Reverse Mortgages · Homeowners 62+
Stay in the home you love — and let it pay you back.
A reverse mortgage lets homeowners 62 and older turn part of their home equity into cash, with no required monthly mortgage payment. Take it as a lump sum, monthly income, a line of credit, or a combination.
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What is a reverse mortgage?
A reverse mortgage is a home loan for homeowners age 62 and older that converts part of your home equity into cash, with no required monthly mortgage payment. The most common type is a Home Equity Conversion Mortgage (HECM), insured by the FHA. You keep the title to your home and repay the loan when you sell, permanently move out, or pass away.
With a traditional mortgage, you send the lender a payment every month. A reverse mortgage works the other way. The lender pays you, drawing on equity you have already built. You can take the money as a lump sum, as fixed monthly payments for a set term or for as long as you live in the home, or as a line of credit you tap when you need it. You can also combine these. Interest and fees are added to the loan balance over time, so the amount you owe grows rather than shrinks.
You stay on the title and you stay in your home. To keep the loan in good standing, you must live there as your primary residence and stay current on property taxes, homeowners insurance, and basic upkeep. If you stop meeting those obligations, the loan can become due, so plan for them before you borrow. HUD requires every applicant to complete counseling with an independent, HUD-approved counselor before applying, a consumer protection that is rare in lending.
A HECM is non-recourse. The home itself satisfies the debt. Under FHA rules, when the loan comes due and the home is sold to repay it, you and your heirs are not required to pay more than the home is worth, even if the balance has grown past the sale price. FHA insurance covers any shortfall. When the last borrower leaves the home for good or passes away, the loan is repaid, usually from the sale. Anything left over belongs to you or your estate.
Key facts about a reverse mortgage
- A HECM is the FHA-insured reverse mortgage available to homeowners age 62 and older.
- There is no required monthly mortgage payment, though you must keep paying property taxes, homeowners insurance, and upkeep.
- You keep the title to your home and remain the owner.
- HUD requires independent counseling before you can apply.
- A HECM is non-recourse: you or your heirs never owe more than the home's value at sale when the loan comes due.
Benefits of a reverse mortgage
A reverse mortgage can give homeowners 62+ access to cash without selling the home or taking on a monthly mortgage payment. You can receive funds several ways, you keep FHA consumer protections, including the HUD-required counseling and non-recourse coverage that come with FHA insurance, and you stay in your home as long as you meet the loan terms. The right fit depends on your goals, so weigh these benefits against the costs and obligations with a HUD-approved counselor.
No required monthly mortgage payment
You are not required to make a monthly mortgage payment on a HECM. That frees up monthly cash flow on a fixed income. You still pay property taxes, homeowners insurance, and upkeep, and you must keep the home as your primary residence to keep the loan in good standing.
You stay the owner and stay in your home
You keep the title and remain the owner. The lender does not take your home. As long as you meet the loan terms, you cannot be forced to leave. Under HUD rules, ownership stays with you. This is one of the most common reverse mortgage myths.
Flexible ways to receive your money
You choose how to take the funds: a lump sum, fixed monthly payments for a set term or for as long as you live in the home, a line of credit you draw on as needed, or a combination. This lets you cover real needs like medical bills or home repairs.
Proceeds generally are not counted as taxable income
Because reverse mortgage funds are loan proceeds rather than earnings, they generally are not counted as taxable income. Because tax situations vary, confirm your specifics with a tax advisor. Whether a HECM fits your overall plan is a decision to make with a tax or financial advisor and your HUD counselor.
Consumer protections built into every HECM
A HECM carries consumer protections. FHA insurance requires independent counseling before you apply and provides the non-recourse guarantee. Federal lending law also gives you a 3-business-day right of rescission after closing to change your mind. These protections are built into every FHA-insured HECM.
Non-recourse protection for you and your heirs
A HECM is non-recourse. Under FHA rules, when the loan comes due and the home is sold to repay it, neither you nor your heirs are required to pay more than the home’s appraised value, even if the balance is higher. FHA insurance covers any shortfall. If your heirs want to keep the home instead of selling, they can do so by paying the loan balance or 95% of the appraised value, whichever is less.
A line of credit with a growth feature
If you take a HECM as a line of credit, any unused portion may grow over time at the same rate charged on the loan, which can give you access to more funds later. Under FHA rules this growth is built into the loan, but it is not a guaranteed investment return and depends on your interest rate. Many homeowners keep the line of credit as a cushion and draw on it only when a real need comes up.
