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Illinois mortgage lending data

Midwest region · HMDA 2023 reporting year

In Illinois, the 2023 mortgage denial rate was 16.5% — below the national denial rate (-3.1 points vs the 19.6% national rate), ranking it #39 of 51. Lenders originated about 158,841 home-purchase and refinance loans (rank #8). The home-purchase denial rate was 11.6% and refinance 32.0%. By loan type, conventional loans were 83.1%, FHA 12.3%, VA 4.0% and USDA/RHS 0.5%. Informational data, not lending advice.

Source: HMDA Data Browser (FFIEC / CFPB). Data as of June 2026.

Illinois mortgage lending at a glance

IndicatorIllinois
Total originations (purchase + refinance, 2023)158,841
Denied applications31,328
Mortgage denial rate16.5%
Denial-rate rank (1 = highest of 51)#39
Home-purchase denial rate11.6%
Refinance denial rate32.0%
Volume rank (1 = most loans of 51)#8

Source: HMDA Data Browser (FFIEC / CFPB) (2023 reporting year). Data as of June 2026.

Source: HMDA Data Browser (2023), public domain. Denial rate = denied ÷ (originated + denied). Informational only — verify before relying on it.

What the denial rate means

Illinois's mortgage denial rate of 16.5% means that for every 100 applications that were either approved-and-originated or denied, about 17 were turned down. That is lower compared with the national figure of 19.6%. Denial rates are driven by applicant credit scores, debt-to-income ratios, the loan type and local home prices — not only by how strict lenders are. Refinance applications are often denied at a different rate than purchase loans: in Illinois the purchase denial rate was 11.6% versus 32.0% for refinances.

Illinois loan-type mix

How Illinois's 158,841 originations break down by loan program. A higher FHA or VA share usually points to more first-time buyers, lower down payments, or a large veteran population.

Loan typeOriginationsShare
Conventional157,22883.1%
FHA23,30112.3%
VA7,5674.0%
USDA / RHS1,0000.5%

Source: HMDA Data Browser (FFIEC / CFPB) (2023). Data as of June 2026.

See FHA vs VA vs conventional for what each program is. Shares are over loans with a reported type and may not sum to exactly 100% due to rounding.

States with a similar denial rate to Illinois

Illinois and its nearest peers by denial rate. Source: HMDA Data Browser (2023).
StateDenial rateOriginationsFHA shareVA share
Illinois (this state)16.5%158,84112.3%4.0%
Idaho16.5%33,65311.7%6.4%
Montana16.6%14,12510.6%9.0%
Vermont16.7%7,7885.2%3.5%
Colorado16.8%102,03411.4%7.9%
Oregon16.0%51,82310.8%5.0%

Frequently asked questions

What was the mortgage denial rate in Illinois in 2023?

In 2023, the mortgage denial rate in Illinois was about 16.5% — that is, 31,328 applications were denied out of 190,169 that were either originated or denied. That is -3.1 points versus the national rate of 19.6%, and ranks Illinois #39 of 51 from highest to lowest. Figures are from HMDA; verify before relying on them.

How many mortgages were originated in Illinois?

Lenders originated about 158,841 home-purchase and refinance loans in Illinois in 2023 (HMDA reporting year), ranking it #8 of 51 by volume. Of those, the home-purchase denial rate was 11.6% and the refinance denial rate was 32.0%.

What share of Illinois mortgages are FHA or VA loans?

In Illinois, FHA loans made up about 12.3% of originations and VA loans about 4.0%, with conventional loans the largest share at 83.1% and USDA/RHS loans 0.5%. Higher government-backed shares often reflect more first-time and lower-down-payment buyers.

Is it harder to get a mortgage in Illinois than elsewhere?

Illinois's denial rate of 16.5% is below the national denial rate. Denial rates reflect applicant credit, income and debt, loan type and local home prices as much as lender behavior, so a higher rate does not by itself mean stricter lenders. States with the most similar denial rates to Illinois are Idaho, Montana, Vermont.

Keep exploring

Sources & accuracy

All counts are from the HMDA Data Browser (FFIEC / CFPB, 2023 reporting year, public domain). Denial rate, loan-type shares and ranks are transparent calculations over those counts (see methodology). This page is informational and is not financial or lending advice — verify with a licensed lender before making a decision.

Last updated: 2026-06-20