You don't need a 40-page brochure to understand a reverse mortgage. Here's the entire thing in plain English, in the order it actually happens.
Step 1 — You qualify
You're 62 or older (55+ for HomeSafe jumbo). You own your home, or have enough equity that the reverse mortgage can pay off any remaining forward mortgage at closing. The home is your primary residence.
Step 2 — The lender pays you, based on three things
How much you can access depends on:
- The age of the youngest borrower. Older = more proceeds.
- Your home's appraised value (capped at the 2026 FHA limit of $1,249,125 for HECM; uncapped for HomeSafe).
- The current expected interest rate.
You choose how to receive the proceeds: lump sum, monthly payments, a line of credit, or a combination.
Step 3 — You stay in your home
You retain title. You live in the home as long as it's your primary residence. You meet three basic obligations: occupy as primary, keep up with property taxes and insurance, and maintain the property.
You don't make monthly mortgage payments. The loan balance grows over time as interest accrues.
Step 4 — The loan ends when you leave the home
The reverse mortgage becomes due when the last borrower permanently leaves the home — sale, move, or death. Your heirs have 6-12 months to repay, refinance, sell, or walk away.
The FHA non-recourse guarantee means neither you nor your heirs can ever owe more than the home is worth.
That's it
The rest is detail. Costs, counseling, paperwork, appraisal — those all matter, but the structure is what you just read. Four steps.
If this fits the shape of your situation, the calculator above gives a rough estimate of proceeds. A 30-minute call covers everything else.