Reverse Mortgage: Unlock Your Home Equity in Retirement
Last updated: · Reviewed by Simply Approved Mortgages (NMLS #2620881)
If you're age 62 or older, a reverse mortgage may allow you to convert a portion of your home equity into loan proceeds while remaining in your home. In most cases, no monthly principal and interest mortgage payments are required as long as you continue to meet your loan obligations. Get a quick estimate below, then speak with a reverse mortgage loan officer at Simply Approved Mortgages.
Important: Borrowers remain responsible for property taxes, homeowners insurance, home maintenance, and other loan obligations. Reverse mortgage proceeds are generally not considered taxable income under current federal tax law, but you should consult your tax advisor regarding your individual circumstances. This is not a commitment to lend. Eligibility and loan terms are subject to approval.
2026 HUD lending limit: $1,249,125 (HUD Mortgagee Letters) · Provided by Simply Approved Mortgages (NMLS #2620881), verify on NMLS
What could you qualify for?
Includes a complimentary home value estimate
Lenders set this weekly from the 10-yr CMT index plus their margin. Default rate shown for illustration only — actual rates vary by lender, market conditions, and the date your loan is locked.
Your personalized HECM estimate is ready. Enter a few contact details and a licensed Simply Approved Mortgages loan officer will share your numbers and walk you through your options.
What Is a Reverse Mortgage?
A reverse mortgage is a federally regulated home loan available to homeowners age 62 and older that converts a portion of your home equity into loan proceeds — without requiring you to sell the home or take on a monthly principal and interest payment. The most common program is the FHA-insured Home Equity Conversion Mortgage (HECM), the only reverse mortgage backed by the U.S. Federal Housing Administration.
You keep the title to your home, the lender places a lien for the loan balance, and you can receive proceeds as a lump sum, growing line of credit, monthly tenure or term payments, or any combination. The loan becomes due when the last borrower permanently leaves the home, as long as the borrower keeps up with property taxes, homeowners insurance, and basic upkeep.
Read the full guideStay in your home
Title stays in your name. You can live there for life as your principal residence.
No monthly principal & interest payment
You can use proceeds to pay off any existing mortgage first — eliminating that monthly bill as long as you meet your loan obligations.
Federally insured
HECMs are insured by FHA and regulated by HUD and the CFPB.
Non-recourse
You or your heirs will never owe more than the home is worth when the loan is repaid.
How a Reverse Mortgage Works
A HECM reverse mortgage typically closes in 30–45 days and follows HUD-defined steps. You stay on title the entire time. For eligible refinance transactions, federal Truth-in-Lending gives you a 3-business-day right of rescission after closing before funds disburse (HECM for Purchase transactions do not carry this right).
- 01
Confirm eligibility
The youngest borrower must be at least 62 for an FHA HECM. Some proprietary/jumbo programs may accept younger ages, subject to lender rules and state availability. The home must be your primary residence and meet FHA property standards.
- 02
Complete HUD counseling
Speak with an independent HUD-approved reverse mortgage counselor. The session is required, typically takes 60–90 minutes, and is valid for 180 days.
- 03
Apply & get an appraisal
Submit an application with Simply Approved Mortgages. An FHA-approved appraiser establishes the home's value, which sets your principal limit.
- 04
Underwriting & financial assessment
The lender confirms you can keep up with property taxes, homeowners insurance, and basic upkeep — HUD's financial assessment rule.
- 05
Close & receive proceeds
For eligible refinance transactions, federal Truth-in-Lending gives you a 3-business-day right of rescission after closing before funds disburse (HECM for Purchase transactions do not carry this right). Any existing mortgage is paid off first. Remaining proceeds go to you as lump sum, line of credit, monthly advances, or a mix.
Four reverse mortgage programs in 2026 — and which one fits your situation
HECM
The standard FHA-insured reverse mortgage. 2026 lending limit of $1,249,125. Adjustable line of credit, fixed lump sum, term, or tenure payouts.
Read about HECM Buy a homeHECM for Purchase
Buy your next primary residence with a reverse mortgage in a single closing. Downsize, relocate, or right-size with no required monthly P&I payment.
Read about HECM for Purchase New for 2026Jumbo Reverse Mortgage
Proprietary (jumbo) reverse mortgage programs for high-value homes above the FHA HECM lending limit. These are private, non-FHA-insured products; borrowing limits, minimum age, features, and state availability vary by lender and product.
