City of Chicago · Cook County · 2026
VA home loans in Chicago, explained with the numbers.
Eligibility, the funding fee, condos, two-flats and Cook County tax breaks, in plain language and checked against VA.gov and the agencies that run them.
- Every figure linked to its source
- Reviewed
- Independent · not VA, not a lender
Start here
Where are you right now?
Do I qualify, and how do I get my COE?
Service time by era, Guard and Reserve rules, surviving spouses, and the certificate your lender needs.
Who qualifies → Ready to buyBuying in Chicago with a VA loan
Pre-approval, VA-approved condo buildings, two-flats, Illinois attorney review and the VA appraisal.
The 8 steps → Already ownRefinancing or behind on payments
IRRRL vs. cash-out, the pending IRRRL fee bill, and the new VA Partial Claim Program.
Owner options →The process
Eight steps to a Chicago VA purchase
- Confirm eligibility and request your COE
- Get pre-approved by a VA lender
- Budget for Cook County taxes, insurance and assessments
- Choose a broker who closes VA deals
- Check condo approval before you offer
- Offer and attorney review, five business days
- VA appraisal and minimum property requirements
- Close and move in, generally within 60 days
Costs
The funding fee, at a glance
| Down payment | First use | After first use |
|---|---|---|
| Under 5% | 2.15% | 3.3% |
| 5% or more | 1.5% | 1.5% |
| 10% or more | 1.25% | 1.25% |
| IRRRL refinance | 0.5% | |
| Disability compensation | Exempt | |
News and updates
What changed for VA borrowers
- Oct. 30, 2026SCRA mortgage interest rate cap: a VA loan servicer settlement and the 6% rule for Chicago service membersA VA loan servicer will pay over $500,000 to settle Justice Department claims it ignored the 6% cap. How the federal and Illinois rules work and how to ask.
- Oct. 18, 2026VA funding fee refund: how Chicago veterans get the fee back after a disability ratingIf your rating is effective before closing, VA refunds the fee. Who qualifies, how to ask, and what it is worth.
- Oct. 18, 2026IHDA help with a VA loan in Chicago: up to $15,000 toward closing costs in 2026All four IHDA programs accept VA loans, and veterans skip Access Home’s first-time buyer rule.
Illinois benefits
Cook County tax breaks for veterans
| Disability rating | Exemption |
|---|---|
| 30% to 49% | $2,500 off EAV |
| 50% to 69% | $5,000 off EAV |
| 70% or higher | Up to $250,000 off EAV |
| Returning from armed conflict | $5,000 off EAV |
Compare
VA vs. FHA in Cook County
| VA | FHA | |
|---|---|---|
| Down payment | 0% | 3.5% |
| Monthly mortgage insurance | None | Yes |
| One-unit limit, 2026 | None* | $541,287 |
| Two-flat limit, 2026 | None* | $693,050 |
*With full entitlement.
Full comparison →More guides
Situations we cover in depth
Benefits for disabled veterans
No funding fee, up to $250,000 off Cook County assessed value, and VA housing grants up to $126,526.
See the benefits → Low ratesAssuming a seller’s VA loan
Take over an existing rate with a 0.5% funding fee, and plan for the equity gap.
How assumptions work → SurvivorsSurviving spouses
Who qualifies, which form to file, and why DIC recipients pay no funding fee.
Spouse eligibility → CompareVA vs. conventional
0% down and no PMI against 3% to 5% down. When each one wins.
Compare loans → CreditAfter bankruptcy or foreclosure
Typical waits: about 2 years after Chapter 7, 12 months into Chapter 13.
Waiting periods → Great LakesBuying near Naval Station Great Lakes
2026 BAH from $2,202 to $3,018 with dependents, Lake County tax breaks and PCS planning.
Great Lakes guide → SuburbsDuPage, Lake, Will and Kane
Same VA rules, different homestead exemptions and transfer taxes.
Suburbs guide → ToolsCalculators
Funding fee, entitlement, residual income and IRRRL break-even.
Funding fee calculator → PropertyWhat you can buy
Houses, VA-approved condos, and two- to four-flats you live in.
Property types →Questions
What Chicago veterans ask first
Do I need a down payment for a VA loan in Chicago?
No, if you have full entitlement and the price is at or below the appraised value. Veterans with an open VA loan may need a down payment on larger loans. Full answer
How much is the VA funding fee in 2026?
2.15% of the loan for a first-use purchase with under 5% down, 3.3% for later use, and 0.5% for an IRRRL. Veterans receiving VA disability compensation pay nothing. Full answer
Can I buy a Chicago condo with a VA loan?
Yes, if the building is a VA-approved condominium project. Search VA's condo report before you make an offer. Full answer
Can I buy a two-flat with a VA loan?
Yes. VA loans cover one to four units with no down payment, as long as you live in one unit. Full answer
Do disabled veterans pay property tax in Cook County?
A 70% or higher service-connected rating takes up to $250,000 off your home’s assessed value, which erases the bill on most homes. Ratings of 30% to 69% take $2,500 or $5,000 off. Full answer
What credit score do I need?
VA sets no minimum. Most lenders want 580 to 620, and IHDA assistance requires 640. Full answer
What will your VA funding fee be?
Enter a price and down payment to see the 2026 fee, or check whether you are exempt.
An independent guide. Not affiliated with or endorsed by the U.S. Department of Veterans Affairs, and not a lender. General information, not legal, tax or financial advice.