You stay in your home
Your name stays on the title. You can live there as long as it remains your primary residence and you keep taxes, insurance, and upkeep current.
For U.S. homeowners age 62 and older
Turn Home Equity Into Cash — Without Monthly Mortgage Payments
A reverse mortgage lets you use the equity you have already built while you keep the title and stay in your home. Get the plain-English guide, then talk to a licensed specialist. No cost, no obligation.
What is a reverse mortgage?
A reverse mortgage is a loan that lets a homeowner aged 62 or older convert part of their home equity into cash without making monthly mortgage payments. Nearly all are Home Equity Conversion Mortgages (HECMs) insured by the Federal Housing Administration. You keep the title. The balance is repaid when the last borrower sells the home, moves out permanently, or passes away.
Program rules set by the U.S. Department of Housing and Urban Development.
Source: HUD HECM program
and CFPB reverse mortgage guide.
Last reviewed: August 26, 2026.
FHA-Insured HECM Loans
No Monthly Mortgage Payment
You Keep the Title
HUD-Approved Counseling Required
Licensed Lender Network
Reverse mortgage requirements at a glance (2026)
To qualify for an FHA-insured HECM you must be at least 62, own your home outright or have substantial equity, live there as your primary residence, complete HUD-approved counseling, and pass a financial assessment showing you can keep taxes and insurance current.
| Requirement or limit | 2026 detail |
|---|---|
| Minimum borrower age | 62 years old (based on the youngest borrower) |
| FHA maximum claim amount | $1,249,125 — the highest home value FHA will use in the calculation, up from $1,209,750 in 2025 |
| What determines your payout | Age of the youngest borrower, current expected interest rate, and the lesser of appraised value or the FHA maximum claim amount |
| Credit score minimum | None. FHA requires a financial assessment reviewing credit history, property charge payment history, and residual income |
| Monthly mortgage payment | Not required. Property taxes, homeowners insurance, HOA dues, and maintenance remain your responsibility |
| Counseling | Required. Every borrower must complete a session with a HUD-approved counseling agency before applying |
| Eligible property types | Single-family homes, 2–4 unit properties with the borrower occupying one unit, FHA-approved condominiums, and manufactured homes meeting FHA requirements |
| Payout options | Lump sum, monthly tenure or term payments, line of credit, or a combination |
| Repayment trigger | Last borrower sells, moves out for more than 12 consecutive months, or passes away |
| Heir protection | Non-recourse. Heirs never owe more than the home is worth and may repay the lesser of the balance or 95% of appraised value to keep the home |
Why homeowners consider a reverse mortgage
The most common reasons are eliminating a monthly mortgage payment, covering medical or care costs, building an emergency line of credit, and supplementing retirement income without selling the home.
No monthly mortgage payment
An existing mortgage is paid off from the proceeds, which frees up cash flow. The reverse mortgage itself is repaid when you sell, move out permanently, or pass away.
FHA insurance protections
HECMs are insured by the Federal Housing Administration, which brings non-recourse protection, required counseling, and set caps on origination fees.
Proceeds are not taxed as income
Funds are loan advances, not income, so they are generally not taxable. Need-based benefits like Medicaid and SSI can still be affected. Ask a tax advisor about your situation.
No minimum credit score
There is no FICO cutoff, but FHA does require a financial assessment. If it flags a risk, part of your proceeds may be set aside to pay taxes and insurance for you.
Non-recourse for your heirs
Your heirs never inherit a balance larger than the home's value. They can repay and keep it, sell it and keep leftover equity, or hand it back and walk away owing nothing.
Several ways to take the money
Choose a lump sum, monthly payments, a growing line of credit, or a mix. Many financial planners favor the line of credit because unused funds grow over time.
Independent counseling built in
Before you can apply, you sit down with a HUD-approved counselor who does not work for the lender. It is a required checkpoint designed to protect you.
How the process works, step by step
Request information, speak with a licensed specialist within 24 to 48 hours, complete required HUD-approved counseling, then decide. Most HECM applications close in about 30 to 45 days once submitted.
Request your free guide
Call 678-866-1955 or fill out the form below. We will ask a few basic questions. There is no cost and no obligation.
Talk with a licensed specialist
Within 24 to 48 hours, a licensed reverse mortgage specialist reviews your age, home value, and current mortgage balance and walks through the numbers with you.
Complete HUD counseling
Every HECM borrower meets with a HUD-approved counseling agency first. The counselor is independent of the lender and works for you.
Decide what is right for you
Move forward only if the numbers make sense for your situation. Saying no costs you nothing and does not affect your credit.
Is a reverse mortgage right for you?
