HEI Facts.com

State

Home equity investments in Illinois

1 of the six major home equity investment providers operates in Illinois. Illinois has an HEI-specific law or rule in effect.

Providers operating in Illinois

1 of the six major providers says it operates in Illinois. Availability can vary by county.

  • Pointup to 30-year term · cost cap 18% a year · about 14.3% a year in our standard example

Provider lists come from each provider's own availability page. All states.

See how these providers' costs change with home prices in the 2026 study.

Laws, rules, and reports

IllinoisRegulationIn effectEffective June 1, 2026

Illinois adopts rules for shared appreciation agreements

The Illinois Department of Financial and Professional Regulation adopted rules implementing the state's shared appreciation agreement law, effective June 1, 2026, covering counseling, disclosures, and recordkeeping.

We could not access the rule text in the Illinois Register directly. The details here are as reported by the law firms linked below.


Sources: Mayer Brown: Illinois adopts regulations secondary · Weiner Brodsky Kider: IDFPR adopts rules secondary

IllinoisLawIn effectEnacted 2024

Illinois treats shared appreciation agreements as mortgage loans (Public Act 103-1015)

Amends the Residential Mortgage License Act so that a "mortgage loan" includes one in which funds are advanced through a shared appreciation agreement.

  • Requires counseling before a borrower takes any legally binding action on a shared appreciation agreement, and the borrower may not waive it.
  • Lets the state's financial regulator adopt rules for these agreements, which it did in 2026.

Sources: Illinois General Assembly: SB 3551 as enacted

Counseling is required here. Illinois requires counseling before you sign an HEI.

Enforcement and court cases

We found no enforcement action or court case involving home equity investments in Illinois.

Bills

We found no pending HEI bill in Illinois.

HELOC denials in Illinois

In 2025, lenders denied 34.8% of the 49,565 HELOC applications they decided in Illinois (national: 32.9%). Most common first reason: debt-to-income ratio. See the full HELOC denial data.

HELOCs by metro area in Illinois

Chicago, IL (37% denied) · Elgin, IL (32% denied) · Lake County, IL (32% denied) · Peoria, IL (23% denied) · Rockford, IL (36% denied) · Springfield, IL (21% denied) · Bloomington, IL (24% denied) · Champaign, IL (29% denied)

See reasons and rates for each metro area.

Federal activity

2 federal items pending that would apply in every state: Home Equity Lending Integrity Act (S. 4803), Shared Home Appreciation for Residential Equity Act (H.R. 8116).

Before you sign in Illinois

  1. Check the company's license at NMLS Consumer Access.
  2. Expect required homeowner counseling before you sign. Illinois's rules call for it.
  3. Ask for the settlement amount at 0%, 4%, and 8% yearly appreciation, and for when you might settle.
  4. Convert each offer to an effective yearly cost and compare it with a HELOC or home equity loan.

Reference information, not legal advice. Know of something we're missing in Illinois? Tell us.