If you’re approaching age 62, chances are you’ve already come across the topic of reverse mortgages, whether through mailers, online ads, or conversations with friends. Designed to help retirees achieve financial flexibility and peace of mind, this loan option can feel either inviting or overwhelming depending on how it’s presented.

As with any major financial decision, it’s important to focus on the facts—not the marketing. Here are some straightforward points to help you understand what a reverse mortgage actually involves.

1. Married Couples Can Both Be on the Loan

If both spouses are age 62 or older, they can be listed as co-borrowers on the reverse mortgage. This is a key protection—if one spouse passes away or moves permanently into an assisted living facility, the other can continue living in the home without disruption. The agreement remains unchanged as long as one borrower continues to occupy the home as their primary residence.

2. No Monthly Mortgage Payments

One of the most significant benefits of a reverse mortgage is that borrowers are not required to make monthly mortgage payments. Whether it’s a standard reverse mortgage or one used to purchase a home, the financial responsibility is limited to things like property taxes, homeowner’s insurance, HOA dues (if applicable), utilities, and basic upkeep. As long as the home remains your primary residence, no mortgage payments are due.

3. No Impact on Social Security, Medicare, or Pensions

Funds received from a reverse mortgage are considered loan proceeds, not income, and are therefore tax-free. This means they do not affect Social Security benefits, Medicare eligibility, or pension income. You also won’t need to report them as income on your tax returns.

4. You Keep Ownership of Your Home

Taking out a reverse mortgage does not mean giving up your home. The title stays in your name, and ownership remains entirely with you. Accessing the equity in your home doesn’t change who owns it—it simply allows you to use your home’s value to support your financial goals.

5. Flexible Options for Accessing Funds

Reverse mortgage funds can be accessed in several ways: as monthly payments, a line of credit, a lump sum, or as part of a home purchase. You can use the funds however you wish—whether it’s for travel, home upgrades, medical expenses, or just everyday living