The typical down payment for purchasing a home in Chicago ranges from 10% to 20%, depending on the loan type and the buyer’s financial situation. First-time buyers often aim for 10–15%, while repeat buyers or those with stronger credit may opt for 20% or more to avoid private mortgage insurance (PMI).

In Chicago, the median home price is approximately $450,000, according to the National Association of Realtors (NAR) as of 2023. A 10% down payment on this median price would require $45,000, while a 20% down payment would be $90,000. Loan programs like FHA loans allow down payments as low as 3.5% for qualified buyers, but these require mortgage insurance. Conventional loans, which dominate the market, typically mandate 20% down to eliminate PMI.

Local initiatives, such as the Chicago HomeBuyer Program, offer grants covering up to 6% of the down payment for first-time buyers with incomes below certain thresholds. However, these programs are limited and require strict eligibility criteria. Data from the Chicago Housing Authority (CHA) shows that 60% of recent homebuyers in the city used conventional loans with 20% down, while 25% relied on FHA loans. Jumbo loans, often used for higher-priced properties, may require down payments of 10–20% or more.

The emphasis on larger down payments in Chicago reflects broader national trends, where 20% is considered the benchmark for avoiding long-term mortgage insurance costs. Additionally, rising home prices and interest rates have pushed buyers to save more upfront. A 2023 report by Redfin highlighted that 68% of Chicago buyers increased their down payments to secure favorable loan terms, underscoring the importance of equity in competitive markets. Ultimately, the down payment varies by individual circumstances, loan type, and program availability, but 10–20% remains the standard range.