Reverse Mortgages (HECM) in Illinois, Texas, Florida & Georgia
Last updated September 27, 2026
A HECM lets homeowners 62 and older convert home equity into cash — a lump sum, a line of credit, or monthly payments — without a required monthly mortgage payment. You keep the title, and the loan is repaid only when you sell, move out permanently, or pass away. It isn't free money: interest and mortgage insurance accrue against your equity every month, and HUD requires independent counseling before you apply so you understand the trade-offs before you commit.
This is not a commitment to lend. Rates, terms, and programs subject to change without notice. All loans subject to credit approval.
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 HECM 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.
Serving Homeowners Across Illinois, Texas, Florida & Georgia
Explore reverse mortgage guidance for homeowners in the communities we serve.
How an FHA-Insured HECM 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 HECM 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
When the loan comes due, you or your heirs never pay more than the home's value, even if the balance has grown larger. FHA's mortgage insurance covers the difference to the lender.
Flexible ways to receive the money
Lump sum, a growing line of credit, fixed monthly payments for a set term or for life, or a combination.
HECM vs. HELOC vs. Selling & Downsizing
| Feature | HECM | HELOC | Sell & downsize |
|---|---|---|---|
| Monthly payment required | None required if occupancy, tax, and insurance conditions are met | Yes, interest and often principal after the draw period | No mortgage at all |
| Minimum age | 62 | None | None |
| How you receive funds | Lump sum, line of credit, monthly payments, or combination | Draw as needed against a credit line | One-time sale proceeds |
| What happens to your equity | Balance grows over time as interest and MIP accrue, reducing remaining equity | Balance only grows if you draw and don't repay | Converts fully to cash minus selling costs, no remaining home equity |
| Who keeps the title | You or your estate | You | The buyer, once sold |
| What's owed at the end | Never more than the home's value, non-recourse | The full balance, regardless of home value | Nothing, there's no loan |
These are different ways to access equity, not interchangeable loan products. Costs, eligibility, and long-term equity outcomes differ.
Who qualifies for a reverse mortgage?
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.
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.
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
The youngest borrower must be at least 62. A younger spouse can be listed as an eligible non-borrowing spouse and may receive protections if the borrowing spouse dies or leaves the home.
Program 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
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 HUD-approved counseling
- 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
See whether a HECM 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.
Also see: refinance options · all loan products