A reverse mortgage tends to fit homeowners who plan to stay in the home long term and need cash flow. It tends to be a poor fit for people planning to move soon or unable to keep up with property taxes, insurance, and maintenance.
Often a good fit when you
- Plan to stay in your home for the long term
- Have significant equity but limited monthly income
- Want to eliminate an existing mortgage payment
- Need funds for medical, dental, or in-home care costs
- Want a standby line of credit for emergencies
- Can comfortably cover taxes, insurance, and upkeep
Usually not a good fit when you
- Expect to sell or move within the next few years, since upfront costs may not be recovered
- Are struggling to pay property taxes or homeowners insurance today
- Want to leave the home to heirs free and clear of any loan balance
- Have a co-resident under 62 who is not eligible as a borrower
- Could meet the same need with a smaller, less costly option such as a home equity loan or downsizing
Reverse mortgage questions, answered
Select a question to open the answer. See all FAQs →
Do I still own my home with a reverse mortgage?
Yes. You keep the title and stay on the deed. You can live in the home as long as it remains your primary residence and you keep property taxes, homeowners insurance, any HOA dues, and basic maintenance current. Falling behind on those obligations can cause the loan to become due, which is the single most important thing to understand before signing.
How much money can I actually get?
Your available amount is called the principal limit. It depends on the age of the youngest borrower, current expected interest rates, and the lesser of your appraised home value or the FHA maximum claim amount, which is $1,249,125 for case numbers assigned in 2026. Older borrowers and lower rates produce a higher principal limit. Any existing mortgage is paid off first from the proceeds, so what reaches you is what remains after that payoff and closing costs. A licensed specialist can run your actual numbers in a few minutes.
Do I need good credit to qualify?
There is no minimum credit score for a HECM, but credit is still reviewed. Since 2015, FHA has required lenders to perform a financial assessment covering your credit history, your track record paying property taxes and insurance, and your residual income. If the assessment raises a concern, the lender may require a Life Expectancy Set-Aside, which reserves part of your proceeds to pay taxes and insurance on your behalf.
What if the loan balance ends up higher than the home's value?
HECMs are non-recourse loans. Neither you nor your heirs will ever owe more than the home is worth when the loan is repaid. FHA mortgage insurance covers the difference, which is part of what the insurance premium on the loan pays for.
Can my heirs keep the home?
Yes. When the last borrower passes away or moves out permanently, heirs can repay the loan balance or 95% of the current appraised value, whichever is less, and keep the home. They can also sell the home and keep any remaining equity, or sign it over to the lender and owe nothing further. Heirs generally have up to 6 months to act, with extensions of up to 12 months total available when they are actively working to sell or refinance.
Are there monthly payments?
No monthly mortgage payment is required. You must continue paying property taxes, homeowners insurance, HOA fees if you have them, and keep the home maintained. These are the same costs you carry today as a homeowner, but with a reverse mortgage, missing them can put the loan into default.
Is the money taxable, and will it affect my benefits?
Reverse mortgage funds are loan advances, not income, so they are generally not taxable. Social Security and Medicare are generally unaffected. Need-based programs are different: Medicaid and Supplemental Security Income can be affected if funds sit in an account rather than being spent in the month received. Confirm your situation with a tax advisor or benefits counselor before taking a large lump sum.
What are the real downsides?
Three things deserve straight talk. First, the balance grows over time because interest and mortgage insurance premiums accrue, which reduces the equity left to your heirs. Second, upfront costs including the FHA initial mortgage insurance premium, origination fee, appraisal, and closing costs can be significant, so a short stay in the home may not justify them. Third, if you cannot keep taxes, insurance, and maintenance current, the loan can be called due and foreclosure is possible. A HUD counselor will walk through all three with you.
What kinds of homes qualify?
Single-family homes, 2 to 4 unit properties where you occupy one unit, FHA-approved condominiums, and manufactured homes that meet FHA requirements. The property must be your primary residence and meet FHA property standards. Some condominiums that are not on the approved list can qualify through FHA's single-unit approval process.
How long does the process take?
Most applications close in about 30 to 45 days. That covers the HUD counseling session, which usually runs 60 to 90 minutes, plus the appraisal, underwriting, and closing. Timing varies with appraisal availability in your area and how quickly documents come back.
Is Sarah on this website a real person?
No. Sarah is an AI assistant, not a human being and not a licensed loan officer. Sarah answers general questions about how reverse mortgages work and collects your contact details so a specialist can reach you. Anything involving your specific numbers, a quote, or a loan decision is handled by a licensed human specialist. You can ask to speak with a person at any point, or call 678-866-1955 during business hours.
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Also protecting your family's future?
Many homeowners who look into a reverse mortgage are also planning ahead for funeral and burial costs so their family is not left with the bill.
Learn about final expense coverage