How much can I get from a reverse mortgage in the US?
A HECM reverse mortgage lets borrowers 62+ access a percentage of their home value (the Principal Limit Factor), which rises with age and falls with interest rates. In 2024 the home value used is capped at the $1,149,825 lending limit. A 70-year-old might access roughly 40-45% of value.
What are the requirements for a HECM reverse mortgage?
The youngest borrower must be at least 62, the home must be your primary residence, you must complete HUD-approved counseling, and you must keep up with property taxes, insurance, and maintenance. Any existing mortgage is paid off from the proceeds.
Can a reverse mortgage pay for long-term care?
Yes, for care received at home. Proceeds are tax-free and can fund in-home care, home modifications, or assisted living for one spouse while the other remains in the home. Note that a reverse mortgage becomes due if the borrower leaves the home for 12+ months, such as moving to a nursing home.
Does a reverse mortgage affect Medicaid or Social Security?
Reverse mortgage proceeds are loan advances, not income, so they do not affect Social Security or Medicare. However, funds you keep in the bank can count as assets for Medicaid, so timing and spend-down planning matter. Consult an elder law attorney.
How is a US reverse mortgage different from a Canadian one?
The US HECM is federally insured with a lending limit and mandatory counseling, available from age 62. Canadian reverse mortgages are private bank products available from age 55, without federal insurance, and can reach up to about 55% of home value.