Updated
On this page
- Learn the basics about reverse mortgages
- What a reverse mortgage broker does
- Reverse mortgage requirements
- Condos and insurance
- HECM vs. jumbo vs. HELOC vs. HEI
- What a reverse mortgage costs
- Your home and heirs with a reverse mortgage
- Pros and cons of a reverse mortgage
- What’s my home worth?
- Reverse mortgage calculator
- Free reverse mortgage guide & tools
- Aging in place, state by state
- How reverse mortgage rules differ by state
- Reverse mortgage FAQs
- 1 minute video about reverse mortgages
Here is the difference a reverse mortgage broker makes. Instead of selling one company’s product, I shop multiple lenders and programs, quote them side by side, and tell you plainly when a reverse mortgage does not pencil. So start wherever you like below, and reach out when you want a real conversation.
Learn about reverse mortgages
New to this? Start with the plain-English basics, then dig into whatever you need. Each guide below answers a single question in full.
What a reverse mortgage broker actually does
A reverse mortgage is a big decision, so it helps to work with someone whose job is to compare, not to sell. As your reverse mortgage broker, I am licensed to arrange loans through multiple lenders. In practice, that means I can weigh a HECM against a proprietary program on your numbers rather than steering you to one. I am paid the same either way. In practice, that keeps the advice honest, and it is why I would rather hand you the research than a brochure.
Reverse mortgage requirements: do you qualify?
Who qualifies for a reverse mortgage? You need to be age 62 or older for a HECM (age 55+ for many proprietary programs; 60+ in Washington, 62+ in Texas), own the home as your primary residence, and hold enough equity, usually around 50%. There is no income or credit-score minimum, but a financial assessment confirms you can keep up the taxes and insurance.
- Age. 62 or older for the FHA-insured HECM. Many proprietary and jumbo programs start at age 55. Washington sets that floor at 60 and Texas at 62.
- Primary residence. It has to be the home you live in for most of the year, not a rental or second home.
- Enough equity. Usually around 50% or more. Any existing mortgage is paid off first with the proceeds, and you keep the rest.
- Eligible property. Single-family, a 2 to 4 unit building you live in, an FHA-approved condo, or many manufactured homes.
- A financial assessment. There is no income or credit-score minimum, but the lender confirms you can keep up property taxes, insurance, and upkeep. If that is a concern, a set-aside called a LESA can cover it from the loan.
- HUD counseling. A session with a HUD-approved counselor is required before you apply, so you go in with clear eyes.
Those are the basics. The full breakdown, including property rules and the financial assessment, lives on my reverse mortgage requirements guide. Not sure if you clear the bar? Call or text me at 720-449-6622 and we will pencil it out in a few minutes.
Condos and insurance: two things to check early
Do condos or insurance change a reverse mortgage? They can. On a condo, the project usually has to be FHA-approved for a HECM, and either way your homeowners insurance has to stay in force for the life of the loan. Both are manageable, but they are worth checking early, especially in condo-heavy, high-insurance states.
Reverse mortgages on a condo. For an FHA HECM, the condo project generally needs to be on FHA’s approved list. If it is not, we can often pursue single-unit approval for your unit, or use a proprietary reverse mortgage, which does not require FHA approval. Approval weighs owner-occupancy, reserves, delinquencies, litigation, and any planned special assessments. Where state condo-safety laws have driven new reserve studies and special assessments, this deserves a closer look, and my Florida guide is a good example of how it plays out locally.
Keeping your insurance in force. A reverse mortgage has no monthly mortgage payment, but you still have to keep your homeowners insurance, and flood insurance where it is required, paid and current. Letting it lapse is one of the few ways a reverse mortgage can go into default. Where premiums have jumped, budget for it up front, and if cash flow is tight, a set-aside from the loan can cover taxes and insurance for you. The state guides cover the local programs and numbers in more detail.
Reverse mortgage options: HECM vs. jumbo vs. HELOC vs. HEI
HECM vs. jumbo vs. HELOC vs. HEI: what’s the difference? A HECM is the FHA-insured reverse mortgage, capped in 2026 at $1,249,125 and requiring no monthly payment. A proprietary or “jumbo” reverse mortgage serves higher-value homes with no FHA cap, with a minimum age that varies by state and program. A HELOC is not a reverse mortgage: it requires monthly payments and full income and credit qualifying. A home equity investment (HEI) is not a loan at all: you take cash now in exchange for a share of your home’s future value, with no monthly payment and no age requirement. Here is how the four compare.
