Borrower age: 62+
HECM borrowers must be at least 62. A younger non-borrowing spouse requires separate consideration.
Home equity in retirement
Reverse mortgages.
The whole picture.
Your home is more than an asset. Understand how a reverse mortgage works—and how it compares with an HEI or HELOC—before choosing what comes next.
A HECM has no required monthly principal-and-interest payment while its terms are met. Taxes, insurance, upkeep and other property charges still apply. The loan balance can grow.
Company NMLS #2808857 CA DRE #02423720
You keep the title.The lien, costs and homeowner obligations still matter.
Start with the structure
A loan against your equity.
A different repayment pattern.
A Home Equity Conversion Mortgage (HECM) is an FHA-insured reverse mortgage for eligible homeowners age 62 and older. You borrow against your home, retain title and defer required principal-and-interest payments while meeting the loan conditions.
Interest and fees are added to what you owe. The balance is generally repaid when the home is sold, the last remaining borrower no longer occupies it as a principal residence, or the last borrower dies, subject to eligible non-borrowing spouse protections.
Sources: CFPB: reverse mortgage basics · CFPB: when repayment is due
Who may qualify
Age is the starting point.
Not the whole application.
These are general HECM requirements. A lender must review the household, property and program details. Private reverse mortgages have different rules.
Your principal residence
You must live in the home as your main residence. The property must meet the program’s eligibility and condition standards.
Sufficient equity
Own the home outright or be able to pay off the existing mortgage at closing with proceeds and/or your own money.
Financial assessment
The lender reviews your ability to meet ongoing obligations. Federal debt issues must be addressed; funds may need to be set aside for property charges.
Independent counseling
Complete counseling with a HUD-approved reverse mortgage counseling agency to discuss costs, obligations and alternatives.
A property-level review
Title, valuation, property condition and required repairs are reviewed. Equity alone is not an approval.
Sources: CFPB: HECM eligibility · CFPB: borrower responsibilities and assessment · HUD: HECM program and counselors
Reverse mortgage vs. HEI vs. HELOC
Same equity.
Different obligations.
Compare the structure before the headline benefit. None of these options is free money, and each can affect the equity you keep.
All comparison topics shown. This is a general comparison, not an eligibility result or recommendation.
On a smaller screen, swipe inside the table to compare all three options.
| What to compare | Reverse mortgageHECM · age 62+ | Home equity investmentHEI · a home equity contract | Home equity line of creditHELOC · revolving credit |
|---|---|---|---|
| What it is | A loan against your home. This comparison describes the FHA-insured HECM. | A home equity contract: cash now for a future settlement tied partly to home value. | A revolving credit line secured by your home. |
| Age and qualification | HECM borrowers must be 62+. Equity, occupancy, financial assessment, property and counseling requirements apply. | Provider-specific age, equity, credit, property and state requirements. Not the HECM age-62 program. | Lender-specific equity, income, credit and repayment requirements; not the HECM age-62 program. |
| Monthly obligation | No required monthly principal-and-interest payments while you meet the loan terms. Property charges still apply. | Generally no monthly payment to the HEI provider. Existing mortgage payments and property expenses continue. | Required payments on drawn funds; they may increase when the draw period ends or rates change. |
| What drives the cost | Interest and applicable fees/insurance added to the balance; debt can grow over time. | The contract’s settlement formula, home valuation, fees, term and any caps or adjustments. No monthly payment does not mean low cost. | Interest on drawn balances, commonly at a variable rate, plus any fees. Check payment changes and rate limits. |
| Your existing mortgage | Must be paid off at closing, using HECM proceeds and/or your own funds. That reduces spendable proceeds. | May stay in place if the provider accepts the lien structure. You remain responsible for it. | Often stays in place as a separate first mortgage, with the HELOC as a second lien. |
| When you settle up | Generally when the last borrower sells, dies or no longer uses the home as a principal residence, subject to eligible spouse protections. | At the contractual deadline or an earlier triggering event, such as a sale. A large lump sum may be due. | Under the draw/repayment schedule and at sale or other payoff events stated in the agreement. |
| The home and your family | You keep title, subject to the lien and loan duties. Review non-borrowing spouse status and heirs’ repayment options. | Review liens, occupancy, inheritance, refinancing and sale restrictions in the actual contract. | The lien must be addressed when transferring or selling. Missing required payments can put the home at risk. |
| The question to ask | What will my balance and remaining equity look like over time, after costs and the mortgage payoff? | What would I owe under low, flat and rising home-value scenarios, including an early exit? | Can I afford the payment during the draw period, after it ends, and if rates rise? |
All three involve obligations secured by, or connected to, your home. Review actual written terms, tax implications and exit costs. Program and state availability vary.
