Who qualifies for a reverse mortgage?

For a HECM, all borrowers must be 62 or older, live in the home as their primary residence and complete counseling with a HUD-approved counselor. You must own the home outright or be able to pay off your existing mortgage at closing using reverse mortgage proceeds, your own funds, or both.

Do I still own my home with a reverse mortgage?

Yes. You keep the title to your home. You must continue to live there, pay property taxes and homeowners insurance, and keep the home maintained.

Do I make monthly payments on a reverse mortgage?

No monthly mortgage payment is required on a HECM while you meet the loan terms. The balance grows over time and is generally repaid when the last borrower moves out, sells or passes away.

Can I lose my home with a reverse mortgage?

Yes, if you don't meet the loan terms. Falling behind on property taxes or insurance, failing to maintain the home or no longer living there can cause the loan to become due.

How can I receive reverse mortgage funds?

HECM funds can be taken as a lump sum, a line of credit, monthly payments or a combination, depending on the loan type you choose.

What happens to my heirs with a reverse mortgage?

When the loan becomes due, heirs can generally repay the balance and keep the home, or sell it. A HECM is non-recourse, so the amount owed generally can't exceed the home's value when it is sold.

Reverse Mortgage (HECM) for Homeowners 62+

The basics

What Is a Reverse Mortgage?

A reverse mortgage lets homeowners 62+ tap into their home equity. Instead of making monthly mortgage payments, you may receive funds as a lump sum, a line of credit or monthly payments. You must keep paying property taxes, homeowners insurance and upkeep. The loan generally becomes due when you sell, move out or pass away, and with an FHA-insured HECM, you or your heirs generally won't owe more than the home's value.

Who: Homeowners 62+
Most common: FHA-insured HECM
Monthly payment: Not required

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An older homeowner at home reviewing reverse mortgage paperwork

How it works

Your reverse mortgage in four steps

A HECM has a few extra safeguards, including counseling. One licensed loan officer guides you through each step.

01
Talk through your goals
Meet with a licensed loan officer, ideally with family, to see whether a HECM fits your retirement plans and how funds could be paid out.
02
Complete HUD counseling
Meet with an independent HUD-approved counselor, who explains the costs, your obligations and alternatives before you move forward.
03
Appraisal and financial assessment
An FHA appraisal sets the home's value, and the lender reviews your income and credit to confirm you can keep up with taxes and insurance.
04
Close and receive funds
Choose a lump sum, line of credit, monthly payments or a mix. You keep living in the home and paying taxes, insurance and maintenance.

Is it right for you?

Who Is Eligible for a Reverse Mortgage?

A reverse mortgage may be a good option for homeowners 62+ who want to stay in their home without monthly mortgage payments. To qualify for a HECM, you must live in the home as your primary residence, complete HUD-approved counseling and keep up with property taxes, homeowners insurance and maintenance. For an FHA-insured HECM, you must own the home outright or be able to pay off your existing mortgage at closing using reverse mortgage proceeds, your own funds, or both. The amount available depends on your age, the interest rate and the property value used in the calculation.

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Age 62 or older
All borrowers on the loan generally must be at least 62.
Your primary residence
You live in the home and own it outright, or can pay off your existing mortgage at closing.
HUD-approved counseling
An independent counselor walks you through costs and alternatives.
Ongoing obligations
You keep paying property taxes, homeowners insurance and maintenance.

Do you qualify?

Reverse mortgage eligibility

What HECM lenders and HUD guidelines generally require.

All borrowers must be homeowners aged 62 or older.
You must have substantial home equity, typically 50% or more.
The home must be your primary residence (second homes and vacation homes do not qualify).
Borrowers must pass a financial assessment showing they can keep paying property taxes, homeowners insurance and home maintenance.
All borrowers must complete HUD-approved HECM counseling to make sure they understand the reverse mortgage's terms and costs.
Have questions first?
A licensed loan officer can explain how a HECM works and whether it fits your plans, with no pressure.
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Reverse mortgage FAQs

For a HECM, all borrowers must be 62 or older, live in the home as their primary residence and complete counseling with a HUD-approved counselor. You must own the home outright or be able to pay off your existing mortgage at closing using reverse mortgage proceeds, your own funds, or both.
Yes. You keep the title to your home. You must continue to live there, pay property taxes and homeowners insurance, and keep the home maintained.
No monthly mortgage payment is required on a HECM while you meet the loan terms. The balance grows over time and is generally repaid when the last borrower moves out, sells or passes away.
Yes, if you don't meet the loan terms. Falling behind on property taxes or insurance, failing to maintain the home or no longer living there can cause the loan to become due.
HECM funds can be taken as a lump sum, a line of credit, monthly payments or a combination, depending on the loan type you choose.
When the loan becomes due, heirs can generally repay the balance and keep the home, or sell it. A HECM is non-recourse, so the amount owed generally can't exceed the home's value when it is sold.

Reverse Mortgage (HECM)

What Is a Reverse Mortgage?

Your reverse mortgage in four steps

Talk through your goals

Complete HUD counseling

Appraisal and financial assessment

Close and receive funds

Who Is Eligible for a Reverse Mortgage?

Age 62 or older

Your primary residence

HUD-approved counseling

Ongoing obligations

Reverse mortgage eligibility

Have questions first?

Ask Homy anything about home loans

Reverse mortgage FAQs

Who qualifies for a reverse mortgage?+

Do I still own my home with a reverse mortgage?+

Do I make monthly payments on a reverse mortgage?+

Can I lose my home with a reverse mortgage?+

How can I receive reverse mortgage funds?+

What happens to my heirs with a reverse mortgage?+

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