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How much can I get from a reverse mortgage?
In this article:
Quick Answer: How much you can get from a reverse mortgage depends on factors such as your age, home value, interest rates, loan type, and any existing mortgage balance.
Key Points
Older borrowers, higher home values, and lower interest rates may increase the amount available, while an existing mortgage balance may reduce proceeds.
How you choose to receive funds—such as a lump sum, line of credit, or monthly payments—may affect how much you can access over time.
Costs and requirements—such as closing costs, mortgage insurance, and potential LESA set-asides—may reduce the amount available at closing.
For many homeowners, a reverse mortgage raises a practical question: how much of your home’s value may be available to access?
The answer depends on several moving pieces—your age, your home’s value, current interest rates, and how you choose to receive the money. Even borrowers with similar homes may see different results, since factors like age and interest rates vary from person to person.
Understanding how these variables work together may give you a clearer sense of what to expect—and whether a reverse mortgage fits into your broader financial plans. Before diving into those details, it helps to start with the basics.
How does a reverse mortgage work?
A reverse mortgage is a type of home loan that allows homeowners, typically age 62 and older, to convert a portion of their home equity into cash. Borrowers may receive loan proceeds as a lump sum, monthly payments, a line of credit, or a combination of these options.
Unlike a traditional mortgage, there are no required monthly mortgage payments. Instead, the loan balance increases over time as interest and fees are added. Borrowers must continue to meet loan obligations, including paying property taxes, maintaining homeowners insurance, and keeping the home in good condition while living in the home as their primary residence.
The loan is typically repaid when the borrower sells the home, moves out, passes away, or no longer meets the loan requirements.
There are different types of reverse mortgages. The most common is a home equity conversion mortgage (HECM), which is insured by the Federal Housing Administration (FHA). Some lenders also offer proprietary (or jumbo) reverse mortgages, which may be available for higher-value homes and may have different eligibility requirements.1
→ Learn more: What is a reverse mortgage and how does it work?
The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, and hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
What affects how much you can get from a reverse mortgage?
The amount you may be able to access isn’t fixed—it’s shaped by several key details. Some factors may increase the amount available, while others may reduce it. Here’s how they break down:
Type of reverse mortgage
A HECM reverse mortgage is insured by the FHA and has lending limits based on a maximum claim amount set by the FHA. This means you cannot borrow more than the cap through a HECM, even if your home is worth more.1
In contrast, proprietary or jumbo reverse mortgages are offered by private lenders and are not subject to the same federal limits. These loans may allow homeowners with higher-value properties to access a larger portion of their equity, depending on the lender and loan terms.
There are also single purpose reverse mortgages, generally offered by local governments or non-profits. These types of loans are often designed for a specific purpose, such as repairs or property taxes, so the loan types may be limited to the costs you need to cover.
To learn more, please visit the CFPB’s “Reverse Mortgage: A Discussion Guide.”
Age of the youngest borrower
Age is one of the most important factors in determining how much you may be able to receive from a reverse mortgage. In general, older borrowers may be able to access a larger portion of their home equity because the loan is expected to be repaid over a shorter period of time.
Lenders use a calculation called the principal limit factor (PLF), which helps determine the principal limit, or how much you may be able to borrow. The PLF is based primarily on your age and current interest rates. In general, a higher PLF may allow you to access a larger portion of your home equity.
If there is more than one borrower on the loan, lenders typically base the calculation on the age of the youngest borrower. This may reduce the amount available compared to a single, older borrower, since the loan is expected to remain outstanding for a longer period.
It’s also important to consider the role of a non-borrowing spouse. In some cases, a spouse who is not listed as a borrower may still be able to remain in the home after the borrower passes away, provided certain eligibility requirements are met. However, the presence of a non-borrowing spouse may affect how the loan is structured and how much equity may be available to access.
→ Read more: A non-borrowing spouse guide to reverse mortgage.
FHA lending limit1
For HECMs, the amount you may be able to borrow may also be influenced by the FHA lending limit, sometimes referred to as the maximum claim amount.
In 2026, the FHA lending limit is $1,249,125. This means the calculation is based on your home’s value up to that amount—even if your home is worth more.
