01
Determine Your Eligibility
HECM eligibility considers your age, home value, existing mortgage debt, financial assessment, property condition, and principal residence status. HUD-approved reverse mortgage counseling is required.
REVERSE MORTGAGE FINANCING FOR HOMEOWNERS 62+
Your Home. Your Equity. Your Retirement.
You’ve spent years building equity in your home. A reverse mortgage may allow eligible homeowners age 62 and older to convert a portion of that equity into accessible funds while continuing to live in their home. Explore FHA-insured Home Equity Conversion Mortgage (HECM) options and learn how reverse mortgage financing may support your retirement goals.
Age 62+
FHA-insured HECM reverse
mortgages are designed
for eligible homeowners
age 62 and older.
No Required Monthly P&I
HECM borrowers generally
do not have required
monthly mortgage principal
and interest payments
while meeting loan terms.
Reverse mortgages are loans secured by your home, not free money. Interest and applicable fees accrue, increasing the loan balance over time. Borrowers must continue paying property taxes, homeowners insurance, applicable property charges, and maintaining the home. The home must generally remain the borrower’s principal residence. Failure to meet loan obligations may result in foreclosure. HECM counseling and other eligibility requirements apply.
More Options for the Retirement You’ve Earned.
Explore how eligible home equity financing may fit your long-term retirement plans.
Find Reverse Mortgages Programs in Your City
Select your state and search for your city to explore local mortgage information for this specific loan program.
Select a state to begin.
UNDERSTANDING REVERSE MORTGAGE FINANCING
How Does an FHA-Insured Reverse Mortgage Work?
A Home Equity Conversion Mortgage (HECM) allows eligible homeowners age 62 and older to borrow against a portion of their home’s equity while continuing to own and live in their home. Unlike a traditional mortgage, monthly principal-and-interest payments are generally not required while the borrower meets the loan obligations.
02
Access a Portion of Your Equity
The amount available depends on factors including the youngest applicable borrower’s age, eligible property value, interest rate assumptions, and program limits. Existing mortgage balances generally must be paid off at closing.
03
Continue Living in Your Home
You retain ownership of your home and generally do not have required monthly mortgage principal-and-interest payments. You must continue paying property taxes, homeowners insurance, applicable property charges, and maintaining the home.
04
Repay When the Loan Becomes Due
A reverse mortgage generally becomes due when the last borrower dies, permanently moves out, sells the home, or fails to meet loan obligations. Eligible non-borrowing spouses may have certain protections under applicable HECM rules.
Do You Still Own Your Home With a Reverse Mortgage?
Yes. With a HECM reverse mortgage, you retain title to your home. The lender holds a mortgage lien, just as with other home-secured loans. Interest and applicable fees are added to the outstanding loan balance, which generally increases over time. Remaining home equity may decrease depending on property value changes and the amount borrowed.
HECMs are FHA-insured reverse mortgages subject to HUD requirements. Borrowers must meet ongoing loan obligations. Failure to do so may result in foreclosure. Loan proceeds, costs, and repayment conditions vary by borrower and property.
How Can You Receive Funds From a Reverse Mortgage?
Eligible HECM borrowers may have different ways to receive loan proceeds. Available options depend on whether the mortgage has a fixed or adjustable interest rate and on applicable program restrictions.
01
Lump-Sum Payment
Receive available proceeds as a single disbursement, subject to first-year limits and mandatory obligations. Fixed-rate HECMs generally provide a single disbursement rather than ongoing access to funds.
02
Monthly Payments
Eligible adjustable-rate HECMs may offer scheduled monthly disbursements for a selected period or for as long as applicable loan conditions are satisfied.
03
Reverse Mortgage Line of Credit
An adjustable-rate HECM may provide a line of credit that allows access to available funds as needed, subject to loan terms and disbursement restrictions.
04
Combination of Payment Options
Certain adjustable-rate HECMs allow borrowers to combine monthly disbursements with a line of credit, providing flexibility based on available proceeds and program requirements.
How Much Home Equity Might Be Available to You?
Explore how age, home value, existing mortgage balances, and loan assumptions can affect potential reverse mortgage proceeds.
