How much money can I get from a reverse mortgage?

The amount depends on your age, home value, current interest rates, and the type of reverse mortgage. Generally, older borrowers with higher-value homes can access more funds. Our team can provide a personalized estimate based on your specific situation.

Do I still own my home with a reverse mortgage?

Yes, you retain ownership of your home and can live in it as long as you meet the loan obligations, including paying property taxes, homeowners insurance, and maintaining the property in good condition.

What happens when I die or move out permanently?

The loan becomes due and must be repaid. Your heirs can choose to repay the loan and keep the home, or sell the home to repay the debt. If the home sells for more than the loan balance, the excess goes to your heirs.

Can I lose my home with a reverse mortgage?

You can lose your home if you fail to meet loan obligations such as paying property taxes, homeowners insurance, or maintaining the property. However, you cannot be forced out due to loan balance increases or interest rate changes.

How do I receive the money from a reverse mortgage?

You can choose from several payment options: lump sum, monthly payments for life or a set term, line of credit you can draw from as needed, or a combination of these options. You can also change payment plans during the loan term.

Are reverse mortgage proceeds taxable?

Generally no, reverse mortgage proceeds are not considered taxable income by the IRS. However, you should consult with a tax professional about your specific situation, especially regarding potential impacts on government benefits.

Reverse Mortgages

Convert Home Equity Into Cash

What is a reverse mortgage?

A reverse mortgage allows homeowners age 62 or older to convert home equity into cash without monthly mortgage payments. The loan is repaid when you sell the home, move out, or pass away.

Guide answer

What is a reverse mortgage?

A reverse mortgage allows homeowners age 62 or older to convert home equity into cash without monthly mortgage payments. The loan is repaid when you sell the home, move out, or pass away.

Reviewed by Sebastian Naranjo, Founder & Co-Owner, Licensed MLO, NMLS #2313958

Review standards

Reviewed lending guidance, not generic mortgage copy

Sebastian Naranjo reviews these guide surfaces for practical lending fit, borrower documentation, and program tradeoffs.

Licensed review
Loan guidance is reviewed by a licensed mortgage professional before it appears in the guide shell.
Program fit
Each page explains who the loan can fit, common tradeoffs, and when another program may be stronger.
California context
The guide keeps state lending context, local market differences, and borrower documentation in view.

A reverse mortgage allows seniors aged 62 and older to convert a portion of their home equity into cash without selling their home or making monthly mortgage payments. At SRK CAPITAL, we walk seniors and their families through each step of the reverse mortgage process and explain the costs plainly before anything is signed.

62+

Age Requirement

Monthly Payments

Stay

In Your Home

Counseling Comes First

HUD requires a one-on-one session with an independent counselor before anyone can take your application. We will point you to one, and no lender sits in on it.

You Cannot Owe More Than the House

A HECM is non-recourse. When the loan comes due and the home sells for less than the balance, FHA insurance covers the gap. Your heirs are never billed for the difference, and no other asset can be touched.

How Reverse Mortgages Work

Understanding the reverse mortgage process helps you make informed decisions about accessing your home equity.

Step 1

Qualification Assessment

We evaluate your age, home ownership, and financial situation to determine your eligibility for a reverse mortgage.

Step 2

Loan Amount Calculation

Based on your home's value, age, and current interest rates, we calculate how much you can receive.

Step 3

Counseling & Approval

Complete required HUD counseling, finalize loan terms, and receive approval for your reverse mortgage.

Step 4

Access Your Funds

Choose how to receive your funds: lump sum, monthly payments, line of credit, or combination.

No Monthly Payments Required

With a reverse mortgage, you don't make monthly mortgage payments. The loan is repaid when you sell the home, move out permanently, or pass away.

Types of Reverse Mortgages

There are three main types of reverse mortgages, each designed for different situations and financial needs.

Home Equity Conversion Mortgage (HECM)

The most common type of reverse mortgage, insured by the Federal Housing Administration (FHA) and available through FHA-approved lenders.

