Reverse Mortgage Calculator
Understanding Reverse Mortgages Before deciding if a reverse mortgage is the right fit for your financial goals, it's important to consider several key factors. The guide below explains how a reverse mortgage works and outlines the essential steps to help you access your home’s equity with confidence. You can also use our tool to calculate your eligibility and see where you stand.
Reverse Mortgage Eligibility & Counseling Guide
Step 1: Meet with a HECM Counselor
Before applying for a reverse mortgage, you must meet with a HUD-approved HECM counselor. This required session helps you:
- Understand program eligibility requirements
- Explore financial implications and alternative options
- Learn about loan repayment terms and when the mortgage becomes due and payable
After completing counseling, you should be equipped to make an independent, informed decision about whether a reverse mortgage suits your needs.
Find a counselor online or call 800-751-2606 toll-free.
Step 2: Check Your Eligibility
To qualify for a reverse mortgage, both borrower and property requirements must be met. You can review the criteria below or use our reverse mortgage calculator to estimate your eligibility.
- Youngest borrower must be 62 years or older
- Must own the home outright or have significant equity
- Home must be your primary residence
- Completion of HECM counseling is required
- Must meet financial criteria set by HUD
Eligible property types must meet FHA standards and flood requirements:
- Single-family home or 2–4 unit property (with one unit occupied by borrower)
- HUD-approved condominium
- Manufactured home that complies with FHA guidelines
Step 3: Apply with an FHA-Approved Lender
If you meet the eligibility criteria, you can apply for a reverse mortgage through an FHA-approved lender.
Search online or ask your HECM counselor for a list of approved lenders.
Your lender will guide you through:
- HECM program requirements
- Loan approval process
- Repayment terms
HECM Features & Benefits
How Much Can You Receive?
Your loan amount depends on:
- Age of the youngest borrower
- Current interest rates
- The lesser of your home’s appraised value, sale price, or maximum lending limit
You may need to set aside funds from the loan to cover property taxes and insurance.
Key Benefits
- No monthly mortgage payments required
- Borrowers must continue to:
- Occupy the home as their primary residence
- Pay property taxes and insurance
- Maintain the home per FHA guidelines
- Loan balance increases over time due to interest and fees
- You can stay in the home indefinitely, even if the loan balance exceeds the home’s value—as long as loan obligations are met
Non-Recourse Protection
HECM loans are non-recourse, meaning you or your heirs will never owe more than the lesser of the home’s value or the loan balance, provided the home is sold to repay the loan.
Mortgage Insurance Premium (MIP)
MIP ensures you continue receiving loan proceeds—even if your lender becomes insolvent—offering an added layer of financial protection.