| Feature | HECM (FHA reverse) | Proprietary / jumbo reverse | HELOC | Home Equity Investment (HEI) |
|---|---|---|---|---|
| Minimum age | 62 | Varies by state and program | 18 | None |
| Home value it’s built for | Up to the 2026 FHA limit, $1,249,125 | High-value homes, often $1M, $4M+ | Any value, based on your equity | Any value, based on your equity |
| Monthly mortgage payment | None required | None required | Required | None required |
| When it must be repaid | When the last borrower sells, moves out, or passes away | When the last borrower sells, moves out, or passes away | Monthly, then the balance by the end of the term | A fixed term, often 10 to 30 years, settled in one lump sum, usually by selling or refinancing |
| What you ultimately repay | The amount you used, plus interest and fees | The amount you used, plus interest and fees | The amount you borrowed, plus interest | Your cash advance plus a share of the home’s appreciation, which can cost more than a loan if values rise |
| How you qualify | Financial assessment (no income/credit minimums) | Financial assessment | Full income & credit underwriting | Credit & equity (no income test) |
| FHA-insured | Yes | No | No | No |
| Ongoing mortgage insurance | Yes (2% upfront + 0.5%/yr) | No | No | No |
| Non-recourse (never owe more than the home is worth) | Yes | Usually yes | No | Not a loan, you repay a share of the home’s value |
| HUD counseling required | Yes | Yes | No | No |
| Lender can freeze or cut the credit line | No | Varies by program | Yes | N/A (lump sum) |
| Best fit | Homes at or under the FHA limit | High-value homes above the FHA cap | Those who can make monthly payments / short-term needs | Homeowners (often under 62) trading a share of future appreciation for cash now |
What a reverse mortgage costs
What does a reverse mortgage cost? A reverse mortgage has real closing costs, and I show them plainly. Most can be rolled into the loan, so you often pay little out of pocket, and the biggest line item is usually FHA mortgage insurance, not my fee.
| Cost | Typical amount |
|---|---|
| Origination fee | Capped at $6,000, often less |
| Upfront FHA mortgage insurance | 2% of the home’s value, up to the $1,249,125 limit |
| Annual FHA mortgage insurance | 0.5% of the loan balance per year |
| HUD counseling | About $125 to $200, sometimes free |
| Appraisal, title, and recording | A few thousand, varies by area |
The origination fee is capped by FHA rules, and on a lot of files it comes in lower. The cost that surprises people is the FHA mortgage insurance: 2% of the home’s value up front, then 0.5% of the balance every year. That is the price of the government guarantee that makes the loan non-recourse and lets a line of credit grow. A proprietary or jumbo reverse mortgage (age 55+ on many programs; 60+ in Washington, 62+ in Texas) skips the FHA insurance but prices that risk its own way, so the right move is to quote both side by side and see which one pencils.
For example, on a $600,000 home a HECM might carry $6,000 in origination, roughly $12,000 in upfront FHA insurance, a few thousand in third-party fees, and the counseling fee, with most of it financed into the loan rather than paid at the table. The full line-by-line breakdown lives on my reverse mortgage costs guide. It is worth a conversation before you assume the costs rule it out.
Your home and your heirs
What happens to your home and your heirs with a reverse mortgage? You keep the title and you keep ownership. Because a HECM is non-recourse, you and your heirs can never owe more than the home is worth when the loan is repaid.
The loan comes due when the last borrower passes away or permanently moves out, for example into assisted living for more than 12 months. At that point your heirs have three paths, and they get roughly 6 months to choose, with extensions available up to 12:
- Sell the home. The loan is paid from the sale, and your heirs keep every dollar of remaining equity.
- Keep it. They pay off the balance, usually by refinancing. If the balance has grown past the home’s value, FHA lets them buy it for 95% of the appraised value, so a market dip never hands them a bill.
- Walk away. Non-recourse means they can hand back the keys and owe nothing, even if the loan is larger than the home is worth.
A younger husband or wife who is not on the loan (a non-borrowing spouse) has federal protections to stay in the home after the borrower passes, as long as the property charges are kept current.
The thing people miss: a reverse mortgage does not take your home. You still own it, you still leave it to your kids, and they still choose what to do with it. Send them my way if they want to walk through the options.
Reverse mortgage pros and cons
What are the pros and cons of a reverse mortgage? The upside is cash flow with no monthly mortgage payment and a credit line that can grow. The trade-offs are real too: the balance grows over time, and you still have to keep up taxes, insurance, and upkeep. It is a good fit for some people and the wrong move for others, so the honest answer depends on your plan.
Pros
- No required monthly mortgage payment, which frees up cash flow.