Homeowners 62+
A clear path you control, from first question to funds
You should understand this loan before you decide anything. Below is the path most homeowners follow, from the first conversation to the day you receive funds. You set the pace, and you can stop at any step.
STEP 1:
Free, no-pressure talk
STEP 2:
HUD counseling
STEP 3:
Apply and appraise
STEP 4:
Close and receive funds
How to qualify for a reverse mortgage
To qualify for a HECM reverse mortgage, the youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity, often a home that is largely paid off. You also complete a financial assessment and HUD-approved counseling. Meeting these basics does not guarantee approval or a specific loan amount.
Age 62 or older
The youngest borrower on the loan must be at least 62. If a younger spouse is not yet 62, they may be listed as an eligible non-borrowing spouse. Under HUD rules their age is factored into the loan, which usually lowers the funds available, and after the borrower passes away they can stay in the home during a deferral period as long as they keep meeting the loan obligations. Confirm how this applies with a HECM specialist.
Sufficient home equity
You need enough equity in your home to support the loan, which often means the home is largely or fully paid off. If you still owe a balance, the HECM typically pays off that existing mortgage first. That payoff is why no monthly mortgage payment is required.
Home is your primary residence
The property must be the home you live in as your primary residence. Second homes and investment properties do not qualify. You must continue living in the home to keep the loan in good standing, since a permanent move-out can make the loan due.
Eligible property type
Eligible homes include single-family houses, 2-to-4 unit properties where you occupy one unit, HUD-approved condominiums, and some manufactured homes that meet FHA standards. A HECM specialist can confirm whether your specific property qualifies under FHA guidelines.
Financial assessment
The FHA requires a financial assessment of your ability to keep paying property taxes, homeowners insurance, and upkeep. The assessment confirms you can carry the loan. In some cases, a portion of the funds is set aside to cover these costs.
Complete HUD-approved counseling
Before you apply, HUD requires a session with an independent, HUD-approved counselor. The counselor explains how a HECM works, reviews the costs and obligations, and covers alternatives. You can ask questions with no obligation to proceed.
Meeting these requirements is a starting point, not a guarantee of approval or of any specific loan amount. Actual eligibility and the funds available depend on your age, your home’s appraised value, current interest rates, and the FHA financial assessment. Reach out to an NMB HECM specialist to see if you qualify.
A reverse mortgage is a big decision, and there is no rush. Bring your questions to one of our reverse mortgage specialists and get straight answers about your home and your options. The conversation is free, with no obligation to apply.
Christian Cunningham
VP, HECM DIVISION | NMLS# 145224
The protections behind your decision, and the people behind NMB
A HECM carries consumer protections rare in lending, including required HUD-approved counseling that exists for almost no other financial product. You also get a lender with more than 14,500 verified customer reviews and a 4.89 out of 5 average rating.
- FHA-insured under HUD's HECM program, which adds federal consumer protections (NMB is a private lender, not a government agency, and this is a loan, not a government benefit)
- HUD-approved counseling is required before you apply, so you understand the loan before you commit
- Non-recourse, which means you and your heirs are not required to repay more than the home sells for when the loan comes due
- A three-business-day Right of Rescission gives you time to cancel after closing if you change your mind
- 14,500+ verified customer reviews and a 4.89 out of 5 average rating
- A HECM team that includes a Certified Reverse Mortgage Professional (CRMP)
- Recognized on the Inc. 5000 list of fastest-growing U.S. companies and licensed in 47 states with 300+ registered loan officers
Frequently asked questions about reverse mortgages
What is a reverse mortgage and how does it work?
A reverse mortgage is a loan for homeowners 62+ that converts home equity into cash with no required monthly mortgage payment. The lender pays you through a lump sum, monthly payments, a line of credit, or a combination. The balance grows as interest and fees add up, and you repay it when you sell, move out permanently, or pass away, usually from the home’s sale.
Does the bank own my home with a reverse mortgage?
No. You keep the title and remain the owner of your home with a reverse mortgage. The lender does not take ownership. Under HUD rules, as long as you live in the home as your primary residence and stay current on property taxes, homeowners insurance, and upkeep, you cannot be forced to leave. This is the most common reverse mortgage myth. The home stays yours.
Do I have to make monthly payments on a reverse mortgage?
