Frequently Asked Questions

A reverse mortgage (most commonly a HECM — Home Equity Conversion Mortgage) is a loan available to homeowners aged 62+ that allows you to convert a portion of your home's equity into cash — without selling your home or making monthly mortgage payments.

Unlike a traditional mortgage where you make payments to the lender, with a reverse mortgage the lender makes payments to you. The loan is repaid when you sell the home, move out permanently, or pass away.

To qualify for a HECM reverse mortgage, you must:

• Be 62 years of age or older
• Own your home outright or have a low mortgage balance that can be paid off with loan proceeds
• Live in the home as your primary residence
• Keep current on property taxes, homeowner's insurance, and basic maintenance
• Complete a HUD-approved counseling session (required by federal law)

Eligible property types include:

• Single-family homes
• FHA-approved condominiums
• Multi-family homes (1–4 units, if the borrower lives in one unit)
• Manufactured homes that meet FHA requirements
• HUD-approved planned unit developments (PUDs)

Cooperative housing (co-ops) and most mobile homes do not qualify.

The amount you can borrow depends on three main factors:

• Your age — the older you are, the more you can access
• Your home's appraised value — up to the FHA HECM lending limit ($1,209,750 in 2025)
• Current interest rates — lower rates allow greater borrowing

Typically, you can access between 40%–60% of your home's appraised value. Our free estimate will give you a personalized projection based on your specific details.

You have several options for receiving your reverse mortgage proceeds:

• Lump sum — receive all funds upfront (fixed rate only)
• Monthly payments — receive equal monthly payments for a set term or for life
• Line of credit — access funds as needed; the unused portion grows over time
• Combination — mix of lump sum, monthly payments, and/or line of credit

The reverse mortgage loan becomes due and payable when:

• The last surviving borrower sells the home
• The last surviving borrower moves out or no longer occupies the home as their primary residence for 12+ consecutive months
• The last surviving borrower passes away
• The borrower fails to pay property taxes, maintain homeowner's insurance, or keep the home in reasonable repair

At that point, the loan is typically repaid by selling the home. If the home sells for more than the loan balance, the remaining equity belongs to you or your heirs.

No. HECM reverse mortgages are non-recourse loans. This means you (or your heirs) will never owe more than the appraised value of the home at the time of repayment — even if the loan balance has grown to exceed the home's value.

This protection is backed by FHA mortgage insurance, which is one of the key advantages of a government-insured HECM over proprietary (private) reverse mortgage products.

Typical costs associated with a HECM reverse mortgage include:

• Origination fee — up to $6,000 depending on home value
• FHA mortgage insurance premium (MIP) — 2% upfront + 0.5% annually
• Closing costs — appraisal, title insurance, recording fees (typically $2,000–$5,000)
• HUD counseling fee — typically $125–$200
• Servicing fees — may be charged monthly

Many of these costs can be financed into the loan, so you may not need to pay them out of pocket. Your licensed advisor will provide a full cost breakdown in the required Loan Estimate disclosure.

Your heirs will not be personally responsible for the loan balance. After you pass away or permanently leave the home, heirs typically have several options:

• Sell the home — use the proceeds to repay the loan; any remaining equity belongs to them
• Keep the home — by refinancing the reverse mortgage into a traditional mortgage
• Walk away — since it is a non-recourse loan, the FHA covers any shortfall

Heirs generally have 6 months (up to 12 with extensions) to decide what to do with the property.

Reverse mortgage proceeds are generally not considered taxable income because they are loan proceeds, not income. However, your situation may differ. We strongly encourage you to consult a qualified tax advisor before proceeding.

Reverse mortgage proceeds can potentially affect eligibility for needs-based government programs such as Medicaid. Consult a financial advisor to understand any implications for your specific circumstances.

Yes — 100% free with no obligation. Submitting your information costs nothing and does not commit you to anything. We simply connect you with a licensed HECM specialist who will prepare a personalized estimate.

One or more of our licensed partner companies (HECM lenders, brokers, or counselors) may contact you by phone, email, or mail within 24–48 hours. They will discuss your situation and present options without any pressure to proceed.

You are free to compare their offer with other lenders. We encourage you to get multiple quotes before making any decision.

Federal law requires all HECM applicants to complete a one-on-one counseling session with an independent, HUD-approved counselor before a reverse mortgage application can be submitted. The counselor is entirely independent of any lender.

This session typically lasts 60–90 minutes and covers how reverse mortgages work, the costs involved, alternatives, and your rights. Sessions can be conducted by phone or in person. The fee is typically $125–$200.

We strongly support this requirement as an important safeguard for homeowners.