- You keep the title and stay the owner of your home.
- Non-recourse: you and your heirs never owe more than the home is worth.
- A line of credit can grow over time, giving you more to draw later.
- The money is loan proceeds, so it is not taxable income.
- Flexible payout: lump sum, line of credit, monthly income, or a mix.
Cons
- The loan balance grows over time and reduces the equity you leave behind.
- You must keep paying property taxes and insurance and maintain the home, or the loan can be called due.
- Upfront costs, mainly FHA mortgage insurance, run higher than a HELOC.
- It can affect need-based benefits like Medicaid and SSI (not Social Security or Medicare).
- It is a poor fit if you expect to move within a few years.
A reverse mortgage is a tool, not a trap. If you want to separate the myths from the facts, or think through whether it fits your situation, start with is a reverse mortgage right for me, and then we can run your real numbers together.
What is your home worth today?
Before you dive in, it helps to know your number. So see your estimated value and how much equity you have to work with, free and with no obligation.
Reverse Mortgage Calculator
Let’s calculate how much equity you can unlock.
A reverse mortgage is a loan. The balance grows over time and is repaid when the last borrower leaves the home. You keep the title, and you remain responsible for property taxes, homeowners insurance, and upkeep.
Free tools and a guide
Two more things, both free and both yours to keep. First, my complete guide, and second, a quick scorecard to see whether a home is one you could grow old in.
Is a reverse mortgage right for you?
Answer five short questions and this guide points you to the resource that fits. It starts with your state, because the minimum age differs: 60 in Washington, 62 in Texas, and 55 in Colorado, Florida, and Michigan. This is general guidance for learning, not an approval or a quote, and nothing you tap is stored.
One situation that comes up more than people expect is divorce in retirement. If the house is on the table, here is how a reverse mortgage can help you keep it or buy your next home.
Aging in place, state by state
Where is the best place to age in place? Usually it is the home you are already in. What changes from state to state is the tax breaks for seniors, the cost of living, and the climate. For a lot of homeowners, a reverse mortgage is what makes staying put affordable. Here is what stands out in each state I serve.
- Washington: a real senior property-tax exemption, and a climate that splits the state, dry and sunny east of the Cascades, milder and greener west. All 39 counties are mapped on the hub.
- Colorado: retirement income is taxed lightly, the senior homestead exemption survives a reverse mortgage, and the Front Range pairs city services with the mountains. County detail is on the hub.
- Texas: no state income tax and some of the strongest homestead protections in the country, though property tax rates run high until the senior exemptions and the 65-plus tax freeze kick in.
- Florida: no state income tax and the Save Our Homes cap keep costs predictable, but homeowners insurance is the real budget line, and condos carry their own rules. The hub covers all of it.
- Michigan: Proposal A caps how fast your taxable value can climb, the 2026 retirement-tax rollback helps, and home prices stay within reach. The hub has the county picture.
How reverse mortgage rules differ by state
Do reverse mortgage rules change from state to state? The federal HECM rules are the same everywhere, but state law decides how a reverse mortgage touches your property taxes, your homestead protections, and your closing paperwork. Here is the one thing that trips people up in each state I serve, with a link to the full rundown.
| State | What is different here |
|---|---|
| Washington | Your senior property tax exemption is safe, but the separate senior tax deferral is not compatible with a HECM. Recent 2025 and 2026 changes matter. |
| Colorado | A reverse mortgage keeps your senior property tax exemption, but you cannot use the state property tax deferral at the same time. |
| Texas | The only state that governs reverse mortgages in its constitution, with extra rules including a required 12-day notice before closing. |
| Florida | A reverse mortgage does not cost you the homestead exemption and does not reset your Save Our Homes 3% assessment cap. |
| Michigan | A reverse mortgage does not uncap your taxable value under Proposal A, because you keep ownership and there is no transfer. |
Minimum age by state
Everyone needs to be at least 62 for the government-insured HECM. The minimum for a proprietary jumbo reverse mortgage is set by state law, so it varies:
| State | HECM (FHA reverse) | Proprietary / jumbo |
|---|---|---|
| Washington | 62 | 60 |
| Colorado | 62 | 55 |
| Texas | 62 | 62 |
| Florida | 62 | 55 |
| Michigan | 62 | 55 |
Washington sets a 60 floor (WAC 208-620-820) and Texas requires 62 for every reverse mortgage (state constitution). Colorado, Florida, and Michigan follow the program minimum of 55.
These are the highlights, not the whole story. Each state page walks through the property tax programs, the counseling requirement, and the local numbers in full. Pick your state above, or call me at 720-449-6622 and we will talk through how it works where you live.