This cap applies only to HECMs. Proprietary, or jumbo, reverse mortgages are not subject to FHA lending limits and may allow homeowners with higher-value properties to access more equity, depending on the lender and loan terms.
Home value and equity
The amount you may be able to access depends in part on your home’s value and how much equity you have built. Lenders typically require an appraisal to estimate your home’s current market value. In general, higher home values and greater equity may increase the amount you’re able to access.
Lenders also consider risk, often using the loan-to-value (LTV) ratio, which compares the loan amount to the home’s value. A lower LTV generally indicates less risk and may allow you to access a larger portion of your equity.
Because home values and equity levels vary, this factor may significantly affect your available proceeds. Most borrowers need a substantial amount of equity to be eligible, although requirements may differ by lender and loan type.
Distribution type
The way you choose to receive your funds—often called the distribution or payment option—may affect how much you can access from a reverse mortgage over time.
Borrowers may receive funds as a lump sum payment, line of credit, or term or tenure payments. Each option works differently:
- A lump sum provides immediate access to funds but may limit how much you receive upfront depending on the loan structure.
- A line of credit offers flexibility, allowing you to draw funds as needed, and unused funds may grow over time, depending on the loan terms.
- Term or tenure payments provide a steady stream of income, which may be helpful for ongoing expenses.
Because each distribution type affects how and when funds are received, it may also play a role in how much of your available proceeds you ultimately access.
Interest rates
Reverse mortgages may have either a fixed interest rate or an adjustable (variable) interest rate, depending on the loan type and how you receive your funds. Fixed rates are typically associated with lump-sum payouts, while adjustable rates are more commonly used with options such as a line of credit or ongoing payments.
In general, lower interest rates may allow borrowers to access a larger portion of their home equity, while higher rates may reduce the amount available, since interest rates affect how quickly the loan balance grows over time. For adjustable-rate loans, rates may change based on market conditions, which could influence how the balance increases.
Closing costs and fees
Closing costs and fees vary by lender and loan type and may include items such as origination fees, appraisal costs, title services, and mortgage insurance premiums (MIPs) for HECMs.
Some borrowers may choose to roll these expenses into the loan balance, meaning they are paid using loan proceeds rather than out of pocket. This may reduce the amount of cash available at closing. Borrowers who prefer to preserve more of their available proceeds may instead pay certain fees upfront, depending on the loan terms.
In most cases, some out-of-pocket expenses—such as the appraisal fee and required counseling—are due before closing, although this may vary based on the lender and specific circumstances.
Because these costs differ, reviewing all fees carefully may help you better estimate how much you may receive when comparing reverse mortgage options.
Existing mortgage balance
In most cases, any existing mortgage balance must be paid off using the proceeds from the reverse mortgage at closing. This means that a portion of the available funds will first go toward satisfying that debt before any remaining proceeds are available to you as cash.
Because of this, borrowers with a higher remaining mortgage balance may have less cash available, while those with little or no existing mortgage debt may be able to access more of their home equity.
Understanding your current loan balance is an important step in estimating how much you may receive.
LESA requirements
As part of the reverse mortgage process, lenders typically conduct a financial assessment to evaluate whether you can meet ongoing loan obligations, such as paying property taxes, maintaining homeowners insurance, and keeping the home in good condition.
If the lender identifies a potential risk, they may require a life expectancy set-aside (LESA), which reserves a portion of the loan proceeds to cover certain property-related costs—such as property taxes and homeowners insurance—over time.
Because these funds are set aside rather than paid directly to you, a LESA may reduce the amount of proceeds available at closing. In some cases, you may still need to make separate arrangements to cover any remaining expenses.
Understanding whether a LESA applies to your situation may help you better estimate how much you may be able to receive.
The table below summarizes how these elements may influence your available proceeds.
| Factor | How it may affect your loan amount |
| Age | Older borrowers may be able to access more equity |
| Home value and equity | Higher home values and greater equity may increase available proceeds |
| Loan type | Jumbo loans may allow access to more equity than HECM loans |
| FHA lending limit¹ | Limits the amount available for HECM loans |
| Distribution type | May affect how much you can access upfront versus over time |
| Interest rates | Lower rates may increase available proceeds |
| Current mortgage balance | Higher balances may reduce available proceeds |
| Closing costs and fees | May reduce available proceeds if included in the loan |
| LESA requirements | Set-asides may reduce available proceeds at closing |
Get an estimate with our reverse mortgage calculator
How much money you can access with a reverse mortgage depends on several factors, including your age, home value, loan type, and current interest rates. Because each situation is different, estimating your potential proceeds may be an important step in evaluating your options.