Sources: CFPB: reverse mortgage basics · CFPB: home equity contract risks · CFPB: how a HELOC works
Look beyond the monthly payment
What does a reverse
mortgage really cost?
Request an itemized loan illustration. Compare cash available after payoff and fees, the projected balance over time, and what may remain for a future move or your family.
Upfront costs
May include origination, appraisal, title and recording costs, plus FHA mortgage insurance for a HECM. Financing eligible costs means less cash available and a larger balance.
A growing balance
Interest, mortgage insurance and applicable servicing fees can be added to the debt. Costs compound; deferring loan payments does not erase them.
Property expenses
Keep paying taxes, homeowners insurance, maintenance and applicable HOA or other charges. Mortgage insurance does not replace homeowners insurance.
Sources: CFPB: reverse mortgage costs · CFPB: spouses and key terms
Think about the exit before you enter. A move, sale, death or failure to meet loan duties can trigger repayment. Upfront costs and a rising balance can make a reverse mortgage less suitable if you expect to move soon or need to preserve equity.
What you can access
Your home value is not
your available cash.
HECM sizing considers age, interest rates and the property value subject to the applicable FHA limit. Your mortgage payoff, closing costs and any required reserves or set-asides reduce usable proceeds.
Depending on the loan structure, proceeds may be available as a lump sum, a line of credit, scheduled advances or a combination. Fixed-rate and adjustable-rate HECMs have different disbursement choices and restrictions.
Sources: HUD: HECM program and counselors · CFPB: proceeds and payment options
Ask for this in writing
Four numbers to understand
- 1The gross loan amount available
- 2The existing mortgage and costs to be paid
- 3The net proceeds and any funds set aside
- 4The projected payoff and remaining equity over time
No estimated proceeds, rates or approval amounts are calculated on this page.
A household decision
Make space for
the family conversation.
Ownership, borrowing status and the right to remain in the home are different questions. Discuss all three before signing.
Spouses and co-borrowers
Confirm who will be a borrower and whether a non-borrowing spouse qualifies for HUD protections. Those protections have conditions; other relatives are not automatically entitled to remain after a repayment event.
Sources: CFPB: spouses and key terms
Heirs and the payoff
Heirs may keep the home by resolving the balance or sell it and retain remaining equity after payoff and costs. FHA-insured HECMs have repayment protections; when a balance exceeds value, special appraisal-based rules may apply. Ask the servicer about the exact options and act promptly on notices.
Sources: CFPB: heirs and inherited homes
A future move or care need
A permanent move or an extended healthcare absence can affect loan status, subject to co-borrower and eligible spouse protections. Include potential care costs and a future move in your plan rather than assuming you can remain indefinitely without conditions.
Sources: CFPB: when repayment is due
A thoughtful next step
Compare first.
Commit only when clear.
A reverse mortgage is one option—not the default answer. A HELOC, fixed-rate home equity loan, refinancing, downsizing, waiting or local assistance may deserve consideration too.
Be cautious about pressure to sign, pay for information available free from HUD, or use proceeds to buy another financial product. A licensed loan discussion does not replace independent housing counseling.
Sources: CFPB: HECM eligibility · FTC: shopping and avoiding scams
Find HUD counseling resources- 1
Start with your goals
Discuss your housing plans, existing mortgage, household members and ability to pay property expenses.
- 2
Compare written scenarios
Review HECM, HEI and HELOC obligations, including a short stay, a long stay and a future sale.
- 3
Complete independent counseling
For a HECM, use a HUD-approved counseling agency and resolve questions before moving forward.
- 4
Review the actual offer
The lender evaluates the application and property. Review final disclosures, repayment triggers and family implications before closing.
Questions worth asking
Clear answers.
No small-print surprises.
