The 2026 Reverse Mortgage Guide — instant PDF download
Published:
A 21-page, plain-English guide to HECM and proprietary reverse mortgages: who qualifies, how much you can access, what it costs, what you still owe each year, how heirs are protected, and the exact questions to ask before you sign. Written by our licensed team, sourced from HUD/FHA and CFPB materials.
Get your Reverse Mortgage Estimate Summary.
Complete the short estimate form and we send back a full HECM summary: your estimated principal limit, complimentary home value estimate, payoff of any existing mortgage, and estimated proceeds available to you.
- Complimentary home value estimate
- Estimated principal limit for your age
- Existing mortgage payoff included
- Lump sum, line of credit, or monthly options
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
Download the 2026 Reverse Mortgage Guide
21 plain-English pages: who qualifies, what it costs, payout options, ongoing obligations, and the questions to ask before you sign. Free.
What is inside the guide
1. What a reverse mortgage actually is
Plain-language definition, who holds title, and how repayment works.
2. Who qualifies
Age 62+ for HECM, 55+ on certain proprietary programs in FL and CO, property types, and the financial assessment.
3. How much you can access
Principal limit factors, the 2026 lending limit of $1,249,125, payoffs, and the first-year draw rule.
4. Your payout options
Lump sum, line of credit, tenure, term, and combinations — with the growth feature explained.
5. Costs and fees
IMIP, annual MIP, origination, third-party closing costs, and servicing.
6. Your ongoing obligations
Taxes, insurance, HOA dues, maintenance, and occupancy — and what happens if they lapse.
7. LESA set-asides
When a set-aside is required, how it is calculated, and how it affects available proceeds.
8. HUD-approved counseling
What the session covers, what it costs, and how to prepare.
9. HECM vs. proprietary jumbo
Side-by-side comparison of insured and non-insured programs.
10. Reverse mortgage vs. HELOC vs. cash-out
Where each option fits, and alternatives worth considering.
11. Heirs and non-recourse
What your family can do, the 95% rule, and the timelines that matter.
12. HECM for Purchase (H4P)
Buying a home with a reverse mortgage in a single transaction.
13. Common myths, corrected
Nine myths answered with the actual rule.
14. Red flags and scams
How to spot pressure tactics and protect yourself.
15. The step-by-step process
Seven stages with typical timing, plus the documents to gather.
16. Questions to ask before you sign
A checklist to bring to your counseling session.
17. Glossary
Every term you will see on your paperwork.
18. Important disclosures
Brokerage status, program limits, and consumer protections.
Who this guide is for
Homeowners 55 and older weighing whether home equity belongs in their retirement plan, adult children helping a parent evaluate options, and anyone who has been pitched a reverse mortgage and wants an independent explanation before deciding. Bring it to your HUD counseling session and write your answers in the margins.
Simply Approved Mortgages, NMLS #2620881, is a licensed mortgage brokerage — we arrange loans, we do not make them. This guide is educational material only. It is not a loan offer, a commitment to lend, an approval, a Good Faith Estimate, or a Loan Estimate. Any figure or example is illustrative and will differ from your actual terms, which are subject to lender approval, underwriting, appraisal, program guidelines, and applicable law.
Frequently asked questions
- Is the reverse mortgage guide really free?
- Yes. The 2026 Reverse Mortgage Guide is free educational material. We ask for an email address so we can send you the guide and occasional educational updates. You can unsubscribe at any time.
- What is inside the guide?
- Twenty-one plain-English pages covering how a HECM works, who qualifies, how much you can access, payout options, costs and fees, your ongoing obligations, HUD counseling, HECM versus proprietary jumbo programs, reverse mortgage versus HELOC and cash-out refinance, heirs and non-recourse protection, HECM for Purchase, common myths, scam red flags, the step-by-step process, documents to gather, questions to ask, and a glossary.
- Is the guide a loan offer or an approval?
- No. The guide is educational material only. It is not a loan offer, a commitment to lend, an approval, a Good Faith Estimate, or a Loan Estimate. Every figure shown is illustrative. Simply Approved Mortgages, NMLS #2620881, is a licensed mortgage brokerage, not a lender, and all loans are subject to lender approval, underwriting, appraisal, program guidelines, and applicable law.
- Do I have to talk to anyone to get the guide?
- No. The download starts as soon as you submit your email. If you would like a personalized estimate afterward, you can request one, but it is not required.
- Does the guide cover programs for borrowers under 62?
- Yes. The HECM program requires borrowers to be at least 62. The guide also explains proprietary (non-FHA) reverse mortgage programs, which are available to borrowers as young as 55 in Florida and Colorado. Those programs are not FHA-insured and terms vary by investor.
- How current is the information?
- The guide is the 2026 edition and reflects the 2026 FHA HECM lending limit of $1,249,125. Program parameters, fees, minimum ages, and maximum loan amounts change and vary by investor and by state, so anything specific must be confirmed in writing for your file at the time you apply.
- Will the guide tell me exactly how much I qualify for?
- No — the guide explains the factors that drive your Principal Limit (age, home value, expected rate) but does not calculate a personal figure. Use the calculator or request a personalized estimate for numbers specific to your situation.
- Does the guide cover both Florida and Colorado rules?
- Yes. Since Simply Approved Mortgages is licensed only in Florida and Colorado, the guide notes state-specific items relevant to those states, such as homestead considerations in Florida and DORA oversight in Colorado, alongside the federal HECM rules that apply everywhere.
- Is the guide useful if I already have a reverse mortgage?
- Yes — sections on ongoing obligations, the annual occupancy certification, heirs and non-recourse protection, and the glossary are helpful for existing borrowers, not just people applying for the first time.
- Can I share the guide with my adult children?
- Yes, the PDF is yours to keep and share. Many borrowers find it useful to review the guide together with adult children or a trusted family member before making a decision.
- What if I have questions the guide doesn't answer?
- You can request a personalized, no-obligation conversation with a licensed loan officer at Simply Approved Mortgages, or bring your questions to your required HUD-approved counseling session, which is independent of any lender or broker.
- Is the guide available in Spanish?
- Simply Approved Mortgages offers a Spanish-language reverse mortgage guide as a separate resource. Check the Spanish version of this page or ask a loan officer for the link if you prefer to read the material in Spanish.
Keep reading
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.
Your numbers plus the 2026 Reverse Mortgage Guide.
Request your estimate and we include the 21-page plain-English guide: who qualifies at 62+, what a HECM costs, payout options, ongoing obligations, and the questions to ask before you sign.
- 21-page guide, no jargon
- HUD/FHA program rules explained
- Costs and fees broken down
- Questions to ask any loan officer
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Subject to HUD counseling, appraisal, credit and income review, and final lender approval. You remain responsible for property taxes, insurance, and home maintenance.
Estimate summary
- Home value estimate
- $412,000
- Youngest borrower age
- 72
- Estimated principal limit
- $219,400
- Existing mortgage payoff
- $68,000
- Estimated proceeds available
- $151,400
Simply Approved Mortgages • NMLS #2620881 • Equal Housing Opportunity
Keep reading: the next steps most people take
Estimate what you could qualify for in about a minute
Enter a few details about your age, home, and goals. We'll show you an estimated HECM benefit, a complimentary home value estimate, and connect you with a Simply Approved Mortgages reverse mortgage loan officer.
Related reverse mortgage articles, rate updates & HECM guides
New reverse mortgage articles are publishing soon. In the meantime, browse upcoming categories:
Documents 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 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 SmartPay
- 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.cra.xedalink.net (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 receive compensation from these credit services. MyITINCredit is an independent third-party service; pricing, terms, and features are set by that provider.
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