Reverse Mortgage Loan Programs

The Home Equity Conversion Mortgage, or HECM, is the most widely used reverse mortgage in the United States. It is insured by the Federal Housing Administration (FHA) and allows eligible homeowners age 62 and older to convert a portion of their home equity into loan proceeds, without a required monthly principal-and-interest mortgage payment. The loan typically becomes due when the last borrower (or eligible non-borrowing spouse, under applicable rules) no longer occupies the home as a primary residence.

For 2026, the HECM maximum claim amount is $1,249,125, meaning home value up to that figure can be considered when calculating available proceeds. HECM borrowers may choose from several payout structures — lump sum, monthly payments, a line of credit, or a combination — depending on whether a fixed or adjustable rate is selected.

Homeowners age 62 or older with meaningful equity in a primary residence who want to improve retirement cash flow, eliminate an existing required monthly mortgage payment, or establish a financial cushion for the years ahead are typical HECM candidates. FHA insurance provides non-recourse protection so borrowers and heirs generally never owe more than the home's value when the loan is repaid through a sale.

The HECM Line of Credit is an adjustable-rate version of the FHA-insured HECM in which some or all of your available proceeds are held in a credit line you can draw on whenever you choose. One of its most distinctive features is the growth feature: the unused portion of the credit line typically grows over time at a rate tied to the loan's interest rate plus mortgage insurance, which may increase the funds available to you in later years, regardless of changes in your home's market value.

Unlike a traditional HELOC, a HECM line of credit generally cannot be frozen, reduced, or cancelled by the lender as long as loan obligations are met, and no monthly principal-and-interest repayment is required on amounts drawn. This is why financial planners often view it as a retirement risk-management tool.

It's designed for financially aware homeowners 62+ who do not need all their equity today but want guaranteed, growing access to funds for the future — often as part of a coordinated retirement income plan.

The HECM Fixed-Rate Reverse Mortgage provides your available proceeds as a single lump-sum disbursement at closing, at an interest rate that never changes for the life of the loan. Because the rate is fixed, this option offers maximum predictability: you know exactly how much you receive and exactly how interest will accrue over time.

Under HECM rules, fixed-rate loans are structured as a single disbursement, and the amount available at closing may be subject to first-year payout limitations. This makes the fixed-rate HECM best suited to borrowers with a large, defined, immediate need — most commonly paying off an existing mortgage balance.

Homeowners 62+ who need a significant amount of funds at closing for a specific purpose and prefer the certainty of a rate that will never adjust are typical candidates. FHA insurance and non-recourse protections still apply.

The HECM for Purchase (H4P) allows eligible homeowners 62+ to buy a new primary residence using a reverse mortgage — combining a home purchase and a reverse mortgage in one transaction with one set of closing costs. The buyer brings a required down payment (typically ranging from roughly 45% to 70% of the purchase price, depending on age and interest rates), and the HECM finances the remainder, with no required monthly principal-and-interest payment afterward.

H4P is a powerful right-sizing tool: it lets buyers move closer to family, into a single-story home, or into a 55+ community while preserving more of their savings than an all-cash purchase would require.

Buyers 62+ who are relocating, downsizing, or upsizing to a home that better fits their retirement lifestyle — and who want to avoid taking on a new required monthly mortgage payment — are the primary audience. The new home must become the primary residence, generally within 60 days of closing.

Jumbo proprietary reverse mortgages are privately funded programs designed for owners of higher-value homes. Because they are not FHA-insured, they are not bound by the HECM maximum claim amount ($1,249,125 for 2026) — select programs may consider home values well into the multi-million-dollar range and may offer loan amounts of $4 million or more, subject to program limits and qualification.

Proprietary programs can also offer flexibility the HECM cannot: no FHA mortgage insurance premiums, eligibility for certain non-FHA-approved condominiums, and — under some programs and in some states — minimum borrower ages below 62. Terms, features, and protections vary by program, so a side-by-side comparison with a HECM is always worthwhile.

