What is a reverse mortgage?

Reverse mortgage meaning is straightforward. The lender advances funds to you, or pays off an existing mortgage, and you are not required to make a monthly principal and interest payment. The loan usually becomes due when the last borrower dies, sells the home, or permanently moves out, or if the loan terms are not met.

You keep the title to your home. Closing costs apply, and on a HECM, which is the FHA-insured Home Equity Conversion Mortgage, there is also FHA mortgage insurance. Most upfront costs can often be financed into the loan, which reduces the cash you take out. I will walk through that on your numbers. I do not publish rates.

A reverse mortgage is not a government benefit, and it is not a way to erase other debts on its own. If that is how someone described it to you, stop and get a second look before you sign anything.

A HECM is the FHA program. The youngest borrower must be 62 or older, and the home has to be the primary residence. Private, proprietary options exist in some states and can have different age rules. I will tell you which program can even be offered on your house.

What you can use depends on the age of the youngest borrower, expected rates, any existing mortgage, closing costs, and, on a HECM, the maximum claim amount FHA will count. For FHA case numbers assigned on or after January 1, 2026, that HECM maximum claim amount is $1,249,125, according to HUD. That is a cap on the home value used in the calculation, not the cash you receive.

If you want the state-specific picture, use the Maine or Florida buttons at the top of this page, or go directly to reverse mortgage in Maine or reverse mortgage in Florida. For a balanced look at tradeoffs, including when a HELOC may fit better, read reverse mortgage pros and cons.

HUD-approved counseling is required before you can close a HECM. At the first conversation I will point you to HUD-approved counselors. You, any non-borrowing spouse, and any non-borrowing owner who has to be counseled must complete it. The counselor issues a certificate, and that certificate has to be in the file.

Counseling is a consumer protection, not a formality. Use it to ask about costs, what happens if you leave the home, how the balance grows, and what your heirs would need to do. You can find HUD-approved housing counselors through HUD at https://www.hud.gov/i_want_to/talk_to_a_housing_counselor.

Private reverse mortgages may have their own counseling or education rules. I will tell you what that file requires before you apply.

Yes, a reverse mortgage can sometimes be refinanced. Homeowners refinance a reverse mortgage to access additional equity, change the loan structure, or move to a program that fits better. A new HECM refinance still requires HUD-approved counseling, and the new loan still has to make sense on costs and proceeds. A refinance is not automatic, and it is not always a benefit. I will run the comparison honestly. Not everyone will qualify.

There is no required monthly principal and interest payment on a reverse mortgage. That sentence is incomplete without the next one. You must occupy the home as your primary residence, pay property taxes, pay homeowners insurance, pay HOA or condo dues if they apply, and maintain the home. If you do not, the loan can become due and payable, and the home can be at risk of foreclosure.

A set-aside can sometimes be built into the loan to help with taxes and insurance. It is not always required, and it is not a substitute for keeping those bills current. I will tell you if a set-aside is likely on your file.

The loan also typically becomes due when the last borrower dies, sells the home, or permanently moves out. Heirs can often sell the home, repay the loan from the sale, and keep any remaining equity, or they may be able to keep the home if they pay it off under the program rules. A HECM is generally a non-recourse loan, which means the borrower or the estate is not usually required to pay more than the home is worth if the home is sold to repay the loan. Heirs should not ignore lender notices.

I am based in Portland, Maine, and I originate owner-occupied reverse mortgages in Maine and Florida only. "Reverse mortgage near me" and "reverse mortgage lenders near me" searches will only be a fit if the property is in one of those two states. I am a mortgage broker, not a lender. I will tell you plainly which program I can offer on your house, and which one I cannot.

Text or call me at (207) 615-7770, or apply now. Bring the address, how you use the home, and a rough sense of what you still owe.