Straight answers to the questions homeowners and their families ask most about reverse mortgages (HECMs).
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.
Do I have to make monthly payments on a reverse mortgage?
No monthly mortgage payment is required. You must keep paying property taxes, homeowners insurance and any HOA dues and maintain the home. You can make voluntary payments at any time without penalty.
Can I get a reverse mortgage if I still have a mortgage?
Yes, if you have enough equity. The reverse mortgage pays off your existing mortgage at closing, which removes that monthly payment.
Is reverse mortgage money taxable?
Reverse mortgage payments are generally treated as loan proceeds, not income, so they usually aren't taxable. Check with a tax advisor about your situation.
Will a reverse mortgage affect Social Security or Medicare?
No, HECM proceeds generally don't affect Social Security retirement benefits or Medicare. They can affect needs-based programs like Medicaid and SSI if you keep the money past the month you receive it.
What if I move into a nursing home?
If you're away from the home for more than 12 months in a row for health reasons and no other borrower lives there, the loan becomes due. Shorter stays don't trigger repayment.
What is the reverse mortgage limit for 2026?
For FHA case numbers assigned on or after January 1, 2026, the HECM limit is $1,249,125 nationwide. Homes worth more can still qualify, but only value up to the limit counts.
Do I need counseling for a reverse mortgage?
Yes. Every HECM borrower must complete counseling with an independent HUD-approved agency before applying. It usually takes 60 to 90 minutes by phone, and family members can join.
Can I sell my home if I have a reverse mortgage?
Yes, any time. The loan is paid off from the sale, and you keep the remaining equity. There's no prepayment penalty.
What's the difference between a HECM and a proprietary reverse mortgage?
A HECM is insured by FHA and follows HUD's rules, including the loan limit. Proprietary or jumbo reverse mortgages are private loans for higher-value homes with their own rules and protections.