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    HECM (62+) & Jumbo Reverse (55+)

    Reverse Mortgages in Illinois, Texas, Florida & Georgia — HECM (62+) and Jumbo Reverse (55+)

    Last updated November 4, 2026

    There are two paths: an FHA-insured HECM for homeowners 62 and older, and a 55+ proprietary reverse mortgage for younger homeowners or higher-value homes, with loans up to $4 million and no mortgage insurance. The proprietary option is a private loan, not FHA-insured or HUD-backed; loan limits and availability vary by state, and minimum age is higher in some states. Both let you access equity without a required monthly principal-and-interest payment while you meet occupancy, tax, insurance and maintenance obligations. It isn't free money: interest accrues against your equity, and HECM mortgage insurance adds to its balance. Independent counseling is required — before application for a HECM and before closing for the proprietary loan — so you understand the trade-offs before you commit.

    Apply NowCall 630-357-1600

    This is not a commitment to lend. Rates, terms, and programs subject to change without notice. All loans subject to credit approval.

    Homeowners 55 and older reviewing reverse mortgage options with ABS Home Mortgage

    Which Reverse Mortgage Fits You?

    FHA-Insured HECM — age 62+

    • FHA-insured
    • 2026 limit $1,249,125
    • Upfront and annual MIP
    • Lump sum, line of credit, monthly payments
    • Strongest non-borrowing spouse protections, when eligible

    55+ Proprietary (Jumbo) Reverse Mortgage

    • Age 55+ in most states; higher in some states
    • Up to $4 million, subject to state loan limits
    • No MIP
    • Non-recourse
    • Purchase or refinance
    • Second-lien option to keep your first mortgage (refinance only)
    • Private loan, not FHA-insured or HUD-backed; subject to state availability

    We show you both options side by side, where available in your state, before you choose.

    Program terms as of October 24, 2026; subject to change, state availability and credit approval. Minimum age is higher in some states; loan limits vary by state.

    Local reverse mortgage guidance

    Reverse Mortgage Details Vary by State and Property

    Choose your state to see the costs and property details we review first.

    Reverse Mortgages in Illinois

    We work reverse mortgage files across the Chicago suburbs from our Naperville office. Illinois carries one of the highest property tax burdens in the country, and property taxes don't go away with a reverse mortgage — you still have to pay them. For DuPage and Cook county homeowners, that's usually the first thing we walk through in the financial assessment, since a high tax bill can affect how much of your proceeds get set aside to cover future payments. We also check FHA condo approval before you assume a Chicago-area building qualifies — not every association is on the list. The 55+ proprietary option is available subject to state guidelines; minimum age is higher in some states, and loan limits and availability vary by state.

    Local reverse mortgage service

    Serving Homeowners Across Illinois, Texas, Florida & Georgia

    Explore reverse mortgage guidance for homeowners in the communities we serve.

    How a Reverse Mortgage Works

    The loan gives you several ways to use your equity while preserving ownership and non-recourse protection.

    No required monthly mortgage payment

    As long as you live in the home and keep property taxes, insurance, and maintenance current, there's no principal-and-interest bill.

    You keep the title

    A reverse mortgage is a lien against your home, not a sale. You or your estate keep ownership and any equity that remains.

    Non-recourse — never owe more than the home is worth

    Both products are non-recourse. HECM protection comes through FHA insurance; proprietary protection comes through its loan terms. You or your estate owe no more than the loan balance or the home's value, whichever is less.

    Flexible ways to receive the money

    HECM offers a lump sum, line of credit, monthly payments or a combination. The proprietary loan offers a fixed-rate lump sum or an adjustable-rate line of credit with a minimum portion drawn at closing.

    HECM vs. 55+ Jumbo Reverse vs. HELOC vs. Selling

    FeatureHECM55+ Jumbo ReverseHELOCSell & downsize
    Monthly payment requiredNone required if occupancy, tax, and insurance conditions are metNone required if occupancy, tax, and insurance conditions are metYes, interest and often principal after the draw periodNo mortgage at all
    Minimum age6255 (higher in some states)NoneNone
    How you receive fundsLump sum, line of credit, monthly payments, or combinationFixed-rate lump sum or adjustable line of creditDraw as needed against a credit lineOne-time sale proceeds
    What happens to your equityBalance grows over time as interest and MIP accrue, reducing remaining equityBalance grows as interest accrues (no mortgage insurance)Balance only grows if you draw and don't repayConverts fully to cash minus selling costs, no remaining home equity
    Who keeps the titleYou or your estateYou or your estateYouThe buyer, once sold
    What's owed at the endNever more than the home's value, non-recourseNever more than the home's value, non-recourseThe full balance, regardless of home valueNothing, there's no loan
    Mortgage insuranceUpfront 2% + 0.5% annual MIPNoneNoneN/A
    Maximum loan$1,249,125 (2026)Up to $4,000,000Varies by lenderN/A

