“Myth: A reverse mortgage means the bank takes your house.”
Reverse mortgages, explained honestly.
You keep the title. You keep living at home. A reverse mortgage turns part of your home's equity into cash, monthly income or a growing line of credit, with no required monthly mortgage payment. Here's how it really works, including the trade-offs.
For homeowners 62 and older, and the families helping them, in all 50 states.
The short version
- Youngest borrower
- 62 or older
- Who owns the home
- You do
- Monthly mortgage payment
- Not required
- Still yours to pay
- Taxes, insurance, upkeep
- 2026 HECM limit
- $1,249,125
- Owe more than the home's worth?
- Never
For FHA-insured HECMs. The balance grows over time as interest and insurance are added.
What people hear, and what's actually true
Most of what people “know” about reverse mortgages comes from old rules, bad ads or a neighbor's story. Here are six of the big ones.
“Myth:
The bank ends up owning my house.”You keep the title. With a HECM, the home stays in your name.
“Myth:
My kids will be stuck paying off the loan.”Heirs never owe more than the home is worth. HECMs are non-recourse loans.
“Myth:
I'll owe more than my house is worth.”The non-recourse rule protects you and your estate. Your balance can grow larger than the home's value over many years, but when the home is sold to repay the loan, neither you nor your estate owes the difference.
“Myth:
I can be forced out of my home.”You can stay as long as you meet the loan's terms. The loan doesn't come due while you live in the home as your primary residence and keep paying property taxes, homeowners insurance and HOA dues, and maintain the home.
“Myth:
My house has to be paid off first.”Many borrowers still have a mortgage. A HECM can pay off your existing mortgage at closing, which removes that monthly payment.
“Myth:
Reverse mortgages are only for people who are broke.”Many people use them as a planning tool. Homeowners use HECMs to pay off a mortgage and free up monthly cash, to keep a growing line of credit on standby for healthcare or emergencies, to delay drawing down retirement savings, or to buy a home that fits retirement better..
How a reverse mortgage works, step by step
Most loans take about 30 to 45 days from counseling to closing.
Talk it through
Ask anything and get an estimate based on your age, home value and any mortgage you still have.
HUD-approved counseling
A short session, usually by phone, with an independent counselor. It's required, and family can join.
Apply and appraise
We review income and tax history, and an FHA appraiser values your home.
Close and get paid your way
Choose a lump sum, monthly payments, a line of credit or a mix of them.
Ways to receive the money
You choose at closing, and with an adjustable-rate HECM you can usually change it later.
Line of credit
Draw only what you need. The unused credit grows over time, so it can act as a standby reserve.
Monthly payments
A set amount every month, for as long as you live there or for a term you choose.
Lump sum
One payment at closing with a fixed rate. Often used to pay off an existing mortgage.
A combination
For example, pay off a mortgage, take a monthly amount and keep a line of credit.
Is it a good fit?
A reverse mortgage isn't right for everyone. Here's an honest look.
Often a good fit if you
- Plan to stay in your home for years to come
- Want to get rid of a monthly mortgage payment
- Want a cushion for healthcare, in-home care or repairs
- Want to buy a home that suits retirement without a monthly mortgage payment
- Can comfortably keep paying taxes, insurance and upkeep
Probably not the right tool if you
- Expect to move or sell within a few years
- Want to leave the home free and clear above everything else
- Are struggling to pay property taxes or insurance today
- Need only a small amount you could borrow more cheaply
- Have someone pressuring you to sign or to buy an investment
Questions families ask first
Who qualifies for a reverse mortgage?
The youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity for the loan to pay off any existing mortgage. You must complete counseling with a HUD-approved agency, and the lender reviews your ability to keep up with taxes and insurance. Borrowers must be U.S. citizens or lawful permanent residents. See all requirements.
How much money can I get from a reverse mortgage?
It depends on the age of the youngest borrower (or eligible spouse), your home's value up to the 2026 limit of $1,249,125, and current interest rates. Older borrowers and lower rates mean more. Any existing mortgage is paid off first. Ask for your numbers.
Do I still own my home with a reverse mortgage?
Yes. You keep the title and can sell at any time. The lender has a lien on the home, like any mortgage, until the loan is repaid.
Can I lose my home with a reverse mortgage?
You can stay as long as the home is your primary residence and you keep paying property taxes, homeowners insurance and HOA dues and maintain the home. If those obligations aren't met, the loan can become due, which can lead to foreclosure.
What happens to my home when I pass away?
Your heirs can sell the home and keep any remaining equity, pay off the loan and keep it, or buy it for the lesser of the balance or 95% of the appraised value. They never owe more than the home is worth. An eligible non-borrowing spouse can stay in the home.
How much does a reverse mortgage cost?
Expect a 2% upfront FHA mortgage insurance premium based on your home's value (up to the limit), an origination fee capped at $6,000, normal closing costs, and interest plus a 0.5% annual insurance premium added to the balance. Most costs can be paid from the loan. See the full breakdown.
One person, from the first question to closing day
I'm Jason Stevens, a mortgage loan officer with Texana Bank. For over 20 years I've helped homeowners and families make decisions about their homes. With a reverse mortgage, the conversation matters as much as the numbers, so you'll work with one person who explains everything, takes calls from your kids, and never pushes.
NMLS #195798. Verify at NMLS Consumer Access. More about Jason.
See what you may qualify for
Tell us a little about the home and we'll run the real numbers. No cost, no obligation, and no credit check to get an estimate.
Prefer to talk? Call (813) 571-5526. Family members are welcome to call on a parent's behalf.
Or ask the AI assistant in the corner of your screen. It answers from HUD's rules, any time of day.