Reverse Mortgages 101 (2026 Update)
If you’re 62 or older and own your home, a reverse mortgage may help you access your home equity without adding a new monthly payment. Here’s a clear overview to help you understand how it works.
What Is a Reverse Mortgage?
A reverse mortgage allows homeowners age 62 or older to convert part of their home equity into cash. You remain on the title, and you can receive funds as a lump sum, monthly payments, a line of credit, or a combination. You must continue paying property taxes, homeowner’s insurance, and keep the home maintained.
Who Qualifies?
- At least 62 years old
- Primary residence
- Sufficient equity
- Completion of HUD-approved counseling
How Funds Are Commonly Used
- Pay off an existing mortgage
- Supplement monthly retirement income
- Cover medical or in-home care costs
- Make home upgrades for safer aging
- Create a long-term safety net using a line of credit
Loan Repayment
Repayment occurs when the last borrower moves out permanently, sells the home, or passes away. Heirs can refinance to keep the home or sell it. If the home sells for less than the loan balance, FHA insurance covers the difference.
If you’d like to see what your home may qualify for, reach out and I’ll run numbers for you with zero pressure.
