Reverse Mortgage 101
What is a reverse mortgage, and how can it help you?
A reverse mortgage is a loan that converts part of your home equity into cash, line of credit, or monthly payments — without requiring a monthly mortgage payment. Two main flavors: FHA-insured HECM and jumbo/proprietary reverse mortgages.
Two types of reverse mortgage loans
HECM (Home Equity Conversion Mortgage)
FHA-insured. Age 62 or older. Property values up to $1,249,125 considered in the 2026 lending limit. Multiple disbursement options: lump sum, growing line of credit, monthly tenure or term payments, or a combination.
Learn about HECMJumbo Reverse Mortgages
Private programs for higher-value homes (typically $950K+). Loan amounts up to $4M, property values to $10M. Age 55+. No FHA insurance premiums, closing costs as low as $125.
Explore jumboQualifications
Do you qualify?
Basic eligibility is consistent across HECM and most jumbo programs:
- At least one borrower must be 62 years old (55 on some jumbo programs).
- Home is your primary residence — you live there at least 6 months per year.
- Sufficient home equity — generally 50% or more recommended for a workable loan.
- You can sustain ongoing obligations: property taxes, homeowner's insurance, and basic maintenance.
- You complete an independent HUD-approved counseling session before signing.
Key features
What makes a reverse mortgage different
- No monthly mortgage payments are required (though you may choose to make them).
- You retain title and ownership of your home for as long as you meet the loan obligations.
- Multiple ways to access funds — lump sum, line of credit (which grows over time when unused), monthly payments, or a combination.
- Loan proceeds are typically not subject to income tax.
- Non-recourse loan — you can never owe more than the home is worth at the time of sale.
- Heirs may retain the home by paying 95% of the appraised value, even if the loan balance exceeds that.
Eligible properties
Reverse mortgages are available on most owner-occupied primary residences: single-family homes, townhouses, 2–4 unit properties (provided you live in one unit), FHA-approved condominiums, and certain manufactured homes meeting FHA standards. Investment properties, second homes, and properties held in certain trusts have different rules — call me to check yours.
Let's see your numbers
Three inputs — age, home value, current mortgage balance — and I can ballpark within 10 minutes what you would qualify for under both HECM and jumbo programs.