Reverse mortgages are available to those 62 years or older who own substantial equity in their home and use it as their primary residence. The most common reverse mortgage is the HECM (Home Equity Conversion Mortgage), insured by the FHA.

You must also:

• Maintain current property taxes, homeowner’s insurance, and home upkeep

• Not be behind on federal debts or liens

• Complete counseling from a HUD-approved counseling agency prior to application

• Important Notes & Considerations

  • You retain ownership and remain responsible for taxes, insurance, and maintenance.

  • Interest and fees are added to the loan balance over time — the balance grows, not shrinks.

  • The loan becomes repayable when you sell, move out long-term, or pass away. Heirs may need to repay the balance or sell the home to settle it.

  • Home must meet current property condition and safety standards; recent HUD updates require that certain liens (like PACE clean energy liens) be cleared before closing.

  • Some homes with Accessory Dwelling Units (ADUs) may still qualify as long as the ADU meets code, is subordinate to the main residence, and the borrower lives in the main unit.