These answers describe HECMs unless stated otherwise. Exact terms and household circumstances matter.
What does non-recourse mean for a HECM?
The home secures the loan. Non-recourse means the lender’s recovery is limited to the home, rather than the borrower’s or estate’s other assets. It does not cancel property obligations or prevent foreclosure after a default. Review the servicer’s procedures and FHA repayment options with a qualified adviser.
Do I still own my home with a reverse mortgage?
Yes. With a HECM, title remains in your name, but the lender has a lien. You must meet the loan obligations, including occupancy, taxes, insurance and upkeep. Failure to do so can lead to default and foreclosure.
Sources: CFPB: reverse mortgage basics
Does no monthly mortgage payment mean I have no housing bills?
No. HECM borrowers do not make required monthly principal-and-interest payments, but taxes, homeowners insurance, maintenance and applicable HOA or other property charges remain their responsibility. Interest and fees can still grow the loan balance.
Sources: CFPB: spouses and key terms
Can I get a reverse mortgage if I still have a mortgage?
Possibly. The existing mortgage must be paid off when the HECM closes. Proceeds and, if needed, your own funds can cover that payoff. The payoff and financed costs reduce the cash available to you; having equity alone is not an approval.
Sources: CFPB: HECM eligibility
Is a reverse mortgage the same as an HEI?
No. A reverse mortgage is a loan with interest and a growing balance. An HEI is a home equity contract with a future settlement based partly on home value. The settlement formula and exit terms are essential to understanding its cost.
Sources: CFPB: home equity contract risks
How much could I receive?
There is no universal percentage or amount. HECM proceeds depend on the youngest borrower or eligible non-borrowing spouse’s age, the interest rate, property value and applicable FHA limit. Mortgage payoff, costs and any required set-asides reduce available proceeds. Request a written, itemized illustration.
Sources: HUD: HECM program and counselors
What happens if I move into long-term care?
Occupancy matters. A HECM can become due after a borrower is away in a healthcare facility for more than 12 consecutive months if no co-borrower remains, subject to eligible non-borrowing spouse protections. Review the household’s circumstances with the servicer before a move.
Sources: CFPB: when repayment is due
Can my children inherit the home?
They can inherit it, but the reverse mortgage still needs to be resolved when due. Heirs may repay and keep the home or sell it and retain remaining equity after payoff and costs. Contact the servicer promptly about deadlines, extensions and FHA-insured repayment protections.
Sources: CFPB: heirs and inherited homes
Can my spouse remain if they are not a borrower?
Only certain non-borrowing spouses qualify for HUD protections, and conditions must continue to be met. A spouse or other family member is not automatically protected merely because they live there. Confirm the documented status before closing.
Sources: CFPB: spouses and key terms
Is every reverse mortgage federally insured?
No. HECMs are insured by the FHA. Proprietary reverse mortgages are private products with different terms and protections; do not assume the HECM rules on this page apply to them. Ask which product is being offered.
Sources: CFPB: spouses and key terms
Your next conversation
Bring your questions.
Leave with a clearer comparison.
Ask a licensed specialist about the options available for your property and state. Start with a conversation, not an assumption that you qualify.
Not a commitment to lend. Availability and final terms depend on eligibility, property appraisal, program guidelines, and underwriting. A request for information is not a loan application or approval. Do not send sensitive documents by ordinary email.
Sources & important information
Sources checked October 30, 2026. General education; not individual legal, tax or financial advice. Consult your own advisers about tax treatment, benefits and estate planning. No government agency endorses this page or Equity Edge Lending Inc..
- CFPB: reverse mortgage basics
- CFPB: borrower responsibilities and assessment
- CFPB: HECM eligibility
- HUD: HECM program and counselors
- CFPB: reverse mortgage costs
- CFPB: proceeds and payment options
- CFPB: when repayment is due
- CFPB: spouses and key terms
- CFPB: heirs and inherited homes
- Fannie Mae: non-recourse and homeowner duties
- CFPB: home equity contract risks
- CFPB: how a HELOC works
- FTC: shopping and avoiding scams
HECM rules described here do not automatically apply to proprietary reverse mortgages. Product availability, licensing, eligibility and final terms must be confirmed for the specific property and lender.
Our editorial policyRequest a correction