Read about Jumbo Reverse Mortgage Existing HECMHECM Refinance
Refinance an existing HECM when home values rise or rates fall. Subject to HUD's anti-churning benefit test and any lender seasoning overlays.
Read about HECM RefinanceWhy home equity matters more than ever in 2026
U.S. homeowners age 62 and older collectively hold a record level of home equity — for most households it is the single largest asset heading into retirement. At the same time, the 2026 HECM lending limit changed +3.25% year over year, which widens the gap between what a HECM and a jumbo reverse mortgage can deliver on high-value homes.
Live source: HUD news release HUD-25-145 / Mortgagee Letter 2025-22 · auto-refreshed August 13, 2026.
- $1,249,125
- 2026 HECM lending limit (FHA)
- +3.25%
- YoY change vs. $1,209,750 in 2025
- 62+
- Minimum age for an FHA HECM (some proprietary/jumbo programs may accept younger ages, subject to lender and state rules)
- $4,000,000
- Top jumbo reverse mortgage loan amount in 2026
Simply Approved Mortgages has a Reverse Mortgage Division
Simply Approved Mortgages has a Reverse Mortgage Division. Our loan officers shop multiple HUD-approved HECM lenders and compare offers side by side, so homeowners age 62 and older can see real options for paying off an existing mortgage, opening a growing line of credit, or supporting retirement cash flow.
Every estimate includes a plain-English walkthrough of independent HUD-approved counseling, principal limits, and total costs. Our reverse mortgage loan officers focus on helping homeowners age 62 and older understand their options, and we help determine whether a HECM is appropriate based on your goals and financial situation.
Estimate, compare, and decide on your reverse mortgage — at your own pace.
Reverse mortgage calculator
Estimate your principal limit and net available cash from your age, home value, and existing mortgage balance.
Open toolEligibility checker
Walk through the federal HECM requirements — age, residency, property type, financial assessment — and see where you stand.
Open toolCosts & fees breakdown
See every line item: origination, initial MIP, third-party closing costs, servicing, and ongoing MIP.
Open toolIs a reverse mortgage right for everyone?
No — a reverse mortgage isn't the best fit for every homeowner. If you plan to move within a few years, have a younger spouse who can't be on the loan and isn't documented as an Eligible Non-Borrowing Spouse, or have lower-cost options that meet your goals, an alternative may serve you better. You may also want to consider:
HELOC
A home equity line of credit can be a fit if you have steady income, strong credit, and want monthly payment flexibility.
Home equity loan
A fixed second mortgage with predictable payments — useful for a one-time expense when income supports the payment.
Cash-out refinance
Refinancing your existing mortgage for more than you owe can work when rates and payments still fit your budget.
Downsizing
Selling and moving to a smaller or less expensive home can unlock equity without taking on new debt.
Common Reverse Mortgage Myths
Reverse mortgages are one of the most misunderstood loan products in America. Here are the questions we hear most often — and what HUD's actual HECM rules say.
The bank owns my home
False. You keep the title to your home. The lender places a lien to secure the loan, just like a traditional mortgage.
My children will inherit the debt
False. HECMs are non-recourse. Heirs are never required to pay more than the home is worth, and FHA insurance covers any shortfall.
I'll lose my Social Security or Medicare
False. Reverse mortgage proceeds are loan proceeds, not income, and don't affect Social Security or Medicare benefits. Means-tested programs like Medicaid or SSI can be affected by how you hold the funds — ask your benefits counselor.
I can't move or sell my home
False. You can sell at any time. The loan is repaid from the sale proceeds, and any remaining equity belongs to you.
Reverse mortgages are only for people in financial trouble
False. Many borrowers use a HECM line of credit strategically in retirement to protect investments during down markets, delay Social Security, or fund home improvements.
There are no monthly payments at all (property taxes, insurance, and maintenance still required)
Partly true. There's no required monthly principal and interest payment, but you must continue paying property taxes, homeowners insurance, HOA dues, and basic upkeep.
Deep, sourced reverse mortgage guides — written for homeowners, not for lenders.
HECM, explained
The federally insured reverse mortgage program — how PLFs, MIP, and payment options actually work.
ReadPros & cons
A balanced view: who benefits most, who should look elsewhere, and what the trade-offs look like over time.
ReadAlternatives
Home equity loans, HELOCs, downsizing, and refinancing — when each beats a reverse mortgage.
