1,401,176 HECM reverse mortgages insured by FHA since 1989.
Your reverse mortgage options in about 2 minutes. No Social Security number or credit check.
Reverse mortgage question
No. Your home doesn't need to be paid off. A reverse mortgage pays off your existing mortgage and any other liens at closing, out of the loan itself. You do need enough equity that the reverse mortgage can cover those payoffs, and if it falls short, you'd bring the difference to closing from your own money or a gift. Whatever is left after the payoffs is yours to use.
This is a question that comes up all the time, and the short answer surprises a lot of people: no, your home does not need to be paid off to get a reverse mortgage.
I once worked with a gentleman who'd done a ton of research on reverse mortgages, and somewhere along the way he'd picked up the idea that his home had to be free and clear first. His plan was to have his son pay off his remaining mortgage before we closed. He was thrilled to learn that wasn't necessary. The reverse mortgage pays off your existing mortgage for you.
When a reverse mortgage closes, the first thing it does is pay off the existing liens against your home, like your mortgage and any home equity line. A HECM has to be in first position, so nothing can stay ahead of it.
Whatever is left after those payoffs is yours. You can take it as a lump sum, monthly payouts, a line of credit, or a mix, depending on your loan.
There are no required monthly mortgage payments once your old mortgage is gone. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
This is the part to check early. How much a reverse mortgage can provide depends on your age, your home's value, and interest rates. If you owe more than the loan can cover, you'd need to bring the difference to closing.
That money generally comes from your own savings, and in many cases a gift from a family member can help. What it generally can't come from is new borrowing. In most cases, you can't take out another loan to cover the shortfall on a HECM.
In the case I mentioned, the reverse mortgage covered most of his mortgage, and his son gifted the rest. Once it closed, he no longer had a monthly mortgage payment, and he planned to pay his son back over time.
Yes, but paying off your mortgage is treated differently. HUD's first-year limit allows more than the usual amount when you need it to pay off existing liens and other required costs at closing. So the first-year limit usually doesn't stop a payoff. I'll show you exactly how it shakes out on your numbers.
That depends on your age, your home's value, interest rates, and what you owe. The fastest way to find out is to get your estimate with your current mortgage balance included. Or see How Much Money Would I Be Eligible For?
If someone told you your home had to be paid off first, you're not alone, and you may have more options than you think. Call us at 530-888-6000 and let's run your numbers.
ZYNG Mortgage, Inc., NMLS #76801. A reverse mortgage has no required monthly mortgage payments and uses your home's equity. Fees, mortgage insurance and other costs can be added to the loan balance, and the balance grows over time as interest is added, so your equity typically decreases. When the loan becomes due, the home may need to be sold, or the loan repaid from other funds. Interest is not tax-deductible until it is paid, in part or in full. You keep title to your home and must keep paying property taxes, homeowners insurance and upkeep, and meet the other loan terms; not doing so can make the loan due and could lead to foreclosure.
This material is not from HUD or FHA and was not approved by HUD or a government agency.
HECM count at the top of this page: HUD data through September 2026 (source, opens in a new tab).
