Reverse Mortgages. Turn Home Equity Into Flexibility.
No monthly mortgage payments required; you must still pay property taxes, homeowners insurance, and maintain the home, or the loan may become due.
Explore options to access your home's equity — borrowers still pay taxes, insurance, and upkeep. Get a reverse mortgage estimate and talk with our team when you're ready.
This page explains how an FHA-insured Home Equity Conversion Mortgage (HECM) works. Reverse mortgage (HECM) loans are offered through Stride Bank, N.A. (NMLS #466690). All loans are subject to credit approval, program guidelines, and property eligibility.
Find a HUD-approved HECM counselor (opens hud.gov in a new tab). Counseling is required before you can get a HECM.
62+
HECM age requirement
FHA
HECM insured
NMLS
#466690
Reverse Mortgage Options
Know this before you consider a reverse mortgage
This material is not from HUD or FHA, and it was not approved by HUD, FHA, or any other government agency. National Mortgage Center and Stride Bank, N.A. are not affiliated with HUD or FHA.
- It's a loan, and the balance grows. Interest and mortgage insurance are added to the balance each month, so the amount you owe goes up and your equity usually goes down.
- You keep title to your home.
- Ongoing obligations. You must continue to pay property taxes, homeowners insurance, and maintain the home, or the loan may become due.
- When it must be repaid. The loan becomes due when a borrower dies and no surviving borrower lives in the home as a principal residence (an eligible non-borrowing spouse may be able to stay under HUD rules), when all borrowers sell or transfer title and none keeps it, when no remaining borrower lives in the home as a principal residence (including all borrowers being away more than 12 months in a row because of illness), or when a loan obligation isn't met. If the loan isn't repaid when due, the lender can foreclose.
- Counseling is required. Every HECM borrower must first meet with a HUD-approved HECM counselor. Find a HUD-approved HECM counselor (opens hud.gov in a new tab)
- Taxes and benefits. Loan proceeds are generally not taxable income, but they can affect needs-based benefits such as Medicaid or SSI. Talk to a tax or benefits advisor.
Page Contents
Navigate to any section below to learn more about reverse mortgages
Understanding Reverse Mortgages
What they are and how they work
Requirements & Options
Eligibility and payment options
Reverse Mortgage Calculator
Estimate only, not a quote
Frequently Asked Questions
Common questions answered
HECM Counseling
Required before any HECM
Benefits and Trade-offs
What to weigh before deciding
Related Calculators
Other helpful tools
Understanding Reverse Mortgages
A reverse mortgage is a loan that lets homeowners 62 and older borrow against part of their home equity. No monthly mortgage payments required; you must still pay property taxes, homeowners insurance, and maintain the home, or the loan may become due. The loan becomes due when the last borrower dies or moves out, when the home is sold, or when a loan obligation isn't met.
Key Features:
- No monthly mortgage payments required; you must still pay property taxes, homeowners insurance, and maintain the home, or the loan may become due.
- You keep title to your home
- Loan proceeds are generally not considered taxable income; consult a tax advisor.
- FHA mortgage insurance makes a HECM non-recourse
- Several ways to receive funds, depending on fixed or adjustable rate
Requirements:
- HECM borrowers must be 62 or older (an eligible non-borrowing spouse may be younger)
- Home is your principal residence
- Enough equity to pay off any existing mortgage at closing
- Financial assessment of credit history and ability to pay property charges
- Counseling with a HUD-approved HECM counselor
Did You Know?
The Home Equity Conversion Mortgage (HECM) is the reverse mortgage insured by the Federal Housing Administration (FHA). Proprietary reverse mortgages from private lenders are not FHA-insured and follow different rules.
These cards are a starting point. Read the guides on age, equity, how much you can borrow, principal limits, and costs, or start with the requirements checklist.
Reverse Mortgage Requirements & Options
What to know about qualifying for and using a reverse mortgage
Eligibility Requirements
Who can qualify for a reverse mortgage
Age & Ownership
- Youngest borrower 62 or older (an eligible non-borrowing spouse may be younger)
- Any existing mortgage paid off at closing, from loan proceeds or your own funds
- Home is your principal residence
- Borrowers must be on the title
Property Requirements
- Single-family home, or a 2–4 unit home where you live in one unit
- FHA-approved condominiums
- Manufactured homes that meet FHA requirements
- Home must meet FHA property standards; repairs may be required
Financial Requirements
- Enough equity after required payoffs
- Ability and willingness to pay property taxes, insurance, and upkeep
- Any delinquent federal debt must be resolved, which can include paying it from loan proceeds
- Financial assessment: the lender reviews your credit history, income, and record of paying property charges. The result can be a required set-aside from proceeds for taxes and insurance, or a denial.
