.

This Chicago First-Time Homebuyer Resource Center was created to help buyers understand the process before they begin making major financial decisions.

Bookmark this page. It is designed to become an ongoing educational resource for Chicagoland homebuyers.

1. Start With Mortgage Preapproval

Before seriously shopping for a property, buyers should understand approximately how much they may qualify to finance.

A mortgage professional may review items including:

Income and employment
Credit history
Monthly debts
Assets and available funds
Down payment
Property type
Occupancy
Potential mortgage program

A mortgage preapproval can also help establish a realistic home-shopping budget before you begin making offers.

2. How Much Home Can You Afford?

The maximum mortgage someone may qualify for and the monthly payment someone is comfortable making are not necessarily the same number.

Homebuyers should consider the complete housing expense, which can include:

Principal
Interest
Property taxes
Homeowners insurance
Mortgage insurance when applicable
Homeowners association assessments when applicable
Maintenance and future repairs

3. Understand Your Mortgage Options

There isn't one mortgage program that is appropriate for every borrower. Depending on eligibility and circumstances, buyers may explore programs such as:

Conventional mortgages
FHA financing
VA home loans for eligible borrowers
USDA financing for eligible properties and borrowers
Illinois housing programs
Down-payment assistance programs

4. FHA Loans

FHA-insured financing is one mortgage option available to eligible homebuyers.

HUD states that FHA's standard home mortgage program can provide approximately 96.5% financing for eligible borrowers and properties. Borrowers must satisfy applicable FHA and lender requirements.

FHA financing may be worth exploring for buyers who want to understand lower-down-payment mortgage options.

Official HUD FHA Loan Information

5. Illinois Down-Payment Assistance

Illinois buyers should also investigate programs offered through the Illinois Housing Development Authority (IHDA).

As of this guide's October 2026 update, IHDA advertises multiple homeownership programs. Its Access Home program provides eligible first-time buyers assistance equal to 6% of the purchase price, up to $15,000, for down-payment and closing-cost assistance.

Income limits, purchase-price limits, credit requirements, homeownership education and additional program requirements apply. Programs can change, so buyers should verify current requirements before relying on a particular program.

Illinois Housing Development Authority

6. Cook County Down-Payment Assistance

Homebuyers purchasing in Cook County should also investigate the Cook County Down Payment Assistance Program.

Cook County states that its current program can provide qualifying buyers with assistance equal to 5% of the final first-mortgage loan amount, up to $25,000.

The assistance can be used toward eligible down-payment, closing-cost or mortgage-buydown expenses.

Income, property and program requirements apply. First-time homebuyers must also complete required homebuyer education.

Official Cook County Down Payment Assistance Program

7. Your Credit Matters

Credit can influence mortgage eligibility, pricing and available loan programs.

Before purchasing a home, consider reviewing your credit reports and discussing potential credit issues with your mortgage professional before making significant changes.

Avoid assuming that opening or closing an account, paying off a particular debt or moving money will automatically improve your mortgage qualification.

8. Prepare Your Documents

Depending on your situation, mortgage documentation can include:

Recent pay statements
W-2 forms
Federal tax returns when required
Bank statements
Investment or retirement statements
Identification
Employment documentation
Documentation of other income
Gift-fund documentation when applicable

Self-employed borrowers may have additional documentation requirements.

9. Budget for More Than the Down Payment

One of the most common first-time-buyer mistakes is focusing exclusively on the down payment.

Depending on the transaction, buyers may also encounter:

Closing costs
Prepaid property taxes
Homeowners insurance
Escrow funding
Inspection expenses
Appraisal expenses
Attorney expenses
Moving expenses
Immediate repairs or improvements

10. Shop for the Home

Once financing preparation is underway, buyers can work with a qualified real-estate professional to identify properties that fit their goals.

Price is only one consideration. Buyers should also evaluate location, taxes, property condition, insurance, commute, school considerations, association fees and long-term ownership costs.

11. Don't Skip the Home Inspection

A mortgage appraisal and a home inspection serve different purposes.

Buyers should understand the role of each and discuss appropriate inspection contingencies with their real-estate professional and attorney.

12. Understand the Loan Estimate

The Loan Estimate provides important information about the mortgage transaction, including estimated payment information and closing costs.

The Consumer Financial Protection Bureau provides educational resources for understanding mortgage disclosures.

CFPB Homebuying Resources

13. Prepare for Closing

Before closing, borrowers should continue to protect their financial profile.

Large purchases, new debt, employment changes or unexplained movement of funds can potentially affect mortgage underwriting.

When in doubt, talk with your mortgage professional before making significant financial changes during the mortgage process.

The David Braun Homebuyer Resource Network

This First-Time Homebuyer Resource Center is part of a larger educational library being developed for Illinois and Chicagoland homebuyers.

Illinois FHA Loan Resource Center
FHA financing, down payments, mortgage insurance and property requirements.
2026–2027 Chicagoland Homebuyer Guide
A complete guide to preparing, financing, shopping and closing.
Illinois Mortgage Preapproval Checklist
Documents and information buyers should prepare before applying.
Chicago Mortgage Market Weekly
Mortgage-rate, housing-market and economic updates.
Self-Employed Mortgage Guide for Illinois
Mortgage preparation for business owners and self-employed borrowers.
Cook County Homebuyer Resource Center
Local assistance, taxes, housing resources and homebuying information.

As these resources are published, they will be interconnected to create one comprehensive Chicagoland mortgage education center.

About David Braun

David Braun began his mortgage career in 1997 and provides mortgage education and financing guidance to homebuyers throughout Chicagoland and Illinois.

His goal is simple: help consumers understand the mortgage process before they make one of the largest financial decisions of their lives.

David Braun
Mortgage Loan Officer
NMLS #303007

Your Home. Your Future. My Commitment.

Visit DavidBraunMLO.com

Trusted Homebuyer Resources

Important: This information is provided for educational purposes only and is not a commitment to lend, preapproval, approval or rate quote. Mortgage programs, interest rates, assistance programs, eligibility requirements and underwriting guidelines are subject to change. Verify current requirements before making financial decisions. Equal Housing Opportunity.

David Braun | Mortgage Loan Officer | NMLS #303007

Last updated: October 2026

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Saturday, October 3, 2026