Authoritative sources
From the regulators: the CFPB reverse mortgage guide, HUD’s HECM program, and the FTC. For the full picture, browse our resource library and the FAQ.
Frequently asked questions
Do I still own my home with a reverse mortgage?
Yes. You keep the title and you stay the owner, same as with any mortgage. The lender has a lien, not ownership. You can sell anytime, leave the home to your kids, or pay the loan off early with no penalty. You keep living there as long as it is your primary residence and you keep up the taxes, insurance, and upkeep. The idea that the bank takes your home is the myth I bust most often.
What is the minimum age for a reverse mortgage?
Age 62 is the minimum for a government-insured HECM, the most common reverse mortgage. Some proprietary and jumbo programs start at age 55, though Washington sets that floor at 60 and Texas at 62. The older you are, the more of your equity you can access, because the math is built around life expectancy. If you are close to the line, it is worth quoting both a HECM and a proprietary program side by side.
Do I have to make monthly mortgage payments?
No. That is the whole point: there is no required monthly mortgage payment, and the balance grows over time instead of shrinking. You still pay your property taxes and homeowners insurance and keep the home maintained. Miss those and the loan can be called due, so I make sure that part is clear before you sign. Here is how it works in plain English.
How much money can I get from a reverse mortgage?
It comes down to three things: the age of the youngest borrower, your home’s value up to the 2026 FHA limit of $1,249,125, and current interest rates. Older borrowers and lower rates free up more. As a rough idea, many borrowers in their 70s can access 40 to 60 percent of their home’s value. The only way to know your number is to run it on the calculator.
Do I need to own my home free and clear to qualify?
No. You can still have a mortgage or a HELOC. A common reason people do this is to wipe out an existing monthly payment. The reverse mortgage pays off what you owe first, and you keep the rest as a lump sum, a line of credit, or monthly income. You do need enough equity, usually around 50 percent, to make it work. See the full requirements.
Will a reverse mortgage affect my Social Security or Medicare?
No. Social Security and Medicare are not income-based, so a reverse mortgage does not touch them, because the money is loan proceeds, not income. Need-based programs like Medicaid and SSI are different, since they look at the cash in your accounts. If those apply to you, we plan the draw around them and I will point you to a benefits specialist.
Are reverse mortgage funds taxable?
No. The money is a loan, not income, so the IRS does not tax it and it will not push you into a higher bracket. That is one reason a growing line of credit can be a smart retirement tool. I am not a tax advisor though, so loop in your CPA on the specifics for your situation.
Can I lose my home with a reverse mortgage?
Only the same way you could with any mortgage: by not paying your property taxes and homeowners insurance, letting the home fall into disrepair, or moving out permanently. Keep those current and live there, and you cannot be forced out, even if the balance grows past the home’s value. HUD counseling walks through all of this before you commit.
What does a reverse mortgage broker do?
In short, a reverse mortgage broker is licensed to shop multiple lenders and programs for you, rather than selling one company’s product. As your broker, I compare HECM and proprietary options and quote them side by side. Still, I will tell you honestly when a reverse mortgage does not fit. I am paid the same either way, so the advice stays straight.
How do I find a good broker?
First, look for a licensed broker with an NMLS number, real reviews, and a habit of explaining trade-offs rather than pushing. It also helps to work with someone who sends you to independent counseling and hands you research, not just a sales sheet.
What states do you serve?
I am licensed in Washington, Colorado, Texas, Florida, and Michigan. So choose your state above for local help, or just call and we will talk it through.
Is a reverse mortgage right for me?
It depends on your age, how long you will stay in the home, your goal, and your equity. Try the quick is-it-right-for-me guide, then we can run your real numbers together.
Reverse mortgages, in one minute
Here is the short version. First, the basics. A reverse mortgage lets homeowners 55+ (60+ in Washington, 62+ in Texas) turn home equity into cash with no required monthly mortgage payment. You keep the title. Then you repay the balance later, usually when you sell or leave the home, out of the home’s value. Because a HECM is non-recourse, you or your heirs never owe more than the home is worth. Still, you do pay property taxes, insurance, and upkeep. For the full walkthrough, see how it works and the costs.
About Christopher Gibson, your reverse mortgage broker
I am Christopher Gibson, an independent reverse mortgage broker with C2 Financial Corporation (NMLS #1910430), licensed across Washington, Colorado, Texas, Florida, and Michigan. My job is to help you decide honestly, even when the answer is no. Call or text 720-449-6622 and we will run your real numbers, same day, no pressure.