--- title: "Illinois Reverse Mortgage Guide (HECM 2026)" description: "Illinois HECM reverse mortgage guide for homeowners 62+. Learn how FHA lending limits apply to Illinois properties, what state senior tax programs can help re" lang: en json-ld: | [ { "@context": "https://schema.org", "@type": "WebSite", "name": "HECMAcademy", "url": "https://hecmacademy.com", "description": "Independent, plain-English reverse mortgage education for U.S. homeowners age 62 and older. 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Includes a free calculator.", "url": "https://hecmacademy.com/reverse-mortgage/illinois", "areaServed": { "@type": "State", "name": "Illinois" }, "provider": { "@type": "Organization", "name": "HECMAcademy", "url": "https://hecmacademy.com" } }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "Are HECMs available in Illinois?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "name": "Does Illinois require additional reverse mortgage counseling?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "name": "How do Illinois property taxes interact with a HECM?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "name": "What if I have a HELOC on my Illinois home?", "acceptedAnswer": { "@type": "Answer", "text": "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." } }, { "@type": "Question", "name": "Where can I find a HUD-approved HECM counselor in Illinois?", "acceptedAnswer": { "@type": "Answer", "text": "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." } } ] } ] --- Free HECM guidance — no sales pressure Mon–Fri, 9am–6pm ET [Contact](/contact) [![HECMAcademy — reverse mortgage education](/__l5e/assets-v1/11c6d22b-7f84-4add-8068-34dad2c8a5b7/hecmacademy-logo.png)](/) [How it works](/#how) Learn [Free Guide](/guide)[FAQ](/faq)[Blog](/blog)[Retirement Tax Guide](/retirement-tax-guide)[Heirs Guide](/heirs-guide) By State [California](/reverse-mortgage/california)[Texas](/reverse-mortgage/texas)[Florida](/reverse-mortgage/florida)[Arizona](/reverse-mortgage/arizona)[Colorado](/reverse-mortgage/colorado)[Virginia](/reverse-mortgage/virginia)[Utah](/reverse-mortgage/utah)[Washington](/reverse-mortgage/washington)[Ohio](/reverse-mortgage/ohio)[Illinois](/reverse-mortgage/illinois)[Maryland](/reverse-mortgage/maryland)[North Carolina](/reverse-mortgage/north-carolina)[Oregon](/reverse-mortgage/oregon)[Hawaii](/reverse-mortgage/hawaii) [All states →](/reverse-mortgage) [Calculator](/calculator)[About](/about) [Expert advisor (888) 203-8887 Mon–Fri, 9am–6pm ET ](tel:+18882038887)[Check Eligibility](/#quickcheck) [](tel:+18882038887)[Check Eligibility](/#quickcheck) [HECMAcademy](/) / [State Guides](/reverse-mortgage) / Illinois State Guide # 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) 2026 FHA Lending Limit ## $1,249,125 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 ## HUD-Approved Counseling in Illinois Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. [Find a HUD-approved counselor in Illinois →](https://hudapps.hud.gov/HUDApps/HECMCounselorsApp/?state=IL) ## Illinois HECM FAQ ### 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. ### Compare nearby states - [Reverse Mortgage Guide for Ohio →](/reverse-mortgage/ohio) - [Reverse Mortgage Guide for Pennsylvania →](/reverse-mortgage/pennsylvania) [Estimate your HECM — Illinois homeowners →](/#prequal?src=state_illinois) Reviewed by the HECMAcademy Editorial Team · Last updated June 2026 · [How we vet this content](/about#editorial-standards) ## Get the Free HECM Guide (PDF) An 8-page plain-English guide to how the FHA HECM works — sent straight to your inbox. Company website First nameLast name EmailPhoneZIP code Age range 55-6162-6970-7980+ I agree to receive calls and texts from HECM Academy about reverse mortgages. Not required to get the guide. Reply STOP to opt out. Send Me the Guide We never sell your information. [Privacy policy](/privacy-policy). HECMAcademy is not a lender. This is educational information only. By submitting, you agree to receive our free HECM educational guide and follow-up emails. Unsubscribe anytime. Talk to a HUD-approved counselor Free, independent, and required before any HECM. Not affiliated with HECMAcademy. [1-800-569-4287](tel:+18005694287)[Search by ZIP →](https://hud.gov/program_offices/housing/sfh/hcc/hcs.cfm) HECMAcademy Independent education for homeowners 62+ exploring HECM and jumbo proprietary reverse mortgages. Not a lender, broker, or financial advisor. 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HECMAcademy is an independent consumer education platform. We are not affiliated with, endorsed by, or connected to any lender, mortgage banker, or bank, including any company using a similar name. [Check Eligibility](/#quickcheck)[Call](tel:+18882038887)