Reverse mortgages in Federal Way
A reverse mortgage works the same in King County as it does anywhere, but the numbers do not. Below is what the data says about Federal Way owners, and what that means if you are 62 or older and thinking about staying in your home.
| Measure | Federal Way | Washington | U.S. |
|---|---|---|---|
| Residents 65 and older | 15% | 18.3% | 18.9% |
| Owner-occupied homes | 55.3% | 63.8% | 65.2% |
| Median home value | $552,800 | $564,600 | $332,700 |
| Monthly owner costs, no mortgage | $831 | $773 | $638 |
| Monthly owner costs, with mortgage | $2,351 | $2,445 | $1,963 |
| Median household income | $86,909 | $98,141 | $80,734 |
| Veterans | 5,307 | 473,124 | 16,185,883 |
Monthly owner costs are medians and include taxes, insurance, utilities and any mortgage. The Census reports these up to $4,000.
Is $1,520 a month the number that matters?
That is about how much less a Federal Way owner without a mortgage spends each month than one with a mortgage, going by Census medians of $831 and $2,351.
It is a broad measure, since homes and loans differ, but it shows why removing a required payment can matter more than a lump of cash. Interest still builds on the balance, so the saving is paid for out of your equity.
Home prices around Federal Way
FHFA's House Price Index shows values in the Seattle-Bellevue-Kent metro area about flat, at +0.3% over the past year and +24.6% over five years. That compares with +20.0% statewide over five years, so this area has moved faster than Washington as a whole.
If your home tracked the index, a value of $552,800 today means about $440,000 five years ago. That $110,000 difference is what makes a reverse loan possible for owners who thought they had little to work with.
With prices moving slowly, do not plan around future gains. Build the plan on what the home is worth today and on how quickly the balance would grow.
Fewer seniors than the state average
The 15% share of residents 65 or older in Federal Way sits well under the 18.3% statewide figure. Still, that is about 15,000 residents, and many have a decade or more of equity behind them.
Because many in this group are at the younger end of eligibility, timing matters. Waiting generally raises the share of value you can access, while a credit line opened early can have time to grow.
What a King County reverse loan does not cover
Your property tax, insurance, HOA dues and repairs stay your responsibility. Federal Way owners without a mortgage report about $831 a month for those kinds of costs and utilities.
Missing them is the most common way a reverse loan goes wrong, so build in a reserve. A home that sits in disrepair can also cause problems, because you agree to keep it maintained.
Property tax help in King County
With monthly no-mortgage costs of $831 here, tax relief is worth checking first. Washington offers a senior property tax exemption and freeze from age 61 and a deferral from age 60, with income limits set county by county, plus a limited-income deferral up to $57,000 of disposable income. The Department of Revenue thresholds change for 2027, and more households may qualify. Ask the King County assessor before you borrow against the home. See the full Washington reverse mortgage guide.
The rules in brief
All borrowers must be 62 or older and live in the home as their principal residence, and you must first meet with a HUD-approved counselor (1-800-569-4287). The loan comes due when the last borrower dies, sells or moves out. Our reverse mortgage guide covers costs, spouses, heirs and how you can receive funds. You can also compare it to a HELOC, or see our full Federal Way mortgage page.
More in Washington: Bellevue, Renton, Kent, Seattle, Spokane Valley, Everett.
Sources: U.S. Census Bureau QuickFacts (American Community Survey 2020-2024, population estimates July 2025). FHFA House Price Index, 2026 Q2. HUD 2026 HECM limit.
Common questions
Can I get a reverse mortgage on my Federal Way home?
Generally yes, if the home in King County is your main residence, all borrowers are at least 62, there is enough equity, and it passes an FHA appraisal. You also complete counseling and a financial assessment.
Does the HECM limit matter for a Federal Way home?
Most are comfortably under it. The 2026 limit is $1,249,125, and the Federal Way median is $552,800, so proceeds are driven by your age, the appraisal and rates rather than the cap.
How much have home values risen near Federal Way?
FHFA shows Seattle-Bellevue-Kent metro at +0.3% over one year and +24.6% over five years as of the second quarter of 2026.
Who still pays the King County property tax bill?
You do. On a reverse mortgage you keep paying property taxes, insurance and upkeep. If you do not, the loan can become due.
Bayview Residential is a mortgage broker and is not affiliated with HUD or FHA. A reverse mortgage is a loan that must be repaid, and the balance grows over time. You must keep paying property taxes, insurance and home maintenance, and live in the home as your principal residence. All loans are subject to eligibility and approval. This page is general information and not legal, tax or benefits advice.