Question 1

How does a reverse mortgage work?

Accepted Answer

A reverse mortgage (HECM) allows homeowners 62+ to convert home equity into cash without selling. Instead of making monthly payments to a lender, the lender pays you — as a lump sum, monthly payments, line of credit, or combination. The loan is repaid when you sell, move out permanently, or pass away. You retain full ownership and can stay in your home as long as you wish.

Question 2

Who qualifies for a reverse mortgage in Colorado?

Accepted Answer

To qualify, you must be 62 or older, own your home outright or have substantial equity (typically 50%+), live in the home as your primary residence, not be delinquent on federal debt, and complete HUD-approved counseling. The home must meet FHA property standards. Colorado condos, single-family homes, and 2-4 unit properties may all qualify.

Question 3

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes. You retain full title and ownership of your home throughout the life of the reverse mortgage. You remain responsible for property taxes, homeowner's insurance, HOA fees, and basic maintenance. The lender has a lien (like any mortgage) but cannot force you to move as long as you meet these obligations.

Question 4

How much can I receive from a reverse mortgage?

Accepted Answer

The amount depends on your age (older = more), your home's appraised value (up to the FHA lending limit of $1,149,825 in 2024), current interest rates, and the payout option you choose. Generally, borrowers can access 40-70% of their home's value. A line of credit option also grows over time if unused.

Question 5

What happens when a reverse mortgage borrower passes away?

Accepted Answer

Heirs have options: they can sell the home and keep any equity above the loan balance, refinance into a traditional mortgage to keep the home, or simply walk away with no personal liability even if the loan exceeds the home value (HECM loans are non-recourse). They typically have 6-12 months to make a decision.

Question 6

Are reverse mortgages safe and regulated?

Accepted Answer

HECM reverse mortgages are FHA-insured and regulated by HUD. Required consumer protections include mandatory independent counseling before application, non-recourse guarantee (you'll never owe more than the home is worth), and FHA insurance that guarantees payments even if the lender goes out of business.

Reverse Mortgage Colorado — HECM Loans for Seniors

Reverse Mortgage Benefits

No Monthly Payments

Stay in Your Home

FHA Insured

Non-Recourse Loan

Payment Options Available

Lump Sum

Monthly Payments

Line of Credit

Combination

Eligibility Requirements

Reverse Mortgage FAQ

Other Services

Colorado Communities

Explore Your Reverse Mortgage Options