Quick answerA reverse mortgage lets homeowners 62 and older borrow against home equity without monthly mortgage payments. The loan grows over time and can become due after death, sale, loss of principal-residence status, or a loan default. Co-borrower and eligible non-borrowing spouse protections can matter. You must keep paying property taxes, insurance, and upkeep—failing to do so can lead to foreclosure. Most are FHA-insured HECMs, which require independent counseling. The 2026 HECM limit on the home value used is $1,249,125.
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How a HECM works

  • You borrow against your home’s equity.
  • No monthly mortgage payments are required.
  • Interest and mortgage insurance are added to the balance, so the loan grows and your equity shrinks.
  • The loan can become due when the home is sold, the last borrower dies or stops using it as a principal residence, or loan obligations are not met. Protections for a remaining co-borrower or eligible non-borrowing spouse may prevent immediate repayment.

Who qualifies

  • Youngest borrower 62 or older
  • Own the home outright or have significant equity (the reverse mortgage must pay off any existing mortgage)
  • Live in the home as your principal residence
  • Complete HECM counseling from a HUD-approved counselor
  • Pass a financial assessment showing you can pay taxes, insurance, and upkeep (or accept a set-aside to cover them)
  • Eligible property: single-family home, 2–4 unit home you live in, FHA-approved condo, or manufactured home meeting FHA requirements

How much you can get

The amount depends on the age of the youngest borrower (or eligible non-borrowing spouse), interest rates, and the lesser of the home’s appraised value or the HECM limit ($1,249,125 in 2026). Older borrowers and lower rates generally mean more money.

Payout options: lump sum (fixed rate only), monthly payments (tenure or term), a line of credit that can grow over time, or a combination.

Costs

  • Upfront mortgage insurance premium: 2% of the home value (up to the limit)
  • Annual mortgage insurance: 0.5% of the loan balance
  • Origination fee: capped by FHA (maximum $6,000)
  • Closing costs: appraisal, title, recording, and others
  • Servicing fees in some cases
  • Interest

Costs can be financed into the loan, but that reduces what you receive.

Risks and cautions

  • Unpaid property taxes or insurance can trigger default and foreclosure.
  • Reduced inheritance as the balance grows.
  • Time away: more than six months away for non-medical reasons can trigger repayment when no co-borrower remains. A healthcare-facility absence has a different, 12-consecutive-month rule. Ask about co-borrower and eligible non-borrowing spouse protections before moving.
  • Pressure to buy other products: be wary of anyone urging you to use proceeds for annuities or investments.
  • Proprietary (jumbo) reverse mortgages aren’t FHA-insured and may have different protections.

Alternatives to consider

  • Property tax relief or deferral programs. See property tax help
  • Home repair grants. See home repair assistance
  • Downsizing or moving to senior housing. See senior housing
  • Home equity loans or lines of credit (require monthly payments)
  • Renting out a room or adding an accessory dwelling unit
  • Benefits screening for programs you may be missing (BenefitsCheckUp)

Before you sign

  1. Complete counseling with an agency you choose from HUD’s list—not one steered by a lender.
  2. Compare offers from several lenders.
  3. Include family members in the discussion if appropriate.
  4. Understand the three-day right to cancel after closing for most reverse mortgages.

Frequently asked questions

Can I lose my home with a reverse mortgage?

Yes, if you don’t pay property taxes, homeowners insurance, or HOA dues, don’t maintain the home, or no longer live there as your principal residence for more than 12 consecutive months. Budget for these costs before borrowing.

What happens to my spouse if they’re not on the loan?

For HECMs originated since August 2014, an eligible non-borrowing spouse who was married to the borrower at closing and named in the documents can generally remain in the home after the borrower dies, as long as loan conditions are met, though they can’t receive further loan funds.

Will my heirs owe money?

HECMs are non-recourse: neither you nor your heirs will owe more than the home’s value when the loan is repaid. Heirs can keep the home by paying off the loan balance or 95% of the appraised value, whichever is less, or sell it.

Does a reverse mortgage affect Social Security or Medicare?

No. Loan proceeds aren’t income for Social Security or Medicare. They can affect need-based benefits like SSI or Medicaid if you keep the money in a bank account past the month you receive it.

Sources and verification

Use these sources to check program rules. Funding, openings, and local procedures must be confirmed with the agency handling your application.

Update note (2026-10-01): Corrected move-out repayment triggers and added CFPB sources for non-medical absences, healthcare stays, and spouse protections.

  1. Moving out with a reverse mortgage and spouse protectionsConsumer Financial Protection Bureau
  2. Reverse mortgage borrower responsibilitiesConsumer Financial Protection Bureau
  3. Home Equity Conversion MortgagesU.S. Department of Housing and Urban Development
  4. Reverse mortgages: What you need to knowConsumer Financial Protection Bureau
  5. FHA announces 2026 loan limits (including HECM limit)U.S. Department of Housing and Urban Development
  6. Reverse mortgagesFederal Trade Commission

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Published by Housing Assistance Info

Independent guidance based on the sources listed above. Read our sourcing, automated-tool, and correction policies.