Reverse mortgage questions, answered plainly.

You must be at least 62 years old (55 for some jumbo programs), own your home, have equity sufficient to cover any outstanding mortgage balance, and occupy the home as your principal residence. All applicants undergo a financial assessment to determine capacity and willingness to meet ongoing obligations (taxes, insurance, maintenance).

The amount depends on your age, home value, existing liens, and current interest rates. HUD limits borrowers to using 60% of available funds (after closing costs) in year one, with the remainder accessible in year two. The maximum first-year disbursement is either 60% of the Principal Limit, or mandatory obligations plus 10% of Principal Limit — whichever is greater.

You can receive funds as a lump sum (up to HUD's first-year maximum), set up a growing line of credit, request monthly tenure or term payments, or combine all three. Fixed-rate mortgages only allow lump-sum disbursement; adjustable-rate loans offer the line-of-credit and payment options.

Costs include origination fees, FHA mortgage insurance premiums (MIP), appraisal fee, flood certification, document preparation, title, settlement, escrow, and a possible monthly servicing fee. All costs are clearly shown on the Good Faith Estimate (GFE) before you sign.

FHA requires an upfront MIP calculated using your home's appraised value (capped at the 2026 limit of $1,249,125). Ongoing premiums are calculated monthly on the outstanding loan balance. Both are built into the loan — you don't write a separate check.

Yes. Counseling is required with an independent third-party HUD-approved counselor to protect borrowers from receiving incorrect or biased information about reverse mortgages. You and your counselor speak privately — separate from me — by design.

Reverse mortgage proceeds are typically not subject to individual income tax, because they are loan proceeds rather than income. Consult your tax advisor for your specific situation.

You typically don't pay fees during the loan itself. Upfront costs cover appraisal and counseling. A monthly servicing fee may apply on some loans — when it does, it's financed into the loan balance rather than paid out of pocket.