Owners of higher-value primary residences — luxury homes, waterfront properties, and estates — whose equity substantially exceeds what a HECM could access are the typical audience.

A Reverse Mortgage Line of Credit gives eligible homeowners on-demand access to home equity without a required monthly principal-and-interest payment. This structure is available through the FHA-insured HECM (with its unique credit-line growth feature) and through select jumbo proprietary programs for higher-value homes. Funds sit unused until you draw them and interest accrues only on what you actually borrow.

Compared with a traditional bank HELOC, a reverse mortgage credit line does not require monthly repayment, does not expire at the end of a draw period, and — in the case of a HECM — generally cannot be reduced or frozen by the lender as long as loan obligations are met. That reliability is exactly why financial planners often view it as a retirement risk-management tool.

It's designed for homeowners who value flexibility and control — those who may not need funds today but want dependable access to equity for whatever the future brings.

A Single-Purpose Reverse Mortgage provides funds that may be used for one specific, lender-approved purpose — most commonly paying property taxes or completing necessary home repairs. These loans are typically offered by state agencies, local governments, or nonprofit organizations, and they are generally the lowest-cost form of reverse mortgage available.

Because the proceeds are restricted to a single use and availability varies by location and funding cycles, single-purpose loans serve a narrower audience than HECM or proprietary programs, but for homeowners whose need matches the approved purpose, they can be a highly economical solution.

Homeowners — often with lower or moderate incomes — who have one clearly defined need, such as catching up on property taxes or funding an essential repair, and who want the lowest-cost path to address it, are the primary audience.

Many older homes need work — and many older homeowners have far more equity than cash. A Reverse Mortgage for Home Repairs uses reverse mortgage proceeds (typically through a HECM lump sum, line of credit, or a single-purpose program where available) to fund repairs, renovations, and accessibility improvements so you can remain safely and comfortably in the home you love.

This approach can also solve a common catch-22: a home that needs repairs to meet FHA property standards may have certain required repairs completed in connection with the loan (through a repair set-aside when permitted), letting the loan itself help bring the property up to standard.

Homeowners 62+ who plan to age in place and need to fund maintenance, modernization, or safety and accessibility upgrades without draining savings or taking on monthly payments are the typical audience. Common uses include roof, HVAC, plumbing, and electrical repairs; hurricane hardening common in Florida; and accessibility improvements such as walk-in showers, grab bars, ramps, and stair lifts.

Property taxes are one of the most persistent expenses of homeownership — and falling behind on them can put your home at risk. A Reverse Mortgage for Tax Relief uses home equity to bring property taxes current, stay current going forward, or address other pressing tax obligations — converting an asset you already own into the means of protecting it.

Depending on your situation, this may be accomplished through a HECM (with proceeds used to pay taxes and, when applicable, a Life Expectancy Set-Aside that earmarks funds for future property charges), a single-purpose property tax loan where available, or a local tax deferral program. Our team can help you understand which route may fit your circumstances.

Homeowners 62+ who are behind on property taxes, worried about keeping up with them on a fixed income, or facing another significant tax obligation that home equity could responsibly address are the typical audience.

Already have a reverse mortgage? A Reverse Mortgage Refinance — most commonly a HECM-to-HECM refinance — replaces your existing reverse mortgage with a new one when doing so may provide a meaningful benefit. Because home values and lending limits change over time (the HECM maximum claim amount is $1,249,125 for 2026), homeowners whose property has appreciated may qualify for significantly more available funds than when they first closed.

Refinancing may also allow you to move from a fixed-rate lump sum into a line of credit, improve your interest rate, or add an eligible spouse to the loan for added protection. HECM-to-HECM refinances are subject to seasoning requirements (typically 18 months) and an industry benefit test to help ensure the transaction genuinely serves the borrower. It's also possible to refinance a reverse mortgage into a proprietary program, or refinance out of a reverse mortgage entirely, when that better fits your goals.

Existing reverse mortgage borrowers whose home value has risen, whose loan terms no longer fit, or whose family circumstances have changed since closing are the typical audience.