Retirement Rewarded Here

To qualify for a HECM reverse mortgage, you must be at least 62 years old, own your home outright or have significant equity, occupy the home as your primary residence, and complete a HUD-approved reverse mortgage counseling session. There are no income or credit score minimums, though a financial assessment is required.

The loan amount depends on your age (older borrowers qualify for more), the home's appraised value, current interest rates, and the HECM lending limit, which is $1,149,825 in 2026. Generally, the older you are and the more equity you have, the more you can access. Funds can be taken as a lump sum, monthly payments, a line of credit, or a combination.

Yes. You retain title to your home and can continue living there as long as you meet the loan obligations, primarily maintaining the home, paying property taxes, and keeping homeowner's insurance current. The lender does not own your home, and you can sell it at any time to repay the loan.

When the last borrower passes away or permanently leaves the home, the reverse mortgage becomes due. Heirs have several options: they can repay the loan and keep the home, sell the home and use the proceeds to repay the loan, or walk away if the loan balance exceeds the home's value (FHA insurance covers the shortfall). Heirs typically have up to 12 months to settle the loan.

Reverse mortgage costs include an upfront MIP of 2% of the home's value, an annual MIP of 0.5%, an origination fee (up to $6,000), closing costs, and servicing fees. These can be financed through the loan. While the upfront costs are higher than traditional loans, there are no monthly payments required.

Reverse mortgage proceeds are not considered income and do not affect Social Security or Medicare benefits. However, if reverse mortgage funds are retained in a bank account past the end of the month, they may count as assets and affect Medicaid or SSI eligibility. Consult a financial advisor or elder care attorney if these benefits are important to you.

A reverse mortgage can be an excellent tool for seniors who are equity-rich but cash-poor, want to eliminate mortgage payments, or need supplemental retirement income. It's not ideal if you plan to move soon, want to leave the home to heirs with no debt, or have lower equity. HUD-approved counseling is required and provides personalized guidance.