Reverse mortgages, explained.

Who may be eligible?

HECM borrowers must be at least 62, use the home as their principal residence, and have sufficient equity. Any existing mortgage must be paid off at closing, using the proceeds or other funds. The property must meet program standards. Independent counseling from a HUD-approved agency is required.

What determines how much I can borrow?

Proceeds depend on factors including the age of the youngest borrower or eligible non-borrowing spouse, interest rates, the home’s value, and applicable program limits. Existing liens and loan costs reduce the amount available.

Are monthly mortgage payments required?

Scheduled monthly principal-and-interest payments are generally not required while you meet the loan terms. You must still pay property taxes, homeowners insurance, applicable association charges, and maintain the home as your principal residence in good repair.

Interest, mortgage insurance, and applicable fees add to the balance over time, reducing remaining equity. Discuss upfront and ongoing costs before choosing a loan.

Does credit affect eligibility?

Eligibility is not determined by a credit score alone. The lender reviews your credit and payment history, income, and financial obligations to assess your ability to meet ongoing property costs. A set-aside from loan proceeds may be required for future taxes and insurance.

When is the loan repaid?

The loan generally becomes due when the home is sold, no borrower continues to occupy it as a principal residence, or the last borrower dies. Eligible non-borrowing spouses may qualify for repayment deferral under specific rules. Failing to meet property-charge or maintenance obligations can also cause the loan to become due and may lead to foreclosure.

Discuss how a reverse mortgage could affect a spouse, other residents, and heirs, alongside alternatives such as a HELOC or selling the home.

Learn more: HUD HECM overview · CFPB reverse mortgage resources. This website is not HUD or FHA and is not endorsed by a government agency.