A reverse mortgage can turn home equity into cash with no monthly payment, if you meet the rules. Here they are for 2026.
General information, not professional financial, tax, legal, or insurance advice. The Dreamy Leads Research is an editorial and data team, not a licensed advisor.
Chapters
- 0:05 Age and eligibility
- 0:18 Equity, and any existing loan
- 0:30 HUD-approved counseling
- 0:42 The financial assessment
- 0:58 Property and occupancy rules
- 1:09 The 2026 lending limit
- 1:18 What you actually receive
- 1:32 Can you lose the home?
- 1:45 How to apply
See your 2026 numbers
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Full transcript
Age and eligibility
Every borrower must be at least 62 years old, own the home, and live in it as a primary residence. The amount you can access rises with the age of the youngest borrower.
Equity, and any existing loan
You also need substantial equity, because a reverse mortgage pays off any existing mortgage first, out of your proceeds. What is left after that payoff is what you can actually draw.
HUD-approved counseling
Before applying you must complete a session with a HUD-approved counselor, who explains the costs, your obligations, and the alternatives. You receive a certificate the lender needs before anything moves forward.
The financial assessment
There is no traditional debt-to-income test, but lenders run a financial assessment to confirm you can keep paying property taxes, homeowners insurance, and upkeep. If the numbers are tight, the lender may set aside part of your proceeds for those costs.
Property and occupancy rules
The home must remain your primary residence, and you must keep it maintained. Move out for good, or let the property slide, and the loan can come due.
The 2026 lending limit
The HECM lending limit, the most home value used to calculate your proceeds, is $1,249,125 in 2026, up from $1,209,750 in 2025.
What you actually receive
Your proceeds are a slice of that home value, not all of it. The exact amount depends on the age of the youngest borrower and current interest rates: older borrowers and lower rates mean more.
Can you lose the home?
Yes, if you stop meeting the requirements. Stay current on property taxes, homeowners insurance, and maintenance, and keep the home as your primary residence, or the loan can become due and payable.
How to apply
Start with the HUD-approved counseling session, then pick a lender and complete the financial assessment. Compare more than one offer: fees and margins differ, and they change what you receive.
Frequently Asked Questions
What is the minimum age for a reverse mortgage?
You must be at least 62 years old to qualify for a HECM reverse mortgage, and every borrower on the loan must meet that age.
Is counseling required for a reverse mortgage?
Yes. You must complete a session with a HUD-approved counselor before applying for a HECM, and you receive a certificate the lender needs.
What is the reverse mortgage limit for 2026?
The 2026 HECM lending limit is 1,249,125 dollars, up from 1,209,750 dollars in 2025. Your actual proceeds depend on your age and current rates.
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