How much money can I receive from a reverse mortgage?
The amount depends on your age (older borrowers receive more), the appraised value of your home, current interest rates, and the FHA HECM lending limit ($1,209,750 in 2026). As a general guide, a 70-year-old with a $700,000 paid-off home in California can typically access $300,000–$420,000 in equity. We'll run the exact numbers for your situation in a free consultation.
What happens if I outlive the loan?
You can't. A HECM lasts as long as you live in the home as your primary residence — there is no maturity date that forces repayment while you're still there. You can stay in your home for the rest of your life, regardless of how the loan balance grows.
What if my home is worth less than the loan when I pass away?
A HECM is a non-recourse loan, federally insured by FHA. Your heirs will never owe more than the home is worth. If the home's value is less than the loan balance, FHA insurance covers the difference — your heirs simply turn the home over to the lender with no further obligation. If the home is worth more, your heirs sell it, pay off the loan, and keep the remaining equity.
Can my spouse stay in the home if I pass away first?
Yes, if your spouse is a co-borrower on the HECM. Even if your spouse is younger than 62 at closing, they can be added as a "non-borrowing eligible spouse" with full protection to remain in the home for life. This is a critical detail we'll walk through with you carefully.
Do I still pay property taxes and insurance?
Yes. You remain responsible for property taxes, homeowner's insurance, HOA dues (if any), and basic home maintenance. If you fall behind on these, it could trigger the loan to become due — which is why HUD requires the counseling step, to make sure you understand and can handle these ongoing obligations.
Will a reverse mortgage affect my Social Security or Medicare?
No. Reverse mortgage proceeds are considered loan advances, not income, so they don't affect Social Security or Medicare eligibility. However, if you receive Medicaid or SSI (need-based programs), the way you receive and hold the proceeds can matter — we'll flag that during your consultation and recommend talking to a benefits specialist.
What are the fees and costs?
A HECM has standard closing costs: origination fee (capped by HUD), FHA mortgage insurance premium, appraisal, title, and recording fees. Most of these can be financed into the loan, meaning no out-of-pocket cost. We'll provide a complete cost disclosure before you commit to anything — the regulated Good Faith Estimate is required by law.
Can I change my mind after I close?
Yes. Federal law gives you a three-business-day right of rescission after closing. You can cancel for any reason, get any fees paid refunded, and the lien is removed from your property. After those three days, you can still pay off the loan at any time without prepayment penalty.
