Welcome to the Illinois reverse mortgage help center.

Larry McAnarney is your Illinois licensed Reverse Mortgage Specialist

Please contact Larry for additional details and program offerings. Contact us if you would like to know how much money is available to you or request a reverse mortgage quote and fill out the appropriate information.

I have been educating and answering questions for homeowners and their families about reverse mortgage programs since 1999.

For so many homeowners age 62 and older, a Home Equity Conversion Mortgage (HECM) – also known as a reverse mortgage loan – could be a flexible and effective way to turn the equity you have in your home into funds you can use.

My experience is broad and deep in financial services dedicated to senior households. Today, as a Reverse Mortgage Specialist, my focus is on helping homeowners 62 and older, and their families, understand the reverse mortgage loan process from end to end.

Some Fast Facts About Larry McAnarney

• Co-Author, The Road to Success (Celebrity 2016), Amazon Bestseller
• Quoted in Bloomberg Businessweek (Dec 2015)
• Featured in The Reverse Review (Jan 2016)

Professional Affiliations

• Member of the Society of Certified Senior Advisors since 2006
• Member of the Board of Directors of the Financial Planners Association, West Surburban Council
• Volunteer, AARP Representative Payee Program since 2009
• Member of the National Association of Insurance and Financial Advisors

Illinois Specific Reverse Mortgage Information

Please Contact Us to receive reverse mortgage information from a company that's experienced and licensed in Illinois.

Basic Reverse Mortgage Requirements

• Borrowers must be age 62 years or older
• Own their home and have enough equity to qualify
• Occupy the home as primary residence
• Receive counseling by an approved HUD/FHA counselor
• The home must be in reasonably good repair

What is a reverse mortgage?

A Home Equity Conversion Mortgage, or HECM, is a flexible financial product designed for homeowners aged 62 and older. The loan is insured by the Federal Housing Administration (FHA) so that borrowers will not owe more than the value of the home at maturity. With a HECM, also known as a reverse mortgage, you can convert some of the equity in your home into cash to meet financial goals, such as supplementing retirement income, buying a new home, maintaining a quality lifestyle, or preparing for a more secure and rewarding financial future.

All that happens all without giving up ownership or control of your home and without having to make monthly mortgage payments. Of course, as homeowners, you are responsible for occupying the home as your primary residence, keeping up with property maintenance, and staying current on paying property taxes, required insurance and any homeowners’ fees.

Instead of repaying the loan in monthly installments, you or your estate repay the principal, accrued fees and interest when you no longer live in the home.

When it comes to getting your payment, you determine how you’d like to receive your funds based on your individual financial needs and objectives. For example:

• A monthly payment will supplement your income each month.
• A lump sum will provide your available funds at once, subject to initial disbursement limits.
• A line of credit will allow you to withdraw cash as you need it.
• Any combination of the above will give you the added value of flexibility to meet your personal financial requirements.

 

Can a reverse mortgage be refinanced?

What is a Home Equity Conversion Mortgage (HECM)?

What has to be repaid when the loan becomes due?

How can I use the proceeds?

Will a reverse mortgage affect my government benefits?

Are interest rates fixed or variable?

What is a reverse mortgage?

How can I receive the funds from a reverse mortgage?

How is a reverse mortgage different from a traditional home equity loan or line of credit?

Will I have to pay any fees?

How much money can I get?

Will I be taxed on my reverse mortgage proceeds?

What if I still owe money on a first or second mortgage?

When will the principal and interest charges become due?

What if one of the co-borrowers passes away or must move out for health reasons?

What are the basic requirements for a reverse mortgage?

Can I use a reverse mortgage to purchase a home?

Can a reverse mortgage be refinanced?

Yes, refinancing is possible. This option may be to your advantage if your home increases in value, making more funds available.

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What is a Home Equity Conversion Mortgage (HECM)?

A HECM is a reverse mortgage loan that's insured by the Federal Housing Administration (FHA).

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What has to be repaid when the loan becomes due?

You’ll repay the loan balance, any fees that have been added, and the accrued interest. Homeowners (or their heirs) usually choose to do this through the sale of the home or other assets. Repaying the loan by refinancing through a conventional mortgage is also an option.

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How can I use the proceeds?

Use the proceeds for the things you need and want. For example: establishing a “rainy day” fund for the unexpected, paying monthly bills, making home improvements, paying for health care, covering the cost of in-home services, making a major purchase such as a new vehicle, and more.

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Will a reverse mortgage affect my government benefits?

