Reverse mortgages (HECM)
A reverse mortgage lets homeowners age 62 or older borrow against the equity in their home. The most common type is the Home Equity Conversion Mortgage (HECM), insured by the Federal Housing Administration. It is a serious decision, so counseling is required before you apply.*
How it works
- You must be 62 or older, and the title stays in your name.
- There are no required monthly mortgage payments, but the loan balance grows over time and your equity shrinks.
- You must live in the home as your main residence, and keep paying property taxes and homeowners insurance and keeping the home in good repair.
- The loan is repaid when you no longer live in the home. After that, you or your heirs usually repay by selling the home or paying off the balance.
Counseling is required
Before you can get a HECM, you must meet with a HUD-approved housing counselor. In Texas, counseling must be completed before closing, and an additional written disclosure must be signed at least 12 days before closing. Most reverse mortgages also give you three business days after closing to cancel.
Spouses
An eligible spouse who is not on the loan may be able to stay in the home under HUD rules after the borrower dies or moves to a care facility. The rules are specific, so ask a lender and your counselor how they would apply.
Limits and costs
- For 2026, HUD set the maximum HECM claim amount at $1,249,125. This is the cap used to figure how much can be borrowed, not the amount you will receive.
- The amount you can borrow depends on your age, your home value, current interest rates and the lender's terms.
- A reverse mortgage has costs, including mortgage insurance, interest and fees. Ask for them in writing and compare lenders.
Protect yourself
- A reverse mortgage is a loan, not free money.
- Be careful of anyone who pressures you to take one out to pay for home repairs or an investment.
- Talk to your family and a trusted advisor before you decide.
Questions to ask a lender
- What are all the costs: mortgage insurance, interest and fees?
- What happens to the loan if I move or pass away?
- What happens if my spouse is not on the loan?
- Which HUD-approved counselors can I call?
Sources
- CFPB: What is a reverse mortgage?
- CFPB: Reverse mortgage key terms
- HUD Mortgagee Letter 2025-22 (2026 HECM limit)
- Texas SML: reverse mortgage compliance worksheet
* General information only, not a loan offer, a commitment to lend or advice. Program rules, limits and fees are set by the agencies above and can change. Eligibility, rates and approval depend on credit, income, the property and the lender, and are not assured. This site is not affiliated with or endorsed by HUD, the FHA or any government agency. This page is general information, not an offer or advertisement of a specific reverse mortgage. Loans are subject to counseling, approval and Texas law. Sinjo Thomas, NMLS #2680792, C2 Financial Corporation, NMLS #135622. See disclosures.
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