You do. A reverse mortgage places a lien on the property as security, exactly as any mortgage does. You keep the title, you can sell at any time, and you can leave the home to your heirs — who then repay the loan, usually by selling or refinancing.

Is it true I can never lose the home?

No, and anyone who tells you that is misdescribing the product. You can lose the home in the same way as with any mortgage: by not meeting the obligations. Keep taxes, insurance and association dues current, maintain the property, and live there as your principal residence, and the loan does not become due. Fail to, and it can.

What do my heirs have to do?

When the loan becomes due they generally choose: repay it and keep the home, refinance it into their own loan, sell the home and keep any proceeds above the balance, or hand the property to the lender. On an FHA-insured HECM they never owe more than the home is worth. Timelines apply, so they should contact the servicer early.

How is this different from a home equity line of credit?

A HELOC requires monthly payments and can be frozen or reduced by the lender. A reverse mortgage line of credit requires no monthly principal and interest payment, cannot be frozen for the reasons a HELOC can, and its unused portion grows. In exchange it costs more to set up, has mandatory counseling, and the balance grows rather than falls. Which is better depends on whether you want access or repayment.

Does it affect Social Security or Medicare?

Loan proceeds are generally not income, so Social Security and Medicare are typically unaffected. Needs-based programs such as Medicaid and SSI can be a different matter, because money sitting in an account may count as an asset. This is a question for a benefits adviser or an elder law attorney, not for a loan officer.

Can I still leave the house to my children?

Yes. What changes is how much equity is left in it. The balance grows over time, so the inheritance is the home's value less what is owed. Many families find the honest version of that conversation easier to have before the loan is taken than afterwards.

Loan option

Reverse mortgages (HECM)

A reverse mortgage lets an eligible homeowner aged 62 or older convert part of their home equity into loan proceeds without a monthly principal and interest payment. The balance grows rather than shrinks, and the loan is repaid when you sell, move out permanently, or die.

Last updated 31 October 2026

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Homeowners 62+

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In short

Usually worth looking at if

Homeowners 62 or older with substantial equity who intend to stay in the home
People whose wealth is in the house rather than in income
Households weighing it against downsizing or a home equity line, with their family involved

Decided by the lender, not by us

Which payment options are offered, and whether they can be changed later
Minimum property standards and what repairs must be completed
How property charges are handled, including whether a set-aside is required for taxes and insurance
Credit and property-charge history requirements under the financial assessment

How it works

How reverse mortgages (HECM) work

The most common reverse mortgage is the Home Equity Conversion Mortgage, insured by the Federal Housing Administration, part of HUD. The loan comes from a private lender; FHA insures it. It is a loan, not a benefit, and not money from the government.

How much you can draw is called the principal limit. It is calculated from the age of the youngest borrower, the expected interest rate, and the lesser of the appraised value or the FHA lending limit. Older borrowers and lower rates produce more. There is no percentage you can look up in advance — it is worked out for your specific case.

You choose how to take the money: a lump sum, equal monthly payments for as long as you live in the home, equal payments for a fixed term, a line of credit you draw on as needed, or a combination. The unused portion of a line of credit grows over time, which is why some people open one before they need it.

There is no monthly principal and interest payment. Interest and insurance premiums accrue onto the balance instead, so the amount owed grows and your equity shrinks. That is the trade, and it should be stated plainly rather than buried.

Before you can complete an application you must meet with an independent HUD-approved counselor. The counselor does not work for the lender. Treat that session as the place to ask everything you would otherwise ask the person selling you the loan.

What to weigh up

You keep title to the home. It is not a sale, and the lender does not take ownership because you took the loan.
You remain responsible for property taxes, homeowners insurance, association dues and maintaining the property, and the home must stay your principal residence. Failing any of these can make the loan due and payable — this is where most reverse mortgage trouble actually begins, not in the loan terms.
In Florida, rising property insurance premiums are a live risk on this product specifically. The obligation to keep insurance in force does not soften because premiums went up.
A HECM is non-recourse: when the home is sold to repay the loan, neither you nor your heirs owe more than it is worth at that point. But the growing balance does reduce what is left for them, and that conversation is better had early than discovered later.
If one spouse will not be a borrower, ask about non-borrowing spouse protections before anything else. They are real, conditional, and strict.
An extended absence — a long stay in care, for instance — can trigger repayment. Understand the rule before it matters.