The funds from a reverse mortgage generally do not affect regular Social Security or Medicare benefits. However, needs-based benefits, such as Medicaid and Supplemental Security Income (SSI), may be impacted. One of our licensed reverse mortgage specialists can provide additional general information, but you should contact a financial professional or government benefits specialist about your particular situation.

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Are interest rates fixed or variable?

 

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What is a reverse mortgage?

A reverse mortgage is a home-secured loan that’s exclusively for homeowners and homebuyers age 62 and older. It allows borrowers to convert some of the equity in their home into income-tax-free funds. (Not tax advice, consult a tax professional.) There are different loan products to choose from that offer you options on what interest rate you are charged, how much money you can access, and how you receive your payments. Unlike a regular “forward” mortgage or traditional home equity loan or home equity line of credit, there are no monthly principal and interest payments as long as at least one of the borrowers lives in the home as their primary residence. As with any mortgage, in order for the loan to remain in good standing, the borrower must also keep up with property-related taxes, insurance and upkeep.

 

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How can I receive the funds from a reverse mortgage?

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How is a reverse mortgage different from a traditional home equity loan or line of credit?

A reverse mortgage offers certain advantages:

• With a traditional home equity loan or home equity line of credit, you must make monthly principal and interest payments on the balance while you live in the home — with a reverse mortgage, you don't. Your reverse mortgage balance, including accrued interest and fees, does not have to be repaid until you sell the home or permanently leave the home, as long as you meet your loan obligations (which includes keeping current with property-related taxes, insurance and upkeep).
• With a reverse mortgage line of credit, the unused amount in your credit line actually grows over time — giving you access to more available funds. This means that the less you take out up front, the more will be available to you later.
• And the lender cannot “freeze” or reduce the line of credit, as long as you fulfill your loan obligations — so it will be there if and when you need it.

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Will I have to pay any fees?

With the exception of a fee for government-required reverse mortgage counseling, most of the fees associated with a reverse mortgage can be financed with your loan, so there’s no immediate out-of-pocket cost. The costs are added to the loan amount (“principal”) and paid along with the accrued interest when the loan becomes due. Depending on the loan option you choose, these fees may include an origination fee, closing costs, a mortgage insurance premium (required for HECM loans) and a monthly servicing fee.

Ask us about our "Low-Cost HECM" pricing option, which eliminates nearly all origination and closing costs.

 

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How much money can I get?

The specific amount depends on several factors, including:

• Your age
• The type of reverse mortgage you select
• Current interest rates
• Appraised value of your home
• Federal Housing Administration (FHA) lending limits

HUD also regulates the amount of money that can be withdrawn during the first year of your reverse mortgage. This is to help preserve your home equity for a longer period of time.

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Will I be taxed on my reverse mortgage proceeds?

Typically, reverse mortgage loan funds are not subject to income tax. Contact your tax advisor for additional details.

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What if I still owe money on a first or second mortgage?

You may still be eligible. Proceeds from your reverse mortgage would first be used to pay off any existing mortgage(s). This means the balance of your existing mortgage(s) will be added to the balance of your reverse mortgage. A licensed RMF loan officer can help you find out if you are eligible.

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When will the principal and interest charges become due?

The loan must be paid in full when one of the following occurs:

• A “maturity event” — the loan becomes due and payable when the home is sold, or the borrower or non-borrowing spouse meeting certain criteria no longer occupies the home as their principal residence (i.e., passes away, moves out, or vacates the property for more than 12 months).
• You fail to pay property taxes or homeowners insurance.
• You let the property deteriorate beyond what is considered reasonable wear and tear, and do not correct the problem.

 

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What if one of the co-borrowers passes away or must move out for health reasons?

The other borrower continues to own and live in the home — and enjoy all the benefits of their reverse mortgage.

 

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What are the basic requirements for a reverse mortgage?

To be eligible for a reverse mortgage, you’ll need to meet the requirements set by the federal government:

• All borrowers must be age 62 or older (this applies to all co-owners listed on the home’s title).
• The home must be your principal residence. And it must meet standards set by the United States Department of Housing and Urban Development (HUD) on property type and condition. You may be able to use your reverse mortgage to pay for any required repairs in order to meet these standards.
• Eligible property types include single-family homes, 2- to 4-unit properties, manufactured homes meeting certain criteria, condominiums that are approved by the Federal Housing Administration (FHA), and townhouses. Co-ops do not qualify.

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Can I use a reverse mortgage to purchase a home?

Yes, with the HECM (Home Equity Conversion Mortgage) for Purchase loan, qualified borrowers can use their loan proceeds to buy a home that better suits their needs and lifestyle. It’s a home financing option that can make it easier for buyers age 62 and older to afford the home they want, while preserving more of their savings.

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