Frequently Asked Questions

A reverse mortgage is a loan that allows homeowners aged 62 and older to convert part of their home equity into cash — without selling the home or making monthly mortgage payments. The lender pays you, instead of the other way around.

The most common type is the HECM (Home Equity Conversion Mortgage, pronounced "heck-um"). HECMs are offered through FHA-approved private lenders and insured by the federal government through HUD. This insurance is what protects you if the loan balance ever exceeds the home's value.

The loan does not need to be repaid until you permanently leave the home. When that happens, the home is typically sold and the proceeds repay the loan. Any equity remaining goes to you or your heirs.

With a traditional mortgage, you make monthly payments to the lender over time — reducing your debt and building your equity. With a reverse mortgage, the process works in reverse: the lender pays you, and your loan balance grows over time while your equity decreases.

Both types of mortgage keep you on the title. Both require you to maintain the home and pay taxes and insurance. The key difference is that a reverse mortgage has no required monthly payment while you remain in the home.

To qualify for a HECM reverse mortgage, you generally need to meet four requirements:

Age: All borrowers on the title must be at least 62 years old.

Primary residence: The home must be where you live the majority of the year. Vacation homes and investment properties do not qualify.

Home equity: You must own your home outright or have a remaining mortgage balance low enough to be paid off with the reverse mortgage proceeds.

Financial capacity: You must demonstrate the ability to continue paying property taxes, homeowners insurance, and maintaining the property.

Credit and income are reviewed but the requirements are much less strict than a traditional mortgage. The best way to know if you qualify is a free, no-obligation consultation with our team.

Most single-family homes qualify. FHA-approved condominiums, certain manufactured homes, and 2-4 unit properties (where you occupy one unit as your primary residence) also qualify.

The home must meet FHA property standards — it needs to be in reasonable condition and pass an appraisal. If repairs are needed, they can sometimes be completed after closing using a set-aside from the loan proceeds.

The amount depends on three primary factors: your age, your home's appraised value, and current interest rates. Generally, older borrowers with more equity and lower interest rates qualify for more.

For 2026, the FHA lending limit is $1,209,750. Even if your home is worth more than that, the calculation is capped at this limit. Jumbo reverse mortgage programs are available for higher-value homes with different terms.

The only way to get your exact number is a personalized estimate — which we provide free, with no obligation to proceed.

Lump sum: Receive all proceeds at closing. This is the only fixed-rate option and works well for paying off an existing mortgage or a large expense.

Line of credit: Draw on funds as needed. The unused portion actually grows over time at the loan's interest rate — many financial planners recommend this for retirement planning.

Monthly payments: Receive a fixed amount each month, either for a set period or for as long as you live in the home (called "tenure" payments).

Combination: Many borrowers use a mix — for example, a lump sum to pay off their mortgage and a line of credit for future needs.

The loan becomes due when the last remaining borrower permanently leaves the home — through sale, moving to a care facility, or passing away. At that point, the loan must be repaid, typically within 12 months.

Most borrowers or their heirs repay the loan by selling the home. Any equity remaining after repayment goes to you or your estate. Your heirs are also free to refinance the reverse mortgage into a traditional mortgage if they wish to keep the home.

No. HECM reverse mortgages are non-recourse loans. This is one of the most important consumer protections built into the program.

Even if your loan balance grows to exceed your home's value — due to a drop in home prices or simply the passage of time — you (and your heirs) can never be held personally liable for the difference. FHA insurance, funded by the mortgage insurance premium you pay, covers any shortfall.

You will never owe more than the home is worth at the time of sale.

Reverse mortgage proceeds are loan funds, not income, so they are generally not subject to federal income tax. This is one reason some financial planners refer to a reverse mortgage line of credit as a tax-efficient retirement tool.

However, tax situations vary by individual, and receiving loan proceeds can sometimes affect eligibility for certain means-tested benefits. We always recommend consulting a tax advisor or financial planner for guidance specific to your situation.

Yes — and this is one of the most common reasons Utah homeowners choose a reverse mortgage. The reverse mortgage pays off your existing mortgage at closing, eliminating your monthly payment entirely.

You are still responsible for property taxes, homeowners insurance, and home maintenance. But if eliminating your mortgage payment would meaningfully improve your monthly cash flow, a reverse mortgage is worth exploring.

Yes. You retain the title to your home throughout the life of the loan. A reverse mortgage is a loan against your equity — not a transfer of ownership. The lender does not own your home.

This is one of the most persistent myths about reverse mortgages, and it is completely false. Your name stays on the title. You make the decisions about your home. The loan is simply secured by the home's equity, just like a traditional mortgage.

Nothing changes. There is no time limit on how long you can stay in your home. The loan does not come due based on your age or life expectancy — only when you permanently leave.

You cannot be evicted as long as you continue to pay property taxes, maintain homeowners insurance, and keep the home as your primary residence. The lender has no legal right to remove you from your home simply because time has passed.

No. Reverse mortgages are non-recourse loans. The obligation is attached to the home, not your estate. Your heirs will never be personally responsible for repaying the loan.

When the loan becomes due, your heirs have options: they can sell the home and use the proceeds to repay the loan (keeping any remaining equity), refinance the reverse mortgage into a traditional mortgage to keep the home, or if the loan balance exceeds the home's value, simply walk away — with no personal liability for the difference.

A reverse mortgage does not prevent you from leaving your home to your heirs. When you pass, your heirs inherit the home along with the obligation to repay the loan. They have up to 12 months to do so.

If there is equity remaining after repayment, your heirs receive that equity. If the loan balance has grown beyond the home's value, your heirs simply sell the home and walk away — they owe nothing out of pocket. The concern about "leaving nothing for the kids" is often overstated, especially in Utah's strong real estate market.

Step 1 — Free consultation: A conversation with a Utah loan officer to understand your goals and get a personalized estimate. No fees, no commitment.

Step 2 — HUD counseling: Federal law requires all HECM borrowers to complete a session with an independent HUD-approved counselor. This protects you and ensures you understand all your options.

Step 3 — Application: We submit your application and order a home appraisal.

Step 4 — Underwriting: The loan is reviewed and approved.

Step 5 — Closing: You sign the loan documents. FHA requires a 3-day right of rescission — you have 3 business days after closing to cancel without penalty.

Step 6 — Funding: Proceeds are disbursed in your chosen format. Most clients complete the process in 30-45 days.

Yes — and it is a feature, not a burden. Before any HECM can close, all borrowers are required to complete a counseling session with an independent, HUD-approved counselor. This counselor has no financial stake in whether you proceed with the loan.

The session covers your financial situation, your alternatives to a reverse mortgage, and the full terms of the program. Many clients tell us the counseling session was one of the most valuable parts of the process. It typically takes 60-90 minutes and can be done by phone.

Closing costs for a reverse mortgage are similar to a traditional mortgage and typically include:

FHA mortgage insurance premium (MIP): 2% upfront, then 0.5% annually on the loan balance. This is what funds the non-recourse guarantee.

Origination fee: Capped by FHA at 2% of the first $200,000 of home value, plus 1% of the remaining value, with a maximum of $6,000.

Third-party costs: Appraisal, title insurance, settlement fees, and other standard closing costs.

Most of these costs can be financed into the loan — meaning you may not need to pay anything out of pocket at closing. We walk through all costs transparently in your free estimate.