Reverse Mortgage
Turn your home equity into retirement income
A reverse mortgage — most commonly the FHA-backed Home Equity Conversion Mortgage (HECM) — allows homeowners aged 62 or older to access their home equity as tax-free proceeds without making monthly mortgage payments. You stay in your home, retain the title, and repayment is deferred until you sell, move out, or pass away. It's a legitimate retirement-planning tool for the right situation.
Why choose this loan
Benefits of a Reverse Mortgage
Eliminate your monthly mortgage payment
For retirees on fixed incomes, removing the monthly mortgage payment can dramatically improve cash flow. You remain responsible for taxes, insurance, and home maintenance — but the P&I payment disappears.
Multiple ways to access funds
You can receive reverse mortgage proceeds as a lump sum, a line of credit, monthly installments, or a combination — giving you complete flexibility to match your financial plan.
Non-recourse loan protection
HECM reverse mortgages are non-recourse loans. If the loan balance eventually exceeds the home's value, neither you nor your heirs owe more than what the home sells for — the FHA insurance covers the difference.
Growing line of credit
An unused HECM line of credit grows at the same rate as the loan's interest rate, meaning the available credit increases over time — a unique feature with significant long-term planning value.
Eligibility
Do you qualify?
Typical guidelines for a Reverse Mortgage. Final eligibility is determined during underwriting.
- All borrowers on title must be age 62 or older
- Must occupy the property as primary residence
- Must have sufficient equity in the home (typically 50%+ depending on age and rates)
- Must complete a mandatory HUD-approved reverse mortgage counseling session
- Must remain current on property taxes, homeowners insurance, and HOA fees
- Property must meet HUD/FHA minimum property standards; condos must be FHA-approved
Sample scenarios
Illustrative Reverse Mortgage rates
HECM Fixed rate
6.875%
Illustrative; lump-sum option only
HECM Adjustable (LIBOR/SOFR)
6.25%
Illustrative start rate; adjusts annually or monthly
Upfront MIP
2.00%
Of appraised value or HECM limit, whichever is less
Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.
How it works
Your path to approval
- 1
HUD-approved counseling
Federal law requires you to complete a counseling session with an independent HUD-approved counselor before applying. We'll provide a list of approved counselors and help you schedule.
- 2
Application and financial assessment
We'll review your income, credit history, and property details. A financial assessment ensures you have the capacity to maintain taxes, insurance, and property charges going forward.
- 3
Appraisal and underwriting
An FHA appraisal determines the property value. Underwriting verifies all program requirements are met. The HECM loan limit for 2026 is $1,149,825.
- 4
Closing and fund disbursement
At closing you receive your proceeds per your chosen disbursement method. Any existing mortgage is paid off first; remaining equity flows to you.
Reverse Mortgage vs. Home Equity Line of Credit
| HECM Reverse Mortgage | HELOC | |
|---|---|---|
| Monthly payment | None required | Required (interest-only or P&I) |
| Age requirement | 62+ required | None |
| Repayment trigger | Sale, move-out, or death | Draw period ends or balloon |
| Credit line growth | Unused LOC grows over time | Fixed; may be frozen by lender |
| FHA insurance | Yes (non-recourse protection) | No |
Frequently asked questions
Do I still own my home with a reverse mortgage?
Yes. You retain the title to your home throughout the life of the reverse mortgage. The lender places a lien on the property — just as with any mortgage — but you remain the owner and can sell or refinance at any time.
When does a reverse mortgage have to be repaid?
The loan becomes due when the last borrower permanently leaves the home — whether by selling, moving to a care facility, or passing away. Heirs typically have 6–12 months to sell the property or refinance the balance to keep it.
What happens if the loan balance exceeds my home's value?
HECM reverse mortgages are insured by the FHA, making them non-recourse loans. If the balance exceeds the home's sale price, the FHA covers the shortfall. You and your heirs will never owe more than the home is worth.
Are reverse mortgage proceeds taxable?
No. Proceeds from a reverse mortgage are considered loan advances, not income, so they are not subject to federal income tax. However, you should consult a tax advisor, as receiving proceeds may affect certain needs-based benefits.
Reverse Mortgage
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