If you’re exploring whether a reverse mortgage could fit into your financial plans, Finance of America’s calculator may help you estimate your potential proceeds and compare how different factors may affect your results.
Taking time to understand your options—and how much you may be able to receive—could help you make a more informed decision about whether a reverse mortgage is right for you.
FAQs
What is a home equity conversion mortgage (HECM)?
A HECM is the most common type of reverse mortgage. It is insured by the FHA and available to homeowners age 62 and older. HECMs offer multiple payout options and include non-recourse protection, meaning you or your heirs will not owe more than the home’s value when the loan becomes due.1, 2
Do reverse mortgages offer a line of credit?
Yes. Many reverse mortgages, including HECMs, may offer a line of credit option. This allows you to draw funds as needed rather than taking all proceeds at once. In some cases, unused funds in the line of credit may grow over time, depending on the loan terms.
Do HECM reverse mortgages have fixed interest rates?
Some HECM reverse mortgages offer fixed interest rates, but typically only with lump-sum payout options. Other payment options—such as a line of credit or monthly payments—are usually associated with adjustable (variable) interest rates.
Can I get more from a jumbo reverse mortgage?
In some cases, yes. Proprietary or jumbo reverse mortgages are not subject to FHA lending limits, which may allow homeowners with higher-value properties to access more of their home equity. The amount available depends on factors such as home value, age, and lender terms.1
What is the 60% rule for reverse mortgages?
For HECM loans, the 60% rule limits how much of your available proceeds you may access during the first year. Generally, reverse mortgage borrowers may take up to 60% of the total available funds in the first 12 months, unless additional funds are needed to cover required obligations such as paying off an existing mortgage.
What determines how much you can get from a reverse mortgage?
The amount you may receive depends on several factors, including your age, home value, interest rates, the type of reverse mortgage, how you choose to receive funds, and any existing mortgage balance. These factors work together to determine your available proceeds.
What are the downsides of a reverse mortgage?
A reverse mortgage may reduce the amount of home equity available to you and your heirs over time, as interest and fees are added to the loan balance. You must also continue to meet loan obligations, including paying property taxes, homeowners insurance, and maintaining the home. If these obligations are not met, the loan may become due.
Will I still own my home with a reverse mortgage?
Yes. You retain ownership of your home as long as you meet the loan requirements, including living in the home as your primary residence and keeping up with property-related obligations.
When does a reverse mortgage need to be repaid?
A reverse mortgage is typically repaid when the borrower sells the home, moves out permanently, passes away, or no longer meets the loan obligations. Repayment is often made through the sale of the home or other available funds.
How can I estimate how much I may receive?
Because the amount varies by borrower, using a reverse mortgage calculator may help you estimate how much you may be able to access based on your age, home value, and location. This can be a helpful starting point before speaking with a lender.
What is a non-borrowing spouse in a reverse mortgage?
A non-borrowing spouse is a spouse who is not listed as a borrower on the reverse mortgage loan. In some cases, a non-borrowing spouse may still be able to remain in the home after the borrower passes away, provided certain eligibility requirements are met.
1These materials were not provided by HUD or FHA and were not approved by FHA or any government agency.
2 Non-recourse means that you, or your estate, can’t owe more than the value of your home when the loan becomes due and the home is sold.
Non-recourse means that if you default on the loan, or if the loan cannot otherwise be repaid, the lender cannot look to your other assets (or your estate’s assets) to meet the outstanding balance on your loan.
About the author
is a Senior Web Content Writer at Finance of America and a journalist with more than 20 years of experience specializing in business, and technology. Her work has been published in The Wall Street Journal, The Financial Times, and numerous other leading outlets.
Disclaimer
This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For tax advice, please consult a tax professional. For more information about whether a reverse mortgage fits into your retirement strategy, you should consult your financial advisor.