    These are different ways to access equity, not interchangeable loan products. Costs, eligibility, and long-term equity outcomes differ. Terms as of October 24, 2026; subject to change and credit approval. The proprietary loan is private, not FHA-insured or HUD-backed; subject to state availability, with higher minimum ages in some states and state-dependent loan limits.

    Who qualifies for a reverse mortgage?

    For an FHA-insured HECM, the home must be your primary residence, occupied for at least six months each year, and you need meaningful equity. If you have an existing mortgage, it is typically paid off at closing from the HECM proceeds.

    The financial assessment looks at residual income and 24 months of payment history on housing obligations, not a single credit score cutoff. For borrowers whose history shows risk, a Life Expectancy Set-Aside may reserve part of the proceeds for future taxes and insurance instead of automatically denying the loan.

    For HECM, HUD-approved counseling is mandatory before application. Eligible properties include single-family homes, FHA-approved condos, 1–4 unit properties when you occupy one unit, and certain manufactured homes. A younger spouse may receive non-borrowing spouse protections when properly listed at closing.

    The 55+ proprietary reverse mortgage is a private loan, not FHA-insured or HUD-backed, for a primary residence. Subject to state availability; minimum age is higher in some states, and loan limits vary by state. Financial assessment reviews residual income, credit and property-charge history. Strong credit may allow streamlined income documentation; a tax and insurance set-aside may be required. Eligible properties include single-family homes, PUDs, townhomes, 2–4 units and some non-FHA-approved condos through single-unit review. Independent reverse mortgage counseling is required before closing. Unlike HECM, it has no non-borrowing spouse deferral protection: an age-eligible spouse living in the home generally must be a borrower. Non-occupant co-borrowers are not allowed.

    For the FHA-insured HECM, as of May 25, 2025, HUD Mortgagee Letter 2025-09 changed residency eligibility: FHA-insured loans, including HECM, are no longer available to non-permanent residents. Borrowers must be U.S. citizens or lawful permanent residents.

    Minimum age: 62 (HECM) · 55 (proprietary, most states)

    HECM borrowers must be at least 62; eligible non-borrowing spouses may receive deferral protection. The proprietary minimum is 55 in most states, higher in some states, and it does not provide that HECM protection.

    HECM at a Glance

    The core 2026 HECM limits and costs. Your available proceeds depend on age, interest rates, property value, and required payoffs or set-asides.

    Minimum age
    62
    Upfront MIP
    2% of Maximum Claim Amount
    Annual MIP
    0.5% of loan balance
    Origination fee
    Capped at $6,000 (2% of first $200,000 of value + 1% of the remainder)
    2026 lending limit
    $1,249,125, flat nationwide (unlike standard FHA, this doesn't vary by county)
    Occupancy
    Primary residence, 6+ months/year
    Repayment trigger
    Sale, permanent move (including 12+ consecutive months in a healthcare facility with no co-borrower at home), or death of the last borrower

    55+ Proprietary Reverse at a Glance

    A private loan, not FHA-insured or HUD-backed. Terms as of October 24, 2026; subject to change and state availability. Minimum age is higher in some states; loan limits vary by state. The line of credit requires a minimum draw at closing.

    Minimum age
    55 (higher in some states)
    Maximum loan
    Up to $4,000,000
    Mortgage insurance
    None
    Rate options
    Fixed (lump sum) or adjustable (line of credit)
    Purchase
    Yes, primary residence
    Keep your first mortgage
    Second-lien option up to $1,000,000 (refinance only)
    Prepayment penalty
    None
    Counseling
    Required

    What You'll Provide

    • Proof of age and photo ID
    • Property tax and homeowners insurance statements
    • Existing mortgage statement, if any
    • 24 months of payment history on housing-related obligations
    • Certificate of completed independent reverse mortgage counseling (HUD-approved for HECM)
    • Income documentation for the residual-income assessment (Social Security, pension, investment income statements)
    • HOA statement, if applicable

    We'll review the property obligations and income documents before you spend money on an appraisal.

