Access your equity, keep your home.
For homeowners 62 and older. This page covers the HECM, the FHA-insured reverse mortgage that makes up the large majority of these loans. The outdated reputation stops people from even asking.
It is not right for everyone. I will tell you if it is not right for you.
What this is, and what it costs you
Almost every reverse mortgage written today is a Home Equity Conversion Mortgage, or HECM, which is insured by FHA. That is what this page describes. Some lenders also offer proprietary reverse mortgages with their own terms, and those can differ, so confirm which product you are actually being shown.
The core idea is straightforward. If you are 62 or older with significant equity, a HECM converts part of that equity into funds without a monthly mortgage payment and without selling. You keep the title and you keep living there, for as long as the home remains your principal residence and you keep property taxes and homeowners insurance current.
What deserves equal billing is the cost. The balance grows over time rather than shrinking, which reduces the equity that would otherwise pass to your heirs. And the obligations are real: the CFPB is blunt that if you do not meet them, you could lose your home to foreclosure. Anyone who describes this as free money is not being straight with you.
Where it genuinely helps
No monthly mortgage payment
The defining feature. For a household on fixed income, removing a mortgage payment can change the monthly picture completely.
Stay in the home
The home must remain your principal residence, but within that you can stay indefinitely. When the real alternative on the table is selling a home you want to stay in, that comparison deserves an honest look.
Pay off an existing mortgage
Proceeds are commonly used to retire a current mortgage, which is often where the monthly relief actually comes from.
Flexible ways to receive funds
Depending on the program, funds may be available as a lump sum, monthly payments, a line of credit, or a combination.
You keep the title
A persistent myth is that the bank takes your house. You remain the owner, on title, with the loan secured against the property.
Independent counseling is required
Before a HECM can proceed you must complete counseling with a HUD-approved counselor who does not work for the lender. That is a genuine protection, and you are meant to be able to walk away after it.
The honest downsides
Every one of these is a reason someone should say no. You should hear them from me rather than from a family member afterward.
It reduces what you leave behind
The balance grows over time rather than shrinking, so there is generally less equity remaining for heirs. If leaving the home free and clear is a priority, this conflicts with it directly.
Taxes, insurance, and upkeep remain yours
This is the most important item on the page. You must pay property taxes and homeowners insurance on time and keep the home in good repair. The CFPB states plainly that if you do not meet these requirements, you could lose your home to foreclosure.
A long stay in care can trigger repayment
The home has to remain your principal residence. Per the CFPB, if you are away for more than 12 consecutive months in a hospital, rehabilitation center, nursing home, or assisted living facility and no co-borrower or eligible non-borrowing spouse is living there, the home is no longer your principal residence and the loan must be repaid. If a move into care is likely soon, this is probably the wrong product.
Costs are real
Upfront and ongoing costs, including insurance premiums on government-insured versions, are not trivial. Over a short period they are difficult to justify.
How this goes
Talk it through, family included
I encourage having adult children in the conversation. Most family friction around these comes from surprise, not from the loan itself.
Compare against the alternatives
Downsizing, a HELOC, a conventional refinance, or doing nothing. If one of those serves you better, that is what I will say.
Counseling, then decide
Independent counseling comes before any commitment. You are meant to be able to walk away after it, and plenty of people should.
Common questions
Will the bank own my home? +
No. You remain on title as the owner. The loan is secured by the property, the same as any mortgage. This particular myth is the single most common reason people never ask the question.
What happens to my heirs? +
The loan becomes due after the death of the last borrower and of any eligible non-borrowing spouse. Per the CFPB, heirs who want to keep the home must repay the full loan balance. If they sell, they must repay the full balance, or at least 95 percent of the home's appraised value if the balance owed exceeds the home's value. That 95 percent figure is the non-recourse protection: the shortfall beyond it is covered by the FHA insurance rather than by your family.
Can I lose the house? +
Yes, and it deserves a direct answer. The CFPB lists three borrower responsibilities: pay property charges such as taxes and homeowners insurance on time, keep the home in good repair, and keep it as your principal residence. Its guidance says that if you do not meet these requirements, you could lose your home to foreclosure. These obligations continue for as long as the loan is in place.
What about my spouse if they are younger? +
There is a defined status for this called an eligible non-borrowing spouse, and it can allow them to remain in the home after the borrowing spouse dies. It is not automatic. The eligible non-borrowing spouse must continue to meet the obligations of the mortgage, including paying property charges and maintaining the home, and the loan becomes due when they no longer live there. The qualifying conditions are specific, so we will confirm the current requirements with the lender in writing for your situation rather than relying on a general description.
How much can I get? +
HUD states that the amount available depends on the age of the youngest borrower or eligible non-borrowing spouse, the current interest rate, and the lesser of the appraised value, the HECM FHA mortgage limit, or the sales price. Older borrowers generally access more. I will run your actual figures rather than quote a range that may not apply to you.
Is counseling really required? +
Yes, for a HECM. You must complete counseling with a HUD-approved counselor before the loan can proceed, and that counselor does not work for the lender. HUD publishes a directory of approved counselors so you can verify who you are speaking with. Treat it as a real opportunity to ask hard questions, not a box to tick.
Who do I call with questions? +
Me, directly. Rich Preston at (448) 202-7711 or rich@prestonlending.com. Ask me anything before you apply. There is no cost and no obligation.
Worth an honest conversation.
Bring your questions and your family. If it is not right for you, I will tell you that plainly.
This page describes the FHA-insured Home Equity Conversion Mortgage (HECM), available to qualifying homeowners aged 62 and older. Proprietary reverse mortgage products offered by individual lenders are not FHA-insured and may have different eligibility requirements and terms. The borrower remains responsible for paying property taxes and homeowners insurance on time, keeping the home in good repair, and maintaining it as their principal residence; failure to meet these requirements may result in foreclosure. If the borrower is absent from the home for more than 12 consecutive months in a healthcare facility and no co-borrower or eligible non-borrowing spouse resides there, the loan becomes due and payable. The loan balance grows over time as interest, mortgage insurance premiums, and fees accrue, reducing equity available to the borrower or their heirs. Counseling from a HUD-approved counseling agency is required before proceeding. Eligible non-borrowing spouse protections are subject to specific conditions that must be met and maintained. Information on this page is drawn from HUD and Consumer Financial Protection Bureau published guidance as of July 2026 and is subject to change; confirm current requirements before relying on them. This material has not been reviewed, approved, or issued by HUD, FHA, or any government agency, and Preston Lending is not affiliated with or acting on behalf of any government agency. This page is for informational purposes and is not an offer or commitment to lend. All loans are subject to credit approval, income and asset verification, and property appraisal. Rich Preston, Branch Manager, NMLS 1735238. NEXA Lending, AZ Broker License 0944059, NMLS 1660690. Equal Housing Lender.