Short answer
A reverse mortgage lets a homeowner 62 or older borrow against their home's equity without making monthly mortgage payments. Most are Home Equity Conversion Mortgages (HECMs), insured by FHA. Interest and fees are added to the balance over time, and the loan is repaid when the last borrower sells, moves out or passes away, usually from the sale of the home. You still pay property taxes, insurance and upkeep.
Who can get a reverse mortgage?
For a HECM, the youngest borrower must be at least 62, and the home must be your principal residence. You need enough equity, and the lender checks that you can keep paying property taxes, homeowners insurance and any condo or association fees. Single-family homes, 2 to 4 unit homes you live in, and some condos and manufactured homes can qualify.
Before you apply, federal rules require a counseling session with a HUD-approved HECM counselor, who is independent of the lender. The counselor explains the costs and the alternatives, and you'll get a certificate that the lender needs.
How much can I borrow?
The amount depends on the age of the youngest borrower, the home's appraised value and current interest rates. For HECMs, FHA caps the home value it counts. For 2026 that cap is $1,249,125 everywhere in the country, so the value of a home above that line isn't counted. You can take the money as a lump sum, monthly payments, a line of credit, or a mix.
What does a reverse mortgage mean with New Hampshire property taxes?
Property taxes are often the largest cost of owning a home in New Hampshire, and they don't stop with a reverse mortgage. If taxes or insurance go unpaid, the loan can be called due. If the lender's review shows your budget is tight, it may set aside part of your loan to pay them for you. NH towns also offer relief that can help, such as the elderly exemption and veterans' credits; see NH property tax relief.
When does a reverse mortgage have to be repaid?
The loan comes due when the last borrower dies, sells the home, or moves out for more than 12 months in a row, for example into assisted living. It can also come due if property charges aren't paid or the home isn't kept up. HECMs are non-recourse: you or your heirs never owe more than the home is worth when it's sold. Heirs can keep the home by paying off the loan, or sell it.
A spouse who isn't on the loan may be able to stay in the home after the borrower dies if certain conditions are met, so it matters who signs. Ask the counselor to explain this for your situation.
What are the alternatives?
A reverse mortgage has upfront costs, including FHA mortgage insurance, and the balance grows over time, which leaves less equity for you or your heirs. A HELOC or cash-out refinance may cost less if you can make monthly payments, and selling and moving to a smaller home is another option. Tom can walk you through how each one could fit with your retirement income; see a mortgage in retirement.
Sources
- CFPB, What is a reverse mortgage?
- CFPB, Reverse mortgages (consumer tools)
- HUD, FHA announces 2026 loan limits (No. 25-145)
Checked November 2, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.