No. You stay the owner and can remain in the home as long as the occupancy, maintenance, tax, and insurance obligations are met.

What happens to the inheritance?

Heirs can sell and keep the remaining equity, or refinance and keep the home. HECM is non-recourse, so the debt cannot exceed the home's value at settlement.

Yes. HECM loans are FHA-insured, and independent HUD-approved counselling is required before closing. That counselling is not a formality — it exists because the product is easy to structure badly.

Reverse Mortgage in Aurora, IL

The HECM in short

A HECM is an FHA-insured reverse mortgage for owners 62 and up. Funds come as a lump sum, a credit line, monthly payments or a combination. You must live there, keep the home up, and stay current on taxes and insurance.

HUD-approved counseling is required before closing.

Aurora specifics

The 2024 ACS median value in Aurora was $289,100. Payout depends on age, value and rates, so we run your numbers. Your tax bill comes from Kane, DuPage, Will or Kendall, depending on the parcel.

Aurora reverse mortgage questions

Does it matter which county my Aurora home is in?: For the tax bill, yes. That is the cost you keep paying. The HECM itself works the same in all four counties.
Can my kids keep the Aurora house after I die?: They can pay off the loan, often by refinancing, or sell and keep the remaining equity. A HECM is non-recourse.
I have a small mortgage left on my Aurora home. Can a HECM pay it off?: Yes, the existing loan is paid from HECM proceeds at closing, if the numbers work.

See the Aurora overview.

Sources

The three questions everybody asks

Do I lose the home?: No. You stay the owner and can remain in the home as long as the occupancy, maintenance, tax, and insurance obligations are met.
What happens to the inheritance?: Heirs can sell and keep the remaining equity, or refinance and keep the home. HECM is non-recourse, so the debt cannot exceed the home's value at settlement.
Is it regulated?: Yes. HECM loans are FHA-insured, and independent HUD-approved counselling is required before closing. That counselling is not a formality — it exists because the product is easy to structure badly.

What it costs

A HECM carries an upfront mortgage insurance premium, an annual premium on the outstanding balance, origination and closing costs, and a servicing structure. The balance grows over time rather than amortising down. That is the mechanism, not a catch — but it means the cost of holding one for twenty years is a very different number from the cost of holding one for five.

Considering a reverse mortgage in Aurora?

You get the mechanics, the cost over your expected time horizon, and the alternatives — downsizing, a HELOC, a standard refinance — compared side by side. HUD counselling comes before closing regardless. There is no reason to rush this.

Get a second opinion

Reverse mortgage in other markets

A reverse mortgage is a loan against your home and must be repaid. Borrowers remain responsible for property taxes, homeowners insurance, and maintenance. Independent HUD-approved counselling is required before closing. Nothing here is a rate quote, an offer, or a commitment to lend.