Payment Options
How funds can be paid (depends on rate type)
Lump sum
One payment at closing
- • The only option with a fixed-rate HECM
- • No future draws; first-year limits apply to adjustable loans
Monthly payments
Tenure or term (adjustable rate)
- • Tenure: monthly while at least one borrower lives in the home and loan obligations are met
- • Term: monthly for a set number of years
Line of credit
Draw as needed (adjustable rate)
- • Unused credit grows at the loan's rate plus the annual mortgage insurance rate
- • Draws stop if the loan becomes due
Combination
Line of credit with term or tenure payments (adjustable rate)
- • You can change payment plans later if funds remain
- • First-year withdrawal limits apply
Features and Trade-offs
What to weigh before deciding
Living in the home
No monthly mortgage payments required; you must still pay property taxes, homeowners insurance, and maintain the home, or the loan may become due.
FHA mortgage insurance
A HECM is non-recourse: when the loan is repaid, you or your heirs won't owe more than the home's value. You pay for this insurance through upfront and annual premiums.
Taxes and benefits
Proceeds are generally not taxable income, but they can affect needs-based benefits such as Medicaid or SSI. Talk to a tax or benefits advisor.
Use of funds
Funds can be used for most purposes once any existing mortgage and closing costs are paid.
The balance grows
Interest and mortgage insurance are added each month, so you owe more over time and have less equity left for you or your heirs.
Next step: talk to a HUD-approved counselor
Counseling is required before you can get a HECM from any lender. A HUD-approved counselor can explain costs, how repayment works, and alternatives to a reverse mortgage.
Estimate your proceeds
The reverse mortgage calculator is on its own page. It is an estimate only, not a quote.
Open the reverse mortgage calculatorReverse Mortgage Questions and Answers
Plain answers about HECM reverse mortgages, costs, and repayment
HECM Counseling Is Required
Before you can get a HECM from any lender, you must meet with a HUD-approved HECM counselor. Counselors are independent of lenders. A session typically covers how a reverse mortgage works, its costs, your ongoing obligations, what happens when the loan becomes due, and alternatives that may fit your situation.
Independent
Counselors don't work for the lender
Required
Every HECM borrower must complete counseling
Covers alternatives
Ask about options besides a reverse mortgage
Schedule a FREE Reverse Mortgage Consultation
Get personalized guidance from our reverse mortgage team. Book a free consultation to discuss your options and see if a reverse mortgage is right for you.
Book Your Free Consultation
Choose a time that works for you
By booking a call, you agree that National Mortgage Center and Stride Bank, N.A. (NMLS #466690) may contact you about your reverse mortgage inquiry at the phone number and email you provide. Consent is not a condition of obtaining a loan. HUD-approved reverse mortgage counseling is required before your loan can proceed.
Flexible Scheduling
Choose from available times that fit your schedule
Team Guidance
Speak with our reverse mortgage team
No Obligation
Completely free consultation with no pressure
Reverse Mortgage Benefits and Trade-offs
Points to weigh against other options, such as downsizing, a home equity loan or line of credit, or a cash-out refinance
FHA Insurance and HUD Rules
- • Non-recourse: you or your heirs won't owe more than the home's value at repayment
- • If your lender doesn't make a payment you're owed under the loan, you can report it to HUD. Federal law requires HUD to take the action needed to get you those funds. If HUD finds the lender is unable or unwilling to pay, HUD makes the payment to you, as long as the loan isn't due.
- • You pay for FHA insurance through upfront and annual premiums
- • It insures the loan; it isn't a government benefit or endorsement
Living in the Home
- • No monthly mortgage payments required; you must still pay property taxes, homeowners insurance, and maintain the home, or the loan may become due.
- • You keep title to your home
- • Property taxes, insurance, HOA dues, and upkeep continue
- • The loan becomes due if you move out or don't meet loan terms
Cash From Equity
- • Access equity without selling
- • Loan proceeds are generally not considered taxable income; consult a tax advisor.
- • Can affect needs-based benefits such as Medicaid or SSI
- • The balance grows, leaving less equity for you or your heirs
Part of the Reverse Mortgages pillar
Explore other Reverse Mortgages pages
Return to the hub or open another page. Each page is meant to stand alone.
How much you can borrow
Principal limits, the maximum claim amount, and why cash is not the same as equity.
See what affects proceedsEquity requirements
How home value and existing liens are counted before proceeds are estimated.
See how equity is countedAge requirements
The HECM age rule and why the youngest borrower matters.
See the age ruleCosts and fees
Mortgage insurance, the origination cap, closing charges, and interest.
Review the costsLoan-to-value
Why a HECM uses a principal limit factor instead of one fixed LTV.
See how the limit is setRequirements
Age, occupancy, counseling, financial assessment, and property rules.
Review requirementsReverse mortgage calculator
Estimate HECM proceeds with the HUD principal limit factors.
Open the calculatorQuestions About Reverse Mortgages?
A HUD-approved HECM counselor can answer questions about how a reverse mortgage works, what it costs, and the alternatives. Counseling is required before you can get a HECM.
Stride Bank, N.A. · NMLS #466690 · Equal Housing Lender
This material is not from HUD or FHA, and it was not approved by HUD, FHA, or any other government agency. National Mortgage Center and Stride Bank, N.A. are not affiliated with HUD or FHA.