What is a reverse mortgage?

A reverse mortgage is a loan that lets homeowners aged 62 and older convert part of their home equity into cash without selling the home or making monthly mortgage payments. The most common type is the FHA-insured Home Equity Conversion Mortgage (HECM). The loan is repaid when the borrower sells, permanently moves out, or passes away.

Do you have to pay back a reverse mortgage?

Yes, but not in monthly payments. The full balance — principal plus accrued interest and fees — becomes due when the last borrower sells the home, permanently moves out, or dies. A HECM is a non-recourse loan, so you or your heirs never owe more than the home's value at the time of repayment, even if the balance exceeds it.

What is the reverse mortgage age requirement?

The youngest borrower must be at least 62 to qualify for an FHA HECM. Some proprietary (jumbo) reverse mortgages are available to homeowners as young as 55.

How much money can you get from a reverse mortgage in 2026?

Your available proceeds, called the principal limit, depend on the youngest borrower's age, current interest rates, and your home value up to the 2026 FHA HECM limit of $1,249,125. Older borrowers and lower rates generally produce a higher principal limit. Home value above the limit is not counted toward HECM proceeds, though a proprietary jumbo reverse mortgage can access higher amounts.

Can you lose your home with a reverse mortgage?

You keep title to your home. The loan can become due and payable, and the home subject to foreclosure, only if you fail to meet the loan terms — for example, by not paying property taxes or homeowner's insurance, not maintaining the property, or no longer living in it as your primary residence.

What are the costs and fees of a reverse mortgage?

Reverse mortgage costs can include an origination fee, the FHA initial mortgage insurance premium, third-party closing costs (appraisal, title, recording), and servicing fees. Most costs are typically financed into the loan balance rather than paid out of pocket, and interest accrues on the outstanding balance over time.

Is reverse mortgage counseling required?

Yes. Federal law requires every HECM applicant to complete an independent counseling session with a HUD-approved counseling agency before applying. The session reviews how the loan works, costs, and alternatives, and you receive a certificate that must accompany the application.

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“This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.”

HighTechLending Inc., doing business as American Senior Lending, is an Equal Housing Lender, NMLS ID #7147 (www.nmlsconsumeraccess.org). 2030 Main Street, Suite #500, Irvine, CA 92614.

A reverse mortgage is a loan secured by your home. When the loan becomes due and payable, some or all of the home’s equity may no longer belong to the borrower. Repayment is typically required through the sale of the home or from other available funds, including accrued interest. Lenders may charge fees such as an origination fee, mortgage insurance premium (if applicable), closing costs, and servicing fees. These costs are generally added to the loan balance, and interest accrues on the outstanding balance over time, increasing the total amount owed.

Borrowers remain responsible for paying property taxes, homeowner’s insurance, required maintenance, and any related assessments, which may be substantial. We do not establish escrow accounts for these payments, though a tax and insurance set-aside may be required or available in certain cases. The borrower must occupy the home as their primary residence and maintain the property in accordance with loan terms.

The loan becomes due and payable if the borrower or eligible non-borrowing surviving spouse dies, sells the home, permanently moves out, or otherwise fails to comply with the loan terms. If the loan is not repaid when due, the property may be subject to foreclosure or other legal remedies. Interest on a reverse mortgage is generally not tax-deductible until the loan is partially or fully repaid. Borrowers should consult a tax or financial professional regarding their individual circumstances.

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American Senior Lending – NMLS #7147 2030 Main St. #500 Irvine, CA 92614 (866) 799-3443 (Not for use by New York borrowers) ACT@americansenior.com

American Senior

Affiliations

Compliance

“This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.”

American Senior Lending – NMLS #7147
2030 Main St. #500
Irvine, CA 92614
(866) 799-3443
(Not for use by New York borrowers)
ACT@americansenior.com