Available proceeds are subject to HECM principal limits, interest rates, existing liens, mortgage insurance, closing costs, financial assessment, first-year disbursement limits, and applicable loan requirements. Reverse mortgage proceeds are loan advances, not earned income. Interest and applicable fees accrue on outstanding balances.
FHA-INSURED REVERSE MORTGAGE ELIGIBILITY
What Are the Requirements to Qualify for a Reverse Mortgage?
FHA-insured Home Equity Conversion Mortgages are designed for eligible homeowners age 62 and older. Qualification involves more than age and home value. Borrowers must also meet property, counseling, financial assessment, and ongoing loan requirements.
01
Age 62 or Older
HECM borrowers must generally be at least 62 years old. When there are multiple borrowers, each borrower must meet the applicable age requirement. Special rules may apply to eligible non-borrowing spouses.
02
Sufficient Home Equity
Available equity is important because existing mortgage balances generally must be paid off with HECM proceeds or other acceptable funds. The amount available depends on age, property value, interest rates, and program requirements.
03
Primary Residence Requirement
The property must generally be the borrower’s principal residence. Borrowers must meet applicable occupancy requirements and certify continued occupancy as required by the loan.
04
HUD-Approved HECM Counseling
Before obtaining an FHA-insured HECM, borrowers must complete counseling with an approved HECM counselor. Counseling helps explain loan costs, alternatives, repayment obligations, and borrower responsibilities.
05
Financial Assessment
Lenders evaluate financial capacity and credit history to assess whether borrowers can meet ongoing obligations, including property taxes, homeowners insurance, and applicable property charges. A set-aside may be required.
06
Eligible Property & Condition
Eligible properties may include qualifying single-family homes, certain two-to-four-unit properties, approved condominiums, and other eligible housing types. FHA appraisal and property standards apply.
Do You Need to Own Your Home Free and Clear?
No. Some homeowners qualify for a reverse mortgage while still having an existing mortgage balance. However, the existing mortgage generally must be paid off at closing, often using reverse mortgage proceeds. If available proceeds are insufficient, additional acceptable funds may be needed.
FHA-insured HECM eligibility is subject to HUD program requirements, property valuation, financial assessment, counseling, available principal limits, existing liens, and other underwriting conditions. Approval and available proceeds are not guaranteed.
What Information Do You Need for a Reverse Mortgage?
Preparing basic property and financial information can make your initial reverse mortgage discussion more productive. Documentation requirements vary by borrower and lender.
- Age and identification for all proposed borrowers.
- Property address and estimated current home value.
- Current mortgage statements and lien balances.
- Property tax and homeowners insurance information.
- HOA or condominium fees, if applicable.
- Income and asset documentation for financial assessment.
- Information about property occupancy and ownership.
- Existing home repair or maintenance concerns.
- HUD-approved HECM counseling certificate when required.
Explore Your Home Equity Before Making a Decision.
Reverse mortgage proceeds depend on more than your home’s market value. Your age, existing mortgage balance, applicable interest rate assumptions, program limits, and closing costs all affect available funds.
Understand Your Options First
A reverse mortgage can affect your remaining home equity, future financial flexibility, and the amount of equity available to your heirs.
Our upcoming reverse mortgage calculator will provide educational estimates to help you explore potential financing scenarios.
Explore My Reverse Mortgage Options → Request a Reverse Mortgage Consultation →This information is educational and does not constitute an offer or approval of credit. FHA-insured HECMs require counseling and lender underwriting. Homeowners remain responsible for taxes, insurance, property maintenance, and applicable loan obligations.
INTERACTIVE REVERSE MORTGAGE EQUITY EXPLORER
How Much Home Equity Could Support Your Retirement?
Explore your estimated home equity and see how existing mortgage debt affects your financial position. Actual FHA-insured HECM proceeds depend on official principal-limit calculations, interest rates, age, mortgage balances, and applicable costs.
Enter Your Home Equity Details
Adjust the values below to explore your home’s estimated equity.
62 Years95 Years
$50K$2M
Understand Your Equity Position
Home equity is the difference between your estimated property value and outstanding mortgage debt.
Important HECM Calculation Note
Your age is relevant to actual reverse mortgage eligibility and principal limits. This educational tool does not assign an estimated HECM principal limit because doing so requires current HUD factors, applicable interest rates, and additional loan information.
