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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
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Bringing It to the Senate Reverse mortgages have undergone many changes in their 65-year lifespan (depending on who you ask). As the story goes, a small, local bank wrote the first reverse mortgage in 1961 to a woman in Portland, Maine. The bank owner wanted to help the wife of his high school football coach stay in her home after her husband passed away. From there, the product took off and continues to help more older Americans remain in their homes as they age. 1969 It... Read Full Article
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If you're exploring ways to use your home's equity to improve your financial security in retirement, it's helpful to know that there are three main types of reverse mortgages, each designed for different needs. In this article, we'll explain: Home Equity Conversion Mortgages (HECM): The most popular, federally insured option. Proprietary Reverse Mortgages: Also known as "jumbo" reverse mortgages, these are ideal for homes with higher values. Single-Purpose Reverse Mortgages: A cost-effective choice for specific financial goals. We'll break down the key features of each, highlight how they can support... Read Full Article
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In 2026, only a few regional and specialty banks offer reverse mortgages, including University Bank, The Federal Savings Bank, and Magnolia Bank. Most large banks left the market years ago, so many borrowers choose specialized non-bank lenders for better rates and service. Do Banks Offer Reverse Mortgages in 2026? While large national banks like Wells Fargo, Bank of America, and Chase are familiar names for traditional mortgages, they no longer offer reverse mortgages. Most exited the market over a decade ago, citing regulatory changes, market risk, and shifting business... Read Full Article