Reverse Mortgage (HECM) Guide for Illinois Homeowners 62+
Illinois has approximately 740,000 homeowner households led by someone 62 or older. With a median home value of $239,000, Illinois offers homeowners relatively affordable equity relative to national averages — though Chicago-area homes often trade well above that median. For Illinois seniors managing fixed-income retirement in a state with moderate costs, a HECM can provide meaningful supplemental cash flow.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
Check My Eligibility — Free & No Obligation2026 FHA HECM National Lending Limit
Illinois's median home values fall significantly below the 2026 FHA HECM limit of $1,249,125, so the vast majority of Illinois homeowners can access the full available equity on their home through a HECM. Higher-priced North Shore and Lincoln Park properties are exceptions, but most exceed the cap only rarely.
Source: HUD Mortgagee Letter 2025-21
Illinois Reverse Mortgage Protections
Illinois does not require additional reverse mortgage counseling beyond the federal HUD mandate. The Illinois Residential Mortgage License Act (205 ILCS 635) governs mortgage lenders in the state. Illinois seniors also benefit from the Senior Citizens Real Estate Tax Deferral Program, which can delay property tax payments — a useful tool for HECM borrowers managing cash flow.
Source: 205 ILCS 635; 35 ILCS 200/Art. 18; Illinois Department of Revenue
How Much Could You Get? — Illinois
Adjust your age and home value to see a quick estimate. Full calculator →
Estimate based on HUD PLF tables at 6.5% assumed expected rate. Actual amounts depend on formal appraisal and lender terms.
See if you qualify →Source: HUD Principal Limit Factor tables · HUD HECM page
Find a HUD-Approved HECM Counselor in Illinois
Before you can apply for any HECM, federal law requires a one-on-one counseling session with an independent HUD-approved counselor. This is not optional — no FHA-approved lender may accept your application without a valid counseling certificate. The session covers how HECMs work, costs, alternatives, and your rights as a borrower. It typically takes 60–90 minutes and can be done by phone.
Find a HUD Counselor in Illinois →This link opens the HUD HECM Counselor search tool. Filter by state (IL) to find agencies near you.
The 6 Basic HECM Eligibility Requirements
These are the same federal requirements that apply to every HECM in every state, including Illinois.
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Age 62 or older The youngest borrower on the title must be at least 62.
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Your primary home You live in this home as your main residence — not a vacation or rental property.
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Significant home equity You own the home free and clear, or have paid down most of the mortgage — generally 50% or more equity.
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Located in an eligible state FHA HECM is available in all 50 states, Washington D.C., and U.S. territories — including Illinois.
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No existing reverse mortgage Standard HECMs are for first-time reverse mortgage borrowers. Other options exist if you've had one before.
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Plan to stay in your home A HECM is designed for homeowners who intend to remain in their home long-term.
See if a HECM may fit your situation — Illinois homeowners.
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HECM Questions for Illinois Homeowners
Are HECMs available in Illinois?
Yes. HECMs are available statewide in Illinois, including Chicago, suburban Cook County, and downstate communities. Any FHA-approved lender licensed in Illinois can originate a HECM.
Does Illinois require additional reverse mortgage counseling?
No state-specific counseling requirement exists beyond the federal HUD mandate. All HECM applicants must complete a HUD-approved counseling session before any application. Illinois has multiple HUD-approved agencies, particularly in the Chicago metropolitan area.
How do Illinois property taxes interact with a HECM?
Illinois has relatively high property taxes, and HECM borrowers must keep them current. Illinois offers a Senior Citizens Homestead Exemption that reduces assessed value by $8,000 for qualifying homeowners. The Senior Citizens Assessment Freeze Homestead Exemption prevents assessment increases for qualifying seniors with income below $65,000. These programs can reduce the tax burden for HECM holders.
What if I have a HELOC on my Illinois home?
An existing HELOC must be paid off and the line terminated at HECM closing. The payoff comes from HECM proceeds. Illinois lenders will verify there are no subordinate liens remaining after closing.
Where can I find a HUD-approved HECM counselor in Illinois?
Use the HUD HECM Counselor Search (link above) filtered to Illinois. Illinois has a strong network of HUD-approved agencies, including several in Chicago. Phone counseling is available statewide.
Back to Main Guide
Return to the HomeBridge home page for our full HECM education hub.
HomeBridge Home →Eligibility Checklist
Review all six HECM eligibility requirements in detail.
View Eligibility Checklist →Other State Guides
Explore HECM guides for neighboring states.
Ohio HECM Guide → Pennsylvania HECM Guide →HECM Education Hub
Deepen your understanding before talking to a lender. Our plain-language guides cover how HECMs work, who qualifies, and what protections you have.
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