Who this is for
- Homeowners 62+ who want to supplement retirement income without selling
- Borrowers with substantial equity who want no monthly mortgage payment
- Homeowners who want to age in place rather than downsize
- Borrowers comparing HECM vs. HELOC vs. downsizing
Typical Reverse Mortgages (HECM) requirements
| Minimum age | 62 for the youngest borrower (HECM) |
|---|---|
| Occupancy | Primary residence only |
| Equity needed | Typically 50%+ equity, depending on age and rates |
| Counseling | HUD-approved reverse mortgage counseling required |
| Monthly payment | None required; taxes, insurance, HOA still owed |
| Loan types | HECM (FHA-insured); proprietary jumbo reverse for high values |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Confirm eligibility: 62+, primary residence, sufficient equity, HUD counseling completed.
- Choose a payout structure: lump sum, tenure payments, term payments, line of credit, or a combination.
- The lender orders an appraisal and verifies taxes, insurance, and property condition.
- At closing, existing mortgage (if any) is paid from proceeds; remaining funds go to you per your chosen structure.
- No monthly mortgage payment is required, but you must keep paying property taxes, homeowners insurance, and HOA dues, and maintain the home.
- The loan balance (principal + accrued interest + mortgage insurance) becomes due when the last borrower sells, moves out for 12+ months, or passes away.
Try the Mortgage Payment Calculator
Pros and cons
Advantages
- No monthly mortgage payment required
- FHA-insured HECM is non-recourse: you (or heirs) never owe more than the home is worth
- Flexible payout options including a growing line of credit
- Proceeds are generally tax-free (consult a tax advisor)
Trade-offs
- Upfront costs are high: origination, FHA mortgage insurance premium, closing costs
- Loan balance grows over time, reducing equity for heirs
- Must keep up with taxes, insurance, and maintenance or face foreclosure
- Reduces options if you later need to move or qualify for needs-based benefits
Documents you’ll need
- Government photo ID and Social Security number
- Proof of age (62+)
- Current mortgage statement (if any)
- Homeowners insurance declarations page
- Property tax bill
- HUD counseling certificate
- HOA information, if applicable
Reverse Mortgages (HECM) FAQ
Can I lose my home with a reverse mortgage?
You keep title to your home. But the loan can be called due, and the home foreclosed, if you stop paying property taxes or insurance, let the home fall into disrepair, or move out for more than 12 consecutive months.
Do my heirs owe more than the house is worth?
No. HECM loans are non-recourse: when the loan becomes due, the repayment is capped at the home's appraised value at that time. Heirs can sell, walk away, or buy the home for 95% of appraised value.
What is the difference between HECM and a proprietary reverse mortgage?
HECM is FHA-insured, capped at the FHA lending limit, and requires HUD counseling. Proprietary (jumbo) reverse mortgages are private lender products for higher-value homes with larger payouts but fewer federal protections.
Can I get a reverse mortgage on a condo?
Yes, if the condo project meets FHA requirements for HECM. Proprietary products have their own project rules.
How much money can I get from a reverse mortgage?
It depends on your age, home value, and current rates. Older borrowers with more equity get more: a 70-year-old with a paid-off $400,000 home might access roughly 40-55% of the value, before fees.
What does a reverse mortgage cost?
Expect an origination fee, FHA mortgage insurance premium (2% upfront on HECM plus 0.5% annually), appraisal, and closing costs. Total upfront costs often run $10,000-$20,000 on a typical loan.
Do I still own my home with a reverse mortgage?
Yes, you keep the title in your name. The lender places a lien, like any mortgage. You can sell anytime and keep the remaining equity.
Can I get a reverse mortgage if I still have a mortgage?
Yes, if you have enough equity. The reverse mortgage pays off your existing mortgage first, and you receive whatever is left over.
What happens if I move to assisted living?
If you move out for more than 12 consecutive months, the loan becomes due. A non-borrowing spouse may have protections, talk to a HUD counselor about your specific situation.
Official sources
How Reverse Mortgages (HECM) compares
| Reverse Mortgages (HECM) | HELOCs & Home Equity Loans | Cash-Out Refinance | Rate-and-Term Refinance | |
|---|---|---|---|---|
| Best for | Homeowners 62+ who want to supplement retirement income without selling | Owners with a low-rate first mortgage | Paying off high-interest debt | Rates dropped since you bought |
| Down payment | , | , | , | , |
| Credit | , | , | , | , |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
HELOCs & Home Equity Loans
A HELOC (home equity line of credit) and a home equity loan both let you borrow against your home while keeping your current first mortgage.
Cash-Out Refinance
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash, commonly up to 80% of your home’s value on a primary residence.
Rate-and-Term Refinance
A rate-and-term refinance replaces your mortgage with a new one to change the rate, the term or the loan type, without taking cash out.