    Reverse Mortgage FAQs

    62 for the FHA-insured HECM; 55 in most states for our private proprietary reverse mortgage, with a higher minimum in some states. Spouse rules differ: eligible HECM non-borrowing spouses may have deferral protection, but the proprietary loan does not provide that protection. An age-eligible spouse living in the home generally must be a borrower on the proprietary loan.

    Yes — both a HECM and a proprietary reverse mortgage are liens against your property, not sales. You keep the title and any remaining equity.

    No required principal-and-interest payment, as long as you live in the home and keep property taxes, insurance, and maintenance current.

    The FHA-insured HECM uses the 2026 national limit of $1,249,125; the proprietary reverse mortgage offers loan amounts up to $4,000,000, subject to state loan limits and availability. Actual proceeds depend on the youngest borrower's age, rates, home value and existing loan payoffs. Terms as of October 24, 2026; subject to change and credit approval.

    For HECM, counseling typically costs $125 to $200 and is required before application. Independent reverse mortgage counseling is also required before closing on the proprietary loan. You review costs and trade-offs with someone independent before committing. Costs as of October 24, 2026; subject to change.

    HECM has a 2% upfront mortgage insurance premium on your Maximum Claim Amount, an origination fee capped at $6,000, plus appraisal and counseling fees paid regardless of whether the loan closes. The proprietary loan has no upfront or annual mortgage insurance premium, but has its own origination and closing costs. Terms as of October 24, 2026; subject to change.

    When the last borrower sells the home, moves out permanently, or passes away. Heirs can pay it off and keep the home, sell it and keep any remaining equity, or walk away owing nothing beyond the home's value.

    Both products are non-recourse: you or your estate owe no more than the loan balance or the home's value, whichever is less. HECM protection comes through FHA insurance; proprietary protection comes through its loan terms, not FHA insurance or HUD backing.

    Both require a primary residence. HECM permits single-family homes, FHA-approved condos, 1–4 unit properties where you occupy one unit and certain FHA-eligible manufactured homes. The proprietary loan permits single-family homes, PUDs, townhomes, 2–4 units and some non-FHA-approved condos through single-unit review, subject to underwriting and state availability.

    Yes. For homeowners 55 and older — or homes worth more than the HECM limit — we offer a proprietary (jumbo) reverse mortgage with loan amounts up to $4 million and no mortgage insurance. It is not FHA-insured, and minimum age and availability vary by state.

    In most states, our 55+ proprietary reverse mortgage may be available at age 55, subject to underwriting and state availability; minimum age is higher in some states. It is a private loan, not FHA-insured or HUD-backed. HECM still requires a borrower age of at least 62.

    HECM is FHA-insured for homeowners 62+ and has upfront and annual mortgage insurance, a 2026 limit of $1,249,125 and eligible non-borrowing spouse deferral protections. The proprietary loan is private, not FHA-insured or HUD-backed, with up to $4 million and no mortgage insurance. Both are non-recourse, but the proprietary loan has no HECM spouse deferral protection. Subject to state availability; minimum age is higher in some states and loan limits vary by state. Terms as of October 24, 2026; subject to change and credit approval.

    Eligible homeowners may use a proprietary second-lien reverse mortgage behind a current, fully amortizing first mortgage. Loan amounts are up to $1,000,000; this option is refinance only, not purchase. It is a private loan, not FHA-insured or HUD-backed. Subject to state availability; minimum age is higher in some states and loan limits vary by state. Terms as of October 24, 2026; subject to change and credit approval.

    Yes. HECM for Purchase and the proprietary purchase option can finance a new primary residence, subject to eligibility and credit approval. You must move into the home promptly. The proprietary purchase option is not FHA-insured or HUD-backed and is subject to state availability; minimum age is higher in some states and loan limits vary by state. The second-lien proprietary option is not available for purchase.

    An eligible HECM non-borrowing spouse may have deferral protections when program conditions are met. The proprietary reverse mortgage does not offer HECM's non-borrowing spouse deferral protection, so an age-eligible spouse living in the home generally needs to be a borrower. Texas has its own reverse mortgage rules, including stricter requirements for a non-borrowing spouse.

    See whether a HECM or a 55+ reverse mortgage fits your retirement plan

    We'll explain the available proceeds, costs, required set-asides, and long-term equity impact before you decide whether to move forward.

    Apply NowCall 630-357-1600

    Also see: refinance options · all loan products

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