Overview
- HECMs remain the dominant reverse mortgage, backed by FHA insurance, non-recourse protections and required sessions with a HUD-approved counselor.
- For married borrowers, both spouses should be co-borrowers, both must be at least 62 and occupy the home, and the youngest spouse’s age is used to calculate available proceeds.
- Borrowers can receive funds as a lump sum, monthly payments, a line of credit or a combination, and paying off an existing mortgage can free up monthly cash flow.
- Proprietary or jumbo reverse mortgages are private loans that can exceed the HECM lending cap (just over $1 million in 2025) and some lenders accept applicants as young as 55, but terms and protections vary by lender.
- Single-purpose reverse mortgages from state, local or nonprofit programs are typically lower-cost but restricted to approved uses, and consumer concerns over fees and equity erosion underscore the need to compare lenders and understand obligations.