Set by the lender, not by us

These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.

Which payment options are offered, and whether they can be changed later
Minimum property standards and what repairs must be completed
How property charges are handled, including whether a set-aside is required for taxes and insurance
Credit and property-charge history requirements under the financial assessment
Fees, including origination and servicing charges
Whether the lender offers proprietary products alongside the FHA-insured one

Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.

Reverse mortgage compared with a home equity line of credit

Both draw on the equity in a home you already own. They differ in whether you make payments, what the lender can do later, and what happens to the balance over time.

Reverse mortgage compared with a home equity line of credit
Factor	Reverse mortgage (HECM)	Home equity line of credit
Monthly payment	No monthly principal and interest payment required. Taxes, insurance and association dues remain your responsibility.	Monthly payments required, which may be interest-only during the draw period and then rise substantially when it ends.
What happens to the balance	It grows. Interest and insurance premiums accrue onto the loan, so equity falls over time.	It falls as you repay, assuming you are paying more than the interest.
Can the lender reduce or freeze it	An established line of credit cannot be frozen for the reasons a HELOC can, and its unused portion grows over time.	Yes. Lenders can and historically have frozen or reduced lines, including when property values fall.
Who can get one	Homeowners 62 or older, subject to a financial assessment of credit and property-charge history.	No age requirement, but it is underwritten on income and debt-to-income as well as equity.
Counseling	Independent HUD-approved counseling is required before the application can be completed.	Not required.
When it is repaid	When the last borrower dies, sells, or stops using the home as a principal residence — or if the loan's obligations are not met.	On the schedule in the agreement, regardless of whether you still live there.
If the balance exceeds the home's value	On an FHA-insured HECM, neither you nor your heirs owe the difference when the home is sold to repay it.	You owe the balance. The debt does not shrink to match the property.
Set-up cost	Generally higher, including mortgage insurance premiums.	Generally lower.

Monthly payment

Reverse mortgage (HECM): No monthly principal and interest payment required. Taxes, insurance and association dues remain your responsibility.
Home equity line of credit: Monthly payments required, which may be interest-only during the draw period and then rise substantially when it ends.

What happens to the balance

Reverse mortgage (HECM): It grows. Interest and insurance premiums accrue onto the loan, so equity falls over time.
Home equity line of credit: It falls as you repay, assuming you are paying more than the interest.

Can the lender reduce or freeze it

Reverse mortgage (HECM): An established line of credit cannot be frozen for the reasons a HELOC can, and its unused portion grows over time.
Home equity line of credit: Yes. Lenders can and historically have frozen or reduced lines, including when property values fall.

Who can get one

Reverse mortgage (HECM): Homeowners 62 or older, subject to a financial assessment of credit and property-charge history.
Home equity line of credit: No age requirement, but it is underwritten on income and debt-to-income as well as equity.

Counseling

Reverse mortgage (HECM): Independent HUD-approved counseling is required before the application can be completed.
Home equity line of credit: Not required.

When it is repaid

Reverse mortgage (HECM): When the last borrower dies, sells, or stops using the home as a principal residence — or if the loan's obligations are not met.
Home equity line of credit: On the schedule in the agreement, regardless of whether you still live there.

If the balance exceeds the home's value

Reverse mortgage (HECM): On an FHA-insured HECM, neither you nor your heirs owe the difference when the home is sold to repay it.
Home equity line of credit: You owe the balance. The debt does not shrink to match the property.

Set-up cost

Reverse mortgage (HECM): Generally higher, including mortgage insurance premiums.
Home equity line of credit: Generally lower.

The honest framing is access versus repayment. A HELOC is cheaper to open and you pay it down; a reverse mortgage costs more to open, requires no monthly payment, and the balance grows against the house. If you have the income to service a HELOC and intend to repay it, that is usually the cheaper route. If you do not, the comparison is not really between two loans — it is between a reverse mortgage, downsizing, and doing nothing. All three deserve a look.