ReadFAQ
Heirs, taxes, Medicare, surviving spouse rules, and the questions readers ask most often.
ReadDocuments required for a reverse mortgage
When you apply for a HECM reverse mortgage, your lender will request documents that verify your identity, property ownership, income, and assets. Gathering these in advance can speed up your estimate and application.
- Government-issued photo ID
Current driver’s license, passport, or state-issued ID.
- Social Security number verification
Social Security card or award letter showing your SSN.
- Current mortgage statement
Most recent statement if refinancing; purchase agreement if buying.
- Homeowner’s insurance declarations page
Shows current coverage, premium, and mortgagee clause.
- Property tax statement or receipt
Latest county tax bill showing taxes are current or payment history.
- Bank statements
Last 1-2 months to verify closing funds and residual reserves.
- Investment or retirement accounts
Recent statements for IRA, 401(k), brokerage, or other liquid assets.
- HOA or condo information
Homeowners association statement or condo questionnaire if applicable.
- Trust or title vesting documents
Required when the home is held in a living trust or entity.
- Flood insurance declaration
Current policy if the property is in a flood zone.
- HUD-approved counseling certificate
Required before loan application. Obtained from a HUD-approved reverse mortgage counselor.
Why we pull credit for your reverse mortgage pre-approval
HUD requires a Financial Assessment for every HECM reverse mortgage, including a review of your credit history and record of paying property taxes and homeowners insurance. As part of our standard broker/lender pre-approval process, we typically order a tri-merge credit report through a HUD-approved credit vendor to verify identity, review obligations, and confirm that you can continue paying property taxes, homeowners insurance, and maintenance after closing. Whether a tri-merge is required, and any fees, are set by the wholesale lender and credit vendor — not by HUD as a stand-alone rule.
Pay for your credit report — SmartPay
Simply Approved Mortgages uses MeridianLink SmartPay to securely collect the credit report fee for your reverse mortgage pre-approval. Payment goes directly to the credit vendor — not to us — and unlocks a tri-merge credit report (Equifax, Experian, TransUnion) that your loan officer uses to complete the broker/lender pre-approval file for HUD's Financial Assessment.
- Secure, PCI-compliant checkout hosted by MeridianLink
- Standard step in our broker/lender pre-approval process (not a HUD stand-alone requirement)
- Optional — you can decline; your loan officer will explain any impact on your options
You'll be redirected to cic.meridianlink.com (SmartPay).
Check your credit first — $1 trial at MyITINCredit
Before you apply, it's smart to know exactly where your credit stands. MyITINCredit offers a $1 trial for 15 days that includes all three credit reports and scores (Equifax, Experian, TransUnion), plus ongoing credit monitoring so you can catch errors, dispute inaccuracies, and watch for identity theft.
- See all 3 bureau reports & scores before your lender does
- Ongoing monitoring alerts you to new accounts or score changes
- Fix errors early — cleaner credit can widen your reverse mortgage options
You'll be redirected to myitincredit.com. Third-party service — terms apply.
Credit report fees are paid directly to the credit vendor. Simply Approved Mortgages (NMLS #2620881) does not profit from the credit pull. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.
Related reverse mortgage articles, rate updates & HECM guides
New reverse mortgage articles are publishing soon. In the meantime, browse upcoming categories:
Reverse mortgage FAQ
- What is the minimum age for a reverse mortgage?
- The youngest borrower on title must be at least 62 for an FHA-insured HECM. Some proprietary/jumbo programs may accept younger ages, subject to lender rules and state availability.
- Do I still own my home with a reverse mortgage?
- Yes. Title stays in your name. The lender records a lien against the property, the same way a traditional mortgage lender would.
- Will I have a monthly mortgage payment?
- In most cases, no monthly principal and interest payment is required as long as you continue to pay property taxes, homeowners insurance, and maintain the home.
- Are reverse mortgage loan proceeds taxed as income?
- Generally no — the IRS treats reverse mortgage proceeds as loan advances, not income. Consult your tax advisor about your individual situation.
- Is Simply Approved Mortgages a lender?
- No. Simply Approved Mortgages is a licensed mortgage brokerage (NMLS #2620881) that shops multiple HUD-approved HECM lenders on your behalf.
See How Much Home Equity You Could Access in 2026
Get a free, no-obligation reverse mortgage estimate from a Simply Approved Mortgages loan officer. We'll estimate your available home equity, explain your HECM options, and answer your questions today.