Unlock Your
Home Equity
A reverse mortgage allows homeowners age 62 and older to convert their home equity into tax-free cash — with no monthly mortgage payments required. Stay in your home and enjoy the retirement you deserve.
Last updated: March 2026
What Is a
Reverse Mortgage?
A reverse mortgage — officially known as a Home Equity Conversion Mortgage (HECM) — is an FHA-insured loan that allows homeowners age 62 and older to borrow against the equity in their home without making monthly mortgage payments. Instead of you paying the lender each month, the lender pays you.
The loan is repaid when you sell the home, move out, or pass away. Until then, you continue to live in your home as your primary residence with no monthly mortgage payment obligation. You remain responsible for property taxes, homeowner's insurance, and basic home maintenance.
Reverse mortgages have been available since 1961 and have been FHA-insured since 1988. They are regulated by the Department of Housing and Urban Development (HUD) and include strong consumer protections, including mandatory counseling before closing.
The amount you can borrow depends on several factors: your age (older borrowers qualify for more), the appraised value of your home, current interest rates, and the FHA lending limit. As of 2026, the maximum HECM lending limit is $1,209,750.
The Reverse Mortgage
Process
Getting a reverse mortgage is a straightforward process with built-in consumer protections at every step.
Initial Consultation
Meet with a Theós Financial reverse mortgage specialist to discuss your goals, review your eligibility, and explore how a reverse mortgage fits into your retirement plan. We explain every detail in plain language.
HUD Counseling
Before any reverse mortgage can close, HUD requires that you complete a counseling session with an approved independent counselor. This session ensures you fully understand the loan terms, obligations, and alternatives. The counselor works for you, not the lender.
Application & Appraisal
Once counseling is complete, we process your application and order an FHA appraisal of your home. The appraisal determines your home's current market value, which affects how much equity you can access.
Closing & Funding
After underwriting approval, you close on the loan and choose how to receive your funds — as a lump sum, monthly payments, a line of credit, or a combination. Any existing mortgage is paid off first, and the remaining equity is yours.
Why Consider a
Reverse Mortgage?
No Monthly Mortgage Payments
The most significant benefit of a reverse mortgage is the elimination of monthly mortgage payments. This can free up hundreds or thousands of dollars per month in your retirement budget, giving you greater financial flexibility and peace of mind.
Stay in Your Home
A reverse mortgage allows you to remain in your home for as long as you live there as your primary residence. You retain full ownership and can enjoy your home, your neighborhood, and your community without disruption.
FHA-Insured Protection
HECM reverse mortgages are insured by the Federal Housing Administration. This means you are protected if the lender goes out of business, and you will never owe more than the home is worth — even if the loan balance exceeds the home's value.
Tax-Free Proceeds
The money you receive from a reverse mortgage is generally not considered taxable income. This means you can access your home equity without increasing your tax burden — consult your tax advisor for details specific to your situation.
Flexible Payout Options
Choose how you receive your funds: a lump sum payment, fixed monthly payments for a set period or for life, a line of credit that grows over time, or any combination of these options. You have complete control.
Heirs Are Protected
When the loan becomes due, your heirs can sell the home and keep any remaining equity above the loan balance. If the home is worth less than the loan balance, FHA insurance covers the difference — your heirs owe nothing.
Who Qualifies for a
Reverse Mortgage?
To qualify for an FHA HECM reverse mortgage, you must meet the following basic requirements:
- Be age 62 or older (at least one borrower)
- Own and occupy the home as your primary residence
- Have sufficient equity in the property
- Not be delinquent on any federal debt
- Complete HUD-approved reverse mortgage counseling
- Be able to maintain property taxes and homeowner's insurance
- Keep the home in good condition
Eligible property types include single-family homes, HUD-approved condominiums, townhouses, and some manufactured homes. Two-to-four unit properties also qualify as long as you live in one of the units as your primary residence.
There are no income or credit score requirements to qualify for a HECM. However, lenders will perform a financial assessment to determine your ability to meet ongoing obligations like property taxes and insurance.
What You Need to
Know
While there are no monthly mortgage payments, reverse mortgage borrowers do have ongoing responsibilities.
Property Taxes
You must continue to pay your property taxes on time. Failure to do so can result in the loan becoming due. Some borrowers choose to set aside a portion of their reverse mortgage proceeds to cover future tax payments.
Homeowner's Insurance
Maintaining adequate homeowner's insurance is required throughout the life of the loan. Your lender will verify insurance annually, so make sure your policy stays current and provides sufficient coverage.
Home Maintenance
You are responsible for keeping the property in good condition. This includes necessary repairs, maintenance, and compliance with local building codes. The home must remain safe, sanitary, and structurally sound.
Explore Your Reverse
Mortgage Options
If you are 62 or older and want to learn how a reverse mortgage can enhance your retirement, contact Theós Financial for a free, no-obligation consultation.