What is a reverse mortgage?
A reverse mortgage lets homeowners 62 and older borrow against their home's equity with no monthly mortgage payment required. Instead of paying the loan down, the balance grows as interest and fees are added, and it is repaid when the last borrower dies, sells or moves out. You keep title to the home.
Most reverse loans are Home Equity Conversion Mortgages, or HECMs, insured by FHA. The 2026 HECM limit is $1,249,125.
Who qualifies
- All borrowers are 62 or older.
- The home is your principal residence, and you have enough equity. Any existing mortgage must be paid off from the loan or your own funds.
- You complete counseling with a HUD-approved counselor. Call 1-800-569-4287 to find one.
- You pass a financial assessment covering credit, your record of paying taxes and insurance over the prior 24 months, and residual income.
- The property qualifies. Single-family homes, 2-4 unit homes where you live in one unit, FHA-eligible condos and manufactured homes on permanent foundations built on or after June 15, 1976 can work. Second homes, investment properties and co-ops do not.
How you can receive the money
A HECM can pay out as a line of credit, monthly payments, a lump sum or a mix. How much you can access depends on the age of the youngest borrower, the home's appraised value up to the limit, and interest rates. Our reverse mortgage calculator gives a starting estimate.
What it costs, and what you still pay
Expect an origination fee, FHA mortgage insurance, closing costs and interest. Most can be financed into the loan, which means you pay them through a higher balance. You must still pay property taxes, homeowners insurance, any HOA dues and maintenance. If you fall behind, the loan can become due and you could lose the home. If the financial assessment shows a risk, the lender can require a set-aside of funds for taxes and insurance.
Spouses and heirs
The safest setup for a younger spouse is usually to wait until both are 62 so both can be borrowers. For loans made on or after August 4, 2014, an eligible non-borrowing spouse named in the loan may stay in the home after the borrower dies, if the loan is not in default, you were legally married at closing and until death, you lived in the home then and still do, and within 90 days you hold title or a legal right to stay for life.
When the loan ends, heirs can sell the home, refinance or pay it off. A HECM is nonrecourse, so neither you nor your heirs generally owe more than the home's value when it is sold. The loan can also come due if you are in a medical facility for more than 12 consecutive months, so tell family how it works.
Reverse mortgage vs. your other options
A HELOC or home equity loan usually costs less to set up, but it has payments and needs income to qualify. Selling and downsizing gives you all your equity, with no loan at all. A property tax deferral or exemption may solve a smaller problem for free or at a low rate. Veterans can also look at VA options. We will tell you if one of these fits better.
Buying a home with a reverse mortgage
HECM for Purchase lets a borrower 62 or older buy a new principal residence using a reverse loan. You pay the difference between the price and the loan from your own funds at closing, and no monthly mortgage payment is required after that. It is a common choice for owners who sell a larger home and want to keep cash in reserve.
Warning signs
The FTC warns consumers about pressure tactics. Be careful if anyone pushes you to buy an annuity, insurance or other product with your proceeds, tells you to skip counseling, or contacts you with a government-sounding offer. Take your time, and bring someone you trust. You generally have at least three business days after closing to cancel.
Reverse mortgage data by state
| State | 65+ | Owner-occupied | Median value | Price change (5-yr / 1-yr) |
|---|---|---|---|---|
| Arizona | 20.6% | 67.4% | $394,500 | +27.4% / +0.6% |
| California | 17.5% | 55.9% | $734,700 | +17.3% / -0.2% |
| Hawaii | 22.6% | 63% | $839,100 | +38.0% / +5.8% |
| Oregon | 21% | 63.3% | $477,600 | +15.8% / +0.3% |
| Washington | 18.3% | 63.8% | $564,600 | +20.0% / -0.9% |
Find your city
Each page below uses local Census and FHFA data to show how a reverse loan fits that community.
Arizona
California
- Anaheim
- Bakersfield
- Fresno
- Irvine
- Long Beach
- Los Angeles
- Oakland
- Riverside
- Sacramento
- San Diego
- San Francisco
- San Jose
- Santa Ana
- Stockton
Hawaii
Oregon
Washington
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. HUD non-borrowing spouse rules. HUD HECM financial assessment guide. FTC reverse mortgage guide.
Common questions
How old do you have to be for a reverse mortgage?
All borrowers on a HECM must be at least 62.
Do you lose your home with a reverse mortgage?
You keep title. You can lose the home if you stop paying property taxes or insurance, fail to maintain it, or move out, because those events can make the loan due.
What is the 2026 HECM limit?
The limit is $1,249,125 for FHA case numbers assigned on or after January 1, 2026.
Is reverse mortgage money taxable?
Loan proceeds are generally not taxable income and usually do not affect Social Security or Medicare. Need-based benefits such as Medicaid or SSI can be affected, so ask a benefits counselor or tax professional.
What happens to my spouse if they are not on the loan?
An eligible non-borrowing spouse may be able to stay in the home if HUD's conditions are met. Both spouses being borrowers is usually the safer setup when both are 62.
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.