Terms used on this page

Reverse mortgage: A loan that lets an eligible older homeowner convert part of their home equity into proceeds without a monthly principal and interest payment. The balance grows over time and is repaid when the loan becomes due.You keep title to the home — it is not a sale to the bank. But you remain responsible for property taxes, homeowners insurance, association dues and maintenance, and the home must remain your principal residence. Those obligations are where most reverse mortgage trouble actually starts.
HECM (Home Equity Conversion Mortgage): The FHA-insured reverse mortgage, and the most common type in the United States. It lets eligible homeowners aged 62 or older convert part of their home equity into loan proceeds without a monthly principal and interest payment.You keep title to the home and you still have obligations: property taxes, homeowners insurance and association dues must stay current, the property must be maintained, and it must remain your principal residence. Failing those can make the loan due and payable.
Non-recourse: A feature of FHA-insured reverse mortgages: when the loan becomes due and the home is sold to repay it, neither you nor your heirs owe more than the home is worth at that point, even if the balance has grown beyond it.It protects against owing more than the house is worth. It does not mean the loan is free or that the balance stops growing — interest and insurance premiums accrue, and the equity left for heirs shrinks accordingly.
Maturity event: The event that makes a reverse mortgage due and payable: the last surviving borrower dies, sells the home, or stops using it as a principal residence — or the borrower fails to meet the loan's obligations.This is the part of a reverse mortgage worth understanding before anything else, because it is where the surprises are. An extended absence can trigger it, and so can unpaid property taxes or lapsed insurance.
Non-borrowing spouse: A spouse who is not a borrower on a reverse mortgage. Federal rules provide protections allowing an eligible non-borrowing spouse to remain in the home after the borrower dies, if specific conditions are met and continue to be met.The protections are real but conditional, and the conditions are strict. If one spouse will not be on the loan, make this the first thing you ask about, not the last.
Principal limit: The maximum amount a reverse mortgage borrower can draw, determined by the age of the youngest borrower, the expected interest rate, and the lesser of the appraised value or the FHA lending limit.Older borrowers and lower rates produce a higher limit. It is not a percentage you can look up in advance — it is calculated for your specific case.

See the full mortgage glossary

Questions about this program

Who owns the home?: You do. A reverse mortgage places a lien on the property as security, exactly as any mortgage does. You keep the title, you can sell at any time, and you can leave the home to your heirs — who then repay the loan, usually by selling or refinancing.
Is it true I can never lose the home?: No, and anyone who tells you that is misdescribing the product. You can lose the home in the same way as with any mortgage: by not meeting the obligations. Keep taxes, insurance and association dues current, maintain the property, and live there as your principal residence, and the loan does not become due. Fail to, and it can.
What do my heirs have to do?: When the loan becomes due they generally choose: repay it and keep the home, refinance it into their own loan, sell the home and keep any proceeds above the balance, or hand the property to the lender. On an FHA-insured HECM they never owe more than the home is worth. Timelines apply, so they should contact the servicer early.
How is this different from a home equity line of credit?: A HELOC requires monthly payments and can be frozen or reduced by the lender. A reverse mortgage line of credit requires no monthly principal and interest payment, cannot be frozen for the reasons a HELOC can, and its unused portion grows. In exchange it costs more to set up, has mandatory counseling, and the balance grows rather than falls. Which is better depends on whether you want access or repayment.
Does it affect Social Security or Medicare?: Loan proceeds are generally not income, so Social Security and Medicare are typically unaffected. Needs-based programs such as Medicaid and SSI can be a different matter, because money sitting in an account may count as an asset. This is a question for a benefits adviser or an elder law attorney, not for a loan officer.
Can I still leave the house to my children?: Yes. What changes is how much equity is left in it. The balance grows over time, so the inheritance is the home's value less what is owed. Many families find the honest version of that conversation easier to have before the loan is taken than afterwards.

Official sources

Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.

Reverse mortgages: what you should know (opens in a new tab) — Consumer Financial Protection Bureau
Home Equity Conversion Mortgages for seniors (opens in a new tab) — HUD
HECM counseling requirement and counselor search (opens in a new tab) — HUD
Reverse mortgages (opens in a new tab) — Federal Trade Commission

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