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If you're a homeowner age 62 or older and want access to a portion of your home equity without selling or taking on new required monthly payments, a reverse mortgage may be an option. But you must meet HUD's eligibility criteria for income, property, equity, and citizenship status. This guide explains every qualification you need to know, including HUD policy changes and how lenders evaluate applicants. Quick Eligibility Checklist To qualify for an FHA-insured HECM reverse mortgage, you must: Be 62 or older (youngest borrower or eligible non-borrowing spouse... Read Full Article
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If you're in the market for a loan that can convert your home equity into cash flow or a line of credit in retirement, chances are you have explored the option of a reverse mortgage. However, the reverse mortgage is not a one-size-fits-all solution. Many people are unaware that there are several products to choose from, including both Federal Housing Administration (FHA) Home Equity Conversion Mortgages (HECM) and private loan options. Quick Takeaway: If your home is worth more than the FHA limit of or you're younger than... Read Full Article
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Does Dave Ramsey know much about reverse mortgages? Dave does a hit piece on reverse mortgages, pointing out some of the less popular aspects of the loan. However, he is either OK with exaggerating the truth or reveals his ignorance about how reverse mortgages work. Is Dave Right About Reverse Mortgages? Firstly, let's give Dave his due when he tells the truth. He is right when he says a reverse mortgage operates in reverse of a standard or forward loan. Instead of a... Read Full Article
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FHA & HECM Operations During a Federal Government Shutdown When the U.S. government shuts down because Congress hasn’t approved funding, many HUD and FHA offices run with limited staff and services. For the Home Equity Conversion Mortgage (HECM) program, here’s what matters: What Stays Open Loan Servicing & Payments — If you already have a HECM, your monthly draws and scheduled payments from HUD-held loans will continue. Payoff Requests — You or your heirs can still request payoff statements or subordinations for Secretary-held HECM liens, though processing may take longer.... Read Full Article
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If you're exploring a reverse mortgage, the first question is simple: how old do you need to be? For the federally insured Home Equity Conversion Mortgage (HECM), you must be at least 62 when the loan closes. That requirement remains the same for 2026. Your age also plays a direct role in how much you qualify for, since older borrowers receive a higher percentage of their home's value. Some private or jumbo reverse mortgages start as early as age 55, though these loans are not FHA-insured and follow different rules.... Read Full Article
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Updated September 2025 with the latest HUD 4000.1 rules on ADUs, manufactured homes, and PACE liens Understanding HUD’s Property Standards When applying for a reverse mortgage, your home must meet specific property standards set by HUD. These requirements ensure the property is safe, sound, and secure, but they can vary depending on your specific situation. For instance, a home does not need central heating, but it must have a permanent, working heat source that HUD considers acceptable. Acceptable heat sources vary by region. For example, a simple wall heater... Read Full Article
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If you've applied for a reverse mortgage and found that you don't qualify — or the amount offered isn't enough to pay off your existing mortgage — you're not alone. Many homeowners are surprised when changing interest rates or updated HUD limits reduce the proceeds they're eligible for. The good news? Even if you don't qualify today, you still have options. In this guide, we'll explore five strategies that can help you move forward. Why You Might Not Qualify for a Reverse Mortgage Several factors determine how much money... Read Full Article
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Reverse Mortgage (Definition): A reverse mortgage is a home loan for borrowers typically aged 62 and older that allows you to convert a portion of your home equity into tax-free cash without required monthly mortgage payments. You retain title and are responsible for continuing to pay property taxes and homeowner's insurance. Interest accrues and is added to your balance and can be repaid at any time. Most borrowers repay the loan when they sell their property, move out, or pass away. HECM reverse mortgages are insured by the Federal... Read Full Article
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We live with my mother-in-law and were present throughout the process of her getting a reverse mortgage. The broker is fully aware that we live there with her, help keep up the property, and pay living expenses. He told us if she ever needed to go to a nursing home, if she was in the home at least once a month, they would not recall the loan. What I am reading here seems contradictory to what we were told. We were also told about having 12 months to sell or... Read Full Article
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Understanding Reverse Mortgage Income Requirements Welcome to our 2026 guide on reverse mortgage income requirements. This article explains the financial assessment underwriting guidelines, specifically the minimum residual income requirements established by HUD. These requirements play a crucial role in the lender's application process, ensuring that you, as a borrower, can comfortably manage ongoing property-related expenses, such as property taxes, homeowners insurance, and maintenance costs, after securing a reverse mortgage. We will provide clear, easy-to-follow tables that detail the minimum residual income needed based on your family size and the region... Read Full Article