Reverse Mortgage FAQs & Resources: Your Questions Answered

To qualify, you must:

• Be at least 62 years old.
• Own your home with sufficient equity to cover outstanding balances.
• Occupy the home as your primary residence.
• Complete a financial assessment to confirm your ability to meet loan obligations like taxes and insurance.

The amount depends on:

• Your age at closing.
• Your home’s appraised value.
• Outstanding liens or mortgages.
  Interest rates at the time of the loan.

HUD limits the amount you can access in the first year to 60% of the Principal Limit or the total of mandatory obligations plus 10% of the Principal Limit, whichever is greater. Remaining funds become available starting in year two.

You can choose from several payout options:

• Lump Sum: Withdraw up to the first-year limit set by HUD.
• Line of Credit: Access funds as needed over time.
• Monthly Payments: Receive a set amount each month for a specific period or for life.
• Combination: Mix lump sums, monthly payments, and credit lines.

Note: Fixed-rate reverse mortgages only allow for a single lump sum payment.

Costs include:

• Origination Fee: Paid to the lender or broker.
• Mortgage Insurance Premium (MIP): Paid to FHA to insure the loan.
• Appraisal Fee: Determines your home’s value.
• Closing Costs: Title, escrow, and other settlement fees.
• Monthly Servicing Fees (if applicable).

All fees are disclosed upfront on the Good Faith Estimate (GFE). 

Yes. HUD requires all borrowers to complete counseling with an independent HUD-approved counselor. This ensures you understand the loan’s terms and potential impact. The lender cannot proceed without your counseling certificate.

Typically, reverse mortgage proceeds are not considered taxable income, but you should consult your tax advisor to confirm how they apply to your specific situation.

Most fees, like servicing fees, are financed into the loan balance. Upfront costs may include the appraisal and HUD counseling fees (some agencies waive counseling fees). Contact your Mortgage Loan Originator for details.

Access these trusted organizations for additional information or support:

AARP: Free reverse mortgage resources
📞 1-800-209-8085
Consumer Financial Protection Bureau (CFPB): Consumer Lookup
🌐 nmlsconsumeraccess.org
Housing Counseling Clearinghouse
📞 1-800-569-4287
Eldercare Locator: Local resources for older adults
🌐 eldercare.gov
📞 1-800-677-1116
Federal Trade Commission (FTC): Report fraud
🌐 ftc.gov
📞 1-877-FTC-HELP (1-877-382-4357)
National Council for Aging Care
🌐 aging.com
📞 1-877-664-6140