Your Estimated Home Equity
Review the difference between estimated property value and existing secured debt.
Youngest Borrower’s Age
68
Estimated Property Value
$400,000
Existing Mortgage Debt
$100,000
Estimated Gross Home Equity
Calculating…
This is not your available
reverse mortgage loan amount.
Existing Loan-to-Value Ratio
—
Estimated Equity Percentage
—
How Much Could You Actually Receive?
A HECM lender must calculate the applicable principal limit, subtract required mortgage payoffs, loan costs, and applicable set-asides, and apply disbursement restrictions. Your available funds may be substantially less than your gross home equity.
Adjust the values to explore your home equity.
Request My Reverse Mortgage Review →Educational home equity estimates only. This calculator does not determine actual HECM proceeds, eligibility, principal limits, loan approval, or available cash. Existing mortgage balances should include all liens secured by the property. HECMs accrue interest and applicable fees. Borrowers remain responsible for property taxes, insurance, maintenance, and applicable loan terms. Failure to meet loan obligations may result in foreclosure.
POTENTIAL BENEFITS OF REVERSE MORTGAGE FINANCING
What Are the Advantages of a Reverse Mortgage?
An FHA-insured Home Equity Conversion Mortgage may provide eligible homeowners age 62 and older with additional financial options during retirement. The benefits depend on individual circumstances, loan terms, and ongoing responsibilities.
01
No Required Monthly Mortgage Principal & Interest
HECM borrowers generally do not have required monthly mortgage principal and interest payments while meeting applicable loan obligations. Interest and fees continue to accrue.
02
Continue Living in Your Home
Eligible homeowners may remain in their home while accessing available equity, provided the property remains their principal residence and loan requirements are met.
03
Flexible Disbursement Options
Depending on the HECM structure, borrowers may have options involving a lump sum, monthly disbursements, a line of credit, or combinations of eligible payment methods.
04
Access a Portion of Home Equity
A reverse mortgage may allow qualifying homeowners to use part of their accumulated equity for retirement-related financial needs.
05
FHA Mortgage Insurance Protections
FHA-insured HECMs include certain federal insurance protections and non-recourse provisions, subject to program requirements and applicable loan terms.
06
Potential Retirement Cash Flow Flexibility
Eligible HECM proceeds may help borrowers manage certain expenses or supplement other retirement resources. Borrowing reduces remaining home equity and increases debt.
Does a Reverse Mortgage Mean You Never Have to Make a Payment?
No. While monthly mortgage principal-and-interest payments are generally not required on an FHA-insured HECM, homeowners must continue paying property taxes, homeowners insurance, applicable association fees, and other required property charges. Borrowers must also maintain the home, satisfy occupancy requirements, and comply with loan terms.
IMPORTANT REVERSE MORTGAGE CONSIDERATIONS
What Are the Risks of a Reverse Mortgage?
A reverse mortgage can provide financial flexibility, but it is still a loan secured by your home. Understanding the costs, repayment conditions, and homeowner responsibilities is essential before making a financing decision.
01
Increasing Loan Balance
Interest and applicable fees accrue over time and are generally added to the balance. Your total mortgage debt may increase even without new cash advances.
02
Reduced Remaining Home Equity
As the loan balance increases, remaining equity may decline. Home value changes also affect the equity available when the property is eventually sold or refinanced.
03
Property Taxes & Insurance
Borrowers must continue paying property taxes, homeowners insurance, and applicable property charges. Failure to meet these obligations can cause the loan to become due.
04
Occupancy & Maintenance Requirements
The property must generally remain the borrower’s principal residence. Homeowners must also maintain the property according to applicable loan requirements.
05
Loan Costs & Mortgage Insurance
FHA-insured HECMs may include origination charges, closing costs, mortgage insurance premiums, servicing charges, and interest. These expenses affect available proceeds and the loan balance.
06
Inheritance & Estate Considerations
When a reverse mortgage becomes due, heirs may need to repay the balance, refinance, sell the home, or pursue other available options under applicable HECM rules.
Can You Lose Your Home With a Reverse Mortgage?
Yes. Although monthly mortgage principal-and-interest payments are generally not required on a HECM, failing to meet property tax, insurance, maintenance, occupancy, or other loan obligations can result in the mortgage becoming due and potentially foreclosure. Understanding these responsibilities is essential before borrowing.
