Reverse Mortgage Brokers

HECM stands for Home Equity Conversion Mortgage — the only reverse mortgage insured by the federal government through the FHA. The federal insurance guarantee means your funds are protected even if the lender goes out of business, and that you'll never owe more than the home is worth. The 2025 HECM lending limit is $1,209,750. For higher-value homes, proprietary reverse mortgages from private lenders can provide access to equity beyond that limit — some available to borrowers as young as 55.

To qualify for a HECM: the youngest borrower must be at least 62; the home must be the primary residence; the borrower must own the home outright or have significant equity; the home must meet FHA property standards; and the borrower must complete a HUD-approved counseling session before applying. Non-borrowing spouses under 62 have certain protections but are not on the loan. Proprietary reverse mortgages from some private lenders are available to borrowers as young as 55 for higher-value homes.

Before applying for a HECM, every borrower must complete a session with a HUD-approved independent counselor — a federal consumer protection requirement. The counselor is not affiliated with any lender and is required to give impartial guidance on how the product works, alternatives to consider, long-term implications for the borrower and heirs, and the borrower's rights. The session costs $125 to $200, can be done by phone or in person, and must be paid out of pocket before applying — it cannot be waived or financed into the loan.

Main costs: a 2% initial FHA mortgage insurance premium; an origination fee capped at $6,000 (negotiable — some lenders waive it); third-party costs including appraisal ($500–$800), title insurance, and recording fees; and an ongoing 0.5% annual MIP. Approximately 98% of borrowers finance closing costs into the loan. The only typical out-of-pocket cost at application is the $125–$200 HUD counseling fee. Origination fees are negotiable — ask lenders about reduced or waived fees.

When the last surviving borrower passes away or permanently leaves the home, the loan becomes due. Heirs typically have 6 to 12 months to settle the loan — by selling the home and using the proceeds to repay it, refinancing into a traditional mortgage, or paying it off with other assets. If the home sells for less than the loan balance, FHA insurance covers the difference — heirs are never personally liable for any shortfall. Any remaining equity after repayment goes to the heirs.

The loan balance grows over time as interest and fees accrue, reducing the equity available to heirs. If the borrower fails to pay property taxes, homeowner's insurance, or maintain the home, the lender can call the loan due. Moving to a care facility for more than 12 consecutive months may trigger repayment — even temporarily. A reverse mortgage is a significant long-term financial commitment and should always be evaluated alongside a financial advisor and, where estate planning is involved, an elder law attorney.

Look for FHA-approved lenders or brokers with dedicated reverse mortgage volume — not general mortgage lenders who occasionally handle them. Ask how many HECM transactions they've originated in the past year. Ask whether they work with proprietary products for higher-value homes. Ask how they coordinate with HUD counselors and whether they work alongside financial advisors and elder law attorneys. Be cautious of anyone who discourages the required counseling session or who pressures you to decide quickly — both are warning signs.