Who qualifies for a reverse mortgage?

To qualify for an FHA HECM reverse mortgage you must: be 62 or older, own your home outright or have significant equity, live in the home as your primary residence, be current on property taxes and homeowners insurance, and complete HUD-approved reverse mortgage counseling.

How much can I get from a reverse mortgage?

The amount depends on your age, home value (up to the FHA lending limit of $1,089,300 in 2026), and current interest rates. Generally, the older you are and the more equity you have, the more you can borrow. At age 70 with a $400,000 home and no mortgage, you might receive $150,000-$190,000.

Do you have to repay a reverse mortgage?

A reverse mortgage becomes due when you sell the home, move out permanently, or pass away. Your heirs can repay the loan and keep the home, or sell the home and keep any remaining equity after the loan is paid off. You never owe more than the home is worth (non-recourse protection).

What are the downsides of a reverse mortgage?

Reverse mortgage downsides include: high upfront costs (2% MIP + origination fee up to $6,000), interest compounds over time reducing equity, you must maintain the home and pay property taxes and insurance, and heirs inherit less equity. They are best suited for homeowners who plan to stay in the home long-term and need supplemental income.

Free Reverse Mortgage Calculator 2026

Estimate how much you could receive from a HECM reverse mortgage.
See lump sum, line of credit, and monthly payment options side-by-side.

FHA HECM PLF tables · 2026 lending limit $1,089,300 · All disbursement options

Your Information

Home Value *

FHA HECM is capped at $1,089,300 (2026 national limit). Jumbo reverse mortgages available for higher-value homes.

Age of Youngest Borrower *

Must be 62 or older. If spouses, use the younger age. Older borrower = more proceeds.

Existing Mortgage Balance

Existing mortgage must be paid off at closing from proceeds. Enter 0 if home is owned free and clear.

Expected Interest Rate

Current HECM expected rate (CMT + lender margin). Affects PLF factor. Estimate: 6.5–7.5% in 2026.

How a Reverse Mortgage Works (2026)

A Home Equity Conversion Mortgage (HECM) lets homeowners 62+ borrow against their home equity without monthly payments. The loan balance grows over time and is repaid when you sell, move, or pass away.

How Much Can You Borrow?

The FHA uses a Principal Limit Factor (PLF) table based on your age and the expected interest rate. The PLF multiplied by your home value (up to $1,089,300) gives your gross principal limit. Generally: age 62 = ~38% PLF, age 70 = ~47%, age 80 = ~57%.

Upfront Costs

MIP (Mortgage Insurance Premium): 2% of the maximum claim amount upfront, plus 0.5%/year ongoing
Origination fee: Up to $6,000 (capped by FHA)
Third-party costs: Appraisal, title, recording fees (~$2,000–3,000)

Line of Credit Growth

An unused line of credit grows at the loan interest rate + 0.5% MIP. This means unused equity compounds in your favor — the longer you wait to draw, the more is available.

FAQ

Reverse mortgage questions answered

What is the FHA HECM lending limit in 2026?

The FHA HECM national lending limit is $1,089,300 in 2026. If your home is worth more, only $1,089,300 is used in the PLF calculation. Proprietary (jumbo) reverse mortgages are available for higher-value homes from private lenders, but they are not FHA-insured.

What happens to my reverse mortgage when I die?

Your heirs have 30–60 days (extendable to 12 months) to either: (1) pay off the reverse mortgage and keep the home, (2) sell the home and keep remaining equity after repayment, or (3) deed the home to the lender. Reverse mortgages are non-recourse — your estate never owes more than the home is worth.

Can I lose my home with a reverse mortgage?

Yes, if you fail to maintain the home, fall behind on property taxes, or let homeowners insurance lapse. The lender can call the loan due. This is the most common reason for reverse mortgage foreclosure. Set up escrow for taxes and insurance to protect yourself.

Is reverse mortgage income taxable?

No. Reverse mortgage proceeds are loan advances, not income, so they are not subject to income tax. They also do not affect Social Security or Medicare benefits. However, large lump sum disbursements can affect Medicaid eligibility if not spent in the same month received.