FHA-insured Home Equity Conversion Mortgages are subject to HUD counseling, financial assessment, property eligibility, loan costs, principal limits, and ongoing borrower obligations. HECM loans are generally non-recourse, subject to applicable FHA rules. This information is educational and does not constitute a commitment to lend.
REVERSE MORTGAGES & HOMEOWNERSHIP
What Happens to Your Home With a Reverse Mortgage?
An FHA-insured Home Equity Conversion Mortgage does not automatically transfer ownership of your home to the lender. You retain title, but the property secures the loan. Understanding when repayment becomes due can help you and your family plan ahead.
01
While You Continue Living in Your Home
You generally retain ownership and may remain in the home while meeting occupancy, property tax, insurance, maintenance, and other loan requirements. Monthly mortgage principal and interest payments are generally not required.
02
If You Decide to Sell Your Home
You may sell the property, subject to applicable mortgage payoff requirements. The outstanding reverse mortgage balance is generally repaid from the sale proceeds. Remaining proceeds, after transaction costs and other obligations, belong to the homeowner.
03
If You Permanently Move Out
A reverse mortgage may become due if the property is no longer your principal residence. Extended absences, including certain healthcare-related absences, are subject to specific HECM rules and servicing procedures.
04
When the Last Borrower Passes Away
The loan generally becomes due following the death of the last surviving borrower, subject to protections that may apply to an eligible non-borrowing spouse. The estate or heirs may have options to repay the loan or sell the property.
Does the Bank Automatically Take Your Home When You Die?
No. A HECM does not automatically transfer ownership to the lender upon a borrower’s death. When the loan becomes due, the estate or eligible heirs may have options to repay the balance, refinance, or sell the property, subject to applicable HECM servicing rules and deadlines. If the debt is not resolved, foreclosure may ultimately occur.
REVERSE MORTGAGE ESTATE PLANNING
What Happens to Your Heirs When You Have a Reverse Mortgage?
A reverse mortgage can affect the amount of home equity available to your heirs. Understanding repayment options, non-recourse protections, and surviving spouse rules can help families plan ahead.
01
Heirs May Keep the Home
Eligible heirs may choose to keep the property by satisfying the applicable HECM repayment requirements. This may involve personal funds, refinancing, or another acceptable payoff arrangement.
02
Heirs May Sell the Property
Heirs may elect to sell the home and use the sale proceeds to satisfy the reverse mortgage. Remaining equity, after repayment and applicable costs, may pass to the estate or beneficiaries.
03
HECM Non-Recourse Protections
FHA-insured HECMs generally provide non-recourse protection. When repayment is required, the debt is generally limited to the home’s value under applicable HECM rules. Heirs are not automatically personally responsible for a deficiency.
04
Eligible Non-Borrowing Spouses
Certain surviving non-borrowing spouses may qualify for protections that allow continued occupancy after the borrower’s death. Eligibility depends on applicable HECM requirements, loan circumstances, and ongoing obligations.
Can Heirs Keep a Home Worth Less Than the Reverse Mortgage Balance?
Under applicable FHA-insured HECM rules, eligible heirs who wish to retain the property may generally satisfy the debt by paying the lesser of the outstanding loan balance or 95% of the home’s current appraised value. Specific servicing, appraisal, and repayment requirements apply.
HECM repayment, inheritance, non-recourse, and surviving spouse protections depend on applicable FHA rules and loan circumstances. Estates and heirs must comply with servicing requirements and deadlines. Failure to resolve a due-and-payable loan may result in foreclosure. Families should consider consulting qualified estate planning or legal professionals when appropriate.
COMPARE HOME EQUITY FINANCING OPTIONS
Reverse Mortgage vs. HELOC vs. Cash-Out Refinance
Homeowners may have several ways to access equity. The right financing option depends on age, income, home value, existing debt, repayment goals, and long-term financial plans.
FHA-INSURED RETIREMENT FINANCING
HECM Reverse Mortgage
An FHA-insured reverse mortgage allows eligible homeowners age 62 and older to borrow against a portion of their home equity.
- Generally requires borrowers to be age 62 or older.
- No required monthly mortgage principal-and-interest payments while loan obligations are met.