Federally insured by FHA

Can be used on most types of homes

Flexible payout options

Non-recourse loan protection

Proprietary Reverse Mortgages

Private loans offered by mortgage companies, typically for higher-value homes that exceed HECM lending limits.

For homes above HECM limits

May offer higher loan amounts

Private company backing

Fewer government restrictions

Single-Purpose Reverse Mortgages

The least expensive option, offered by some state and local government agencies and nonprofit organizations for specific purposes.

Lowest cost option

Must be used for specific purpose

Limited availability

Income restrictions may apply

Most Popular Choice

HECM loans account for nearly all reverse mortgages due to their federal insurance protection and flexible terms. Our team will help you determine which option best fits your situation.

Key Benefits

Reverse mortgages offer several advantages for seniors looking to access their home equity while maintaining homeownership.

No Monthly Mortgage Payments

Eliminate monthly mortgage payments and use that money for other expenses. The loan is repaid when you no longer live in the home.

Remain in Your Home

Continue living in your home as long as you maintain the property and meet loan obligations like property taxes and insurance.

Non-Recourse Protection

You or your heirs will never owe more than the home's value when the loan becomes due, even if the loan balance exceeds the home's worth.

Flexible Payment Options

Receive funds as a lump sum, monthly payments, line of credit, or combination. You can change payment options during the loan term.

Tax-Free Proceeds

Reverse mortgage proceeds are generally not considered taxable income, allowing you to keep more of the money you receive.

Use Funds for Any Purpose

There are no restrictions on how you use reverse mortgage proceeds - pay off debts, fund healthcare, home improvements, or daily living expenses.

Important Considerations

Reverse mortgages have real costs and trade-offs. Know them before you commit.

Reduces Home Equity

As you receive payments, your home equity decreases and loan balance increases over time. This reduces the inheritance you can leave to heirs.

Ongoing Costs and Fees

You're responsible for property taxes, homeowners insurance, HOA fees, and home maintenance. High upfront costs include origination fees and mortgage insurance.

Interest Accrues Over Time

Interest compounds on the loan balance over time, meaning you owe more as years pass. Current interest rates affect the total cost.

Complex Loan Terms

Reverse mortgages have complex terms and conditions. It's crucial to understand all aspects before signing, including repayment triggers.

Impact on Government Benefits

Large lump sum payments might affect eligibility for need-based government programs like Medicaid or Supplemental Security Income.

Professional Guidance is Essential

Given the complexity and long-term implications of reverse mortgages, it's crucial to work with experienced professionals and complete required counseling to ensure this option aligns with your financial goals.

Eligibility Requirements

To qualify for a reverse mortgage, you must meet specific age, property, and financial requirements established by federal regulations.

Age Requirement

All borrowers and spouses living in the home must be at least 62 years old. The younger spouse's age is used to calculate loan terms.

Minimum age of 62 for all borrowers

Spouse must also meet age requirement

Age affects loan amount calculation

Primary Residence

The home must be your primary residence where you live for the majority of each year. Vacation homes and investment properties don't qualify.

Must be primary residence

Live there majority of the year

Single-family homes qualify

Some condos and manufactured homes eligible

Financial Assessment

Lenders evaluate your ability to pay property taxes, insurance, and maintenance costs. You may need to set aside funds in an escrow account.

Credit and income review

Property tax and insurance capability

May require escrow account

Residual income requirements

HUD Counseling

Complete mandatory counseling with a HUD-approved housing counseling agency to ensure you understand the loan terms and alternatives.

Required HUD counseling session

Learn about loan terms and costs

Explore alternative options

Receive counseling certificate

Ready to Learn More?

Our reverse mortgage specialists can help you understand if you qualify and explore your options.

Get Started Today

Frequently Asked Questions

Get answers to common questions about reverse mortgages and how they work.

Have More Questions?

Our experienced reverse mortgage specialists are here to answer your questions and help you understand your options.

Talk to a Specialist

Browse by City