Types of reverse mortgages
HECM (FHA-insured)
The most common reverse mortgage. Backed by the Federal Housing Administration, with flexible ways to receive funds and federal consumer protections built in.
- Available to homeowners 62 and older
- FHA-insured and HUD-regulated
- Lump sum, monthly payments, line of credit, or a mix
- Any existing mortgage is paid off as part of the loan
- Requires meeting with a HUD-approved counselor before closing
Proprietary reverse mortgage
Offered by private lenders instead of FHA. Often used for higher-value homes, and some programs are open to younger homeowners.
- Can lend more than a HECM, often a fit for homes above $1M
- Some programs start at age 55, depending on your state
- Offered by private lenders, not FHA-insured
- Terms and protections vary by lender
Second-lien reverse mortgage
Keep your current mortgage, and its interest rate, while borrowing against your remaining equity, with no monthly payment on the new loan. Sometimes called a reverse second mortgage.
- Your existing mortgage stays as it is, and you keep paying it
- No monthly payment on the reverse second
- Some programs start at age 55, depending on your state
- A private (proprietary) program, available in a limited number of states
Is your home worth more than the FHA limit?
For 2026, a HECM can count your home's value only up to $1,249,125, the FHA limit. If your home is worth more, you still have choices. The extra value isn't lost; it just isn't counted toward a HECM.
Option 1: A HECM anyway
You can still get a HECM. It's figured on the limit instead of your full value.
- FHA-insured, with federal protections and required counseling
- Line of credit option that can grow over time
- Often lends a larger share of the value it counts
Option 2: A private (jumbo) reverse mortgage
A proprietary loan from a private lender that can count much more of your home's value, with many programs going up to about $4 million.
- Can leave you more money when the home is well above the limit
- Usually lends a smaller percentage than a HECM at the same age
- Not FHA-insured; terms and protections vary by lender
Option 3: Keep your first mortgage
If you have a low rate you want to keep, a second-lien reverse mortgage sits behind your current loan instead of paying it off.
- You keep your current rate and keep making that payment
- No monthly payment on the new loan
- Offered in a limited number of states
Which one leaves you more? It depends on your home's value, your age and current rates, so it's worth seeing them side by side. Our calculator shows a HECM and a private estimate together for homes over $1 million (no personal information needed). For how the limit works, read The 2026 reverse mortgage limit, explained.
Questions to ask: How much would each option give me? What does each cost in total, in writing? How fast will each balance grow? What protections come with a private loan compared with a HECM?
Ways to receive the money
Line of Credit (LOC)
A reverse mortgage structured as available credit you can draw from when needed. The unused portion of the credit line may grow over time.
- Use only what you need, when you need it
- Unused credit can grow over time
- A flexible cushion for unexpected expenses
- Generally requires an adjustable-rate HECM
Fixed vs. Adjustable Rate
Choose between a fixed-rate lump sum at closing or an adjustable-rate structure that allows monthly payments or a line of credit.
- Fixed-rate: one-time lump sum at closing
- Adjustable-rate: monthly payments or LOC
- The right choice depends on how you plan to use the funds
What to expect
You keep ownership of your home. A reverse mortgage doesn't change that. You live there, you decide what happens next.
No required monthly mortgage payments. You're still responsible for property taxes, homeowner's insurance, and basic maintenance. With a second-lien reverse mortgage, you also keep paying your existing first mortgage.
The loan is repaid later — typically when the home is sold or is no longer your primary residence. A reverse mortgage is a non-recourse loan, so your heirs are never on the hook for more than the home is worth.
HUD-approved counseling is required for every HECM. You'll meet with an independent counselor before any paperwork is signed, to confirm the loan fits your situation and you understand the alternatives.
The exact options available depend on your home, equity, and age.
When you're ready for personalized information, request it through the form and a licensed reverse mortgage professional will follow up with a clear overview of the programs that may fit.