No. A HECM has no required monthly mortgage payment. That is the main difference from a traditional mortgage. You do still have to pay your property taxes, homeowners insurance, and home upkeep, and keep the home as your primary residence. Failing to meet those obligations can make the loan due.
What happens to my home when I pass away or move out?
When the last borrower sells, permanently moves out, or passes away, the reverse mortgage comes due and is usually repaid from the home’s sale. Any money left after the loan is repaid belongs to you or your estate. Your heirs can also choose to keep the home by repaying the loan balance or 95% of the appraised value, whichever is less.
Will my heirs be responsible for the reverse mortgage debt?
No. A HECM is non-recourse, which under FHA rules means neither you nor your heirs ever repay more than the home is worth at sale when the loan comes due. If the balance is larger than the sale price, FHA insurance covers the difference. To keep the home, heirs can repay the loan balance or 95% of the appraised value, whichever is less.
Who qualifies for a reverse mortgage?
To qualify for a HECM, the youngest borrower must be at least 62, the home must be your primary residence, and you need enough equity, often a home that is largely paid off. Eligible properties include single-family homes, some 2-to-4 unit and manufactured homes, and HUD-approved condos. You also complete a financial assessment and HUD counseling.
Is reverse mortgage money taxable?
Reverse mortgage funds are loan proceeds, not earnings, so they generally are not counted as taxable income. Because tax situations vary, confirm your specifics with a tax advisor. Loan proceeds do not affect Social Security retirement or Medicare benefits, since those are not based on income, but money you hold from a reverse mortgage could affect need-based programs like Medicaid or SSI. Review your situation with a tax or benefits advisor before you borrow.
How much money can I get from a reverse mortgage?
The amount you may receive, called the principal limit, depends on the youngest borrower’s age, your home’s appraised value, current interest rates, and the FHA HECM lending limit set by HUD ($1,209,750 in 2025). Older borrowers with more equity can typically access more. If you still owe on your current mortgage, HECM proceeds must first pay off that balance, which reduces the cash available to you. Required fees and any set-aside for taxes and insurance also affect the amount. No specific amount is guaranteed before a full review.
Is a reverse mortgage a government benefit or loan?
No. A reverse mortgage is not a government benefit, and NMB is not a government agency. A HECM is insured by the FHA, which adds consumer protections like required counseling and non-recourse coverage, but FHA insurance is not a government guarantee of your outcome. You borrow from a private lender, and the loan must be repaid like any other mortgage.
Why is counseling required before a reverse mortgage?
HUD requires every reverse mortgage applicant to meet with an independent, HUD-approved counselor before applying. The counselor explains how a HECM works, walks through the costs and obligations, and reviews alternatives so you can decide with clear information. There is no obligation to move forward after the session.
Can I change my mind after closing on a reverse mortgage?
Yes. With a HECM you generally have a 3-business-day right of rescission after closing. Under the federal Truth in Lending Act, you can cancel the loan in writing for any reason during that window, and you are not obligated on the loan; any fees you paid for the transaction are returned to you. The lender cannot release any funds until the rescission period ends.
Can I lose my home with a reverse mortgage?
You keep your home as long as you meet the loan terms. Under HUD rules, the loan can become due if you stop living there as your primary residence or fall behind on property taxes, homeowners insurance, or upkeep. As long as you meet those obligations, you cannot be forced out. Plan for these ongoing costs so the loan stays in good standing.
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Nationwide Mortgage Bankers, Inc NMLS# 819382 (www.nmlsconsumeraccess.org). COPYRIGHT 2023 NMBNOW | ALL RIGHTS RESERVED | DISCLAIMER & LICENSING | NMLSCONSUMERACCESS.ORG Nationwide Mortgage Bankers (NMB) is in no way affiliated with Nationwide Mutual Insurance Company.
Reverse Mortgage Disclosure: A reverse mortgage (Home Equity Conversion Mortgage, or HECM) is a loan that must be repaid. It is FHA-insured, but it is not a government benefit, and Nationwide Mortgage Bankers, Inc. is not a government agency or acting on behalf of HUD or FHA. Borrowers must be 62 or older, complete HUD-approved counseling, keep the home as their primary residence, and stay current on property taxes, homeowners insurance, and home maintenance. Failure to meet these requirements may cause the loan to become due and payable. This is not a commitment to lend; all loans are subject to credit and property approval. Nationwide Mortgage Bankers, Inc. NMLS# 819382 (www.nmlsconsumeraccess.org). Equal Housing Lender.