- Interest and applicable fees accrue to the loan balance.
- Existing mortgage debt generally must be paid off at closing.
- HUD-approved HECM counseling is required.
- Property taxes, insurance, and maintenance remain the homeowner’s responsibility.
REVOLVING HOME EQUITY CREDIT
Home Equity Line of Credit
A HELOC provides a revolving credit line secured by your home, subject to lender qualification requirements.
- No universal age-62 requirement.
- Monthly payments are generally required.
- Many HELOCs have variable interest rates.
- May allow you to keep your existing first mortgage.
- Borrowing may be available during an approved draw period.
- Payment amounts may increase during repayment.
REPLACE YOUR EXISTING MORTGAGE
Cash-Out Refinance
A cash-out refinance replaces an existing mortgage with a new mortgage that may provide additional funds at closing.
- No universal age-62 requirement.
- Regular mortgage payments are generally required.
- Eligible fixed-rate and adjustable-rate options may be available.
- Replaces the existing first mortgage.
- Income, credit, equity, and debt-to-income requirements apply.
- Closing costs and total interest should be evaluated.
Which Home Equity Financing Option Fits Your Retirement Goals?
A reverse mortgage may appeal to eligible older homeowners who want to access equity without required monthly mortgage principal-and-interest payments. A HELOC may offer revolving access to equity while preserving an existing first mortgage. Cash-out refinancing may be appropriate when replacing the existing mortgage also supports your financial objectives. Compare total borrowing costs, repayment obligations, interest accumulation, and long-term home equity before making a decision.
RETIREMENT HOME EQUITY FINANCING EXAMPLE
Comparing Home Equity Options at Age 68
Consider a hypothetical 68-year-old homeowner who wants to explore accessing home equity while planning for retirement. Each financing option has different qualification, payment, and repayment requirements.
Homeowner Age
68
Estimated Home Value
$400,000
Existing Mortgage Balance
$100,000
Option 1: FHA-Insured Reverse Mortgage
The homeowner may explore a HECM to determine whether available proceeds could satisfy the existing $100,000 mortgage balance and provide additional funds after costs and applicable set-asides. Monthly mortgage principal and interest payments are generally not required, but interest accrues and property obligations remain.
Option 2: Home Equity Line of Credit
The homeowner may explore a second-lien HELOC while keeping the existing first mortgage. The HELOC creates a separate secured obligation with required payments and potentially variable interest rates.
Option 3: Cash-Out Refinance
The homeowner may explore refinancing the existing mortgage into a new loan with additional funds at closing. The new mortgage replaces the existing first loan and generally requires scheduled principal and interest payments.
Why the Lowest Monthly Payment Isn’t Always the Best Choice
A reverse mortgage may reduce required monthly mortgage principal-and-interest payments, but interest and applicable fees generally increase the outstanding loan balance. A HELOC may preserve an existing first mortgage, but variable rates and repayment obligations can increase monthly costs. Cash-out refinancing may provide a predictable payment structure with a fixed-rate option, but it replaces the existing mortgage. The best financing decision depends on total borrowing costs, available equity, repayment obligations, financial goals, and long-term plans.
Explore Your Retirement Home Equity Options.
Review your estimated home equity and discuss reverse mortgage, HELOC, and refinancing alternatives with iLoan.
This example is hypothetical and does not represent current interest rates, actual loan proceeds, mortgage approval, or an offer of credit. Reverse mortgage proceeds depend on applicable HUD principal limits, borrower age, expected interest rates, property valuation, existing mortgage debt, closing costs, mortgage insurance, financial assessment, and required set-asides. HECM borrowers must continue paying property taxes, homeowners insurance, applicable property charges, and maintaining the home. HELOCs and cash-out refinancing have separate qualification and repayment requirements. All financing options are secured by the home. Failure to meet loan obligations may result in foreclosure.
REVERSE MORTGAGE QUESTIONS ANSWERED
Reverse Mortgage Frequently Asked Questions
Find answers to common questions about FHA-insured reverse mortgages, homeownership, retirement income, repayment, and borrower responsibilities.
Do I still own my home with a reverse mortgage?
Yes. With an FHA-insured Home Equity Conversion Mortgage (HECM), you retain title to your home. The lender holds a mortgage lien, and you must continue meeting occupancy, property tax, insurance, maintenance, and other loan obligations.
Can I lose my home with a reverse mortgage?
Yes. Although monthly mortgage principal-and-interest payments are generally not required, failing to meet property tax, insurance, occupancy, maintenance, or other loan obligations may cause the loan to become due and potentially result in foreclosure.
Does a reverse mortgage affect Social Security or Medicare?
HECM loan advances generally do not affect Social Security retirement benefits or Medicare eligibility because loan proceeds are borrowed funds, not earned income.
However, means-tested programs such as Medicaid or Supplemental Security Income (SSI) may be affected depending on how funds are received, retained, and counted under applicable benefit rules. Consult a qualified benefits adviser.
Are reverse mortgage proceeds taxable income?
Reverse mortgage advances are generally loan proceeds rather than taxable income. However, tax treatment can depend on individual circumstances and applicable tax law. Consult a qualified tax professional for personalized guidance.
Do I need to pay off my existing mortgage to get a reverse mortgage?
Existing mortgage balances generally must be satisfied at HECM closing. Available reverse mortgage proceeds may be used to pay off the existing mortgage. If proceeds are insufficient, additional acceptable funds may be required.
What happens to my reverse mortgage when I pass away?
A HECM generally becomes due following the death of the last surviving borrower, subject to eligible non-borrowing spouse protections. The estate or heirs may have options to repay the balance, refinance, or sell the property under applicable HECM rules.
Can my children inherit my home if I have a reverse mortgage?
Yes. A reverse mortgage does not automatically prevent heirs from inheriting the home. However, the mortgage must be resolved when it becomes due. Eligible heirs may choose to repay the balance, refinance, or sell the property, subject to applicable servicing requirements.
What happens if my reverse mortgage balance exceeds my home’s value?
FHA-insured HECMs generally include non-recourse protections. When repayment is required, the amount recoverable is limited under applicable FHA rules. Eligible heirs who wish to retain the home may generally satisfy the debt for the lesser of the loan balance or 95% of the current appraised value, subject to program requirements.
Is reverse mortgage counseling required?
Yes. FHA-insured HECM borrowers must complete counseling with a HUD-approved HECM counselor. Counseling explains loan costs, borrower responsibilities, repayment obligations, and alternative financing options.
You can learn more through the U.S. Department of Housing and Urban Development .
Can I pay off a reverse mortgage early?
Yes. HECM borrowers may generally repay the reverse mortgage voluntarily, including through refinancing or selling the home. You may also make voluntary payments toward principal and interest, subject to your loan agreement.
Still Have Questions About Reverse Mortgages?
Connect with iLoan to explore FHA-insured reverse mortgage options, home equity considerations, borrower responsibilities, and retirement financing alternatives.
PERSONALIZED REVERSE MORTGAGE GUIDANCE
Explore Your Reverse Mortgage Options With Confidence.
Whether you’re exploring ways to access home equity, reviewing retirement financing alternatives, or helping a family member understand reverse mortgages, iLoan can help you explore available options.
Your Home. Your Equity. Your Financial Future.
A reverse mortgage is an important financial decision. Understanding potential proceeds, loan costs, repayment obligations, and long-term home equity considerations can help you make an informed choice.
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Explore FHA-Insured HECM Options
Learn about eligibility requirements, counseling, potential proceeds, and available payment structures.
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Understand Your Home Equity
Review your estimated home value, existing mortgage debt, and factors that affect potential reverse mortgage financing.
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Compare Retirement Financing Alternatives
Explore reverse mortgages, HELOCs, and refinancing options based on your circumstances and financial goals.
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Request Your Reverse Mortgage Consultation
Complete the form below to connect with an iLoan mortgage professional about reverse mortgage eligibility, home equity, and retirement financing alternatives.
FHA-insured Home Equity Conversion Mortgages are subject to borrower age, property eligibility, HUD-approved counseling, financial assessment, principal limits, mortgage insurance, closing costs, and applicable underwriting requirements. HECM borrowers must continue paying property taxes, homeowners insurance, applicable property charges, and maintaining the home. Interest and fees accrue to the outstanding loan balance. Submitting an inquiry does not guarantee financing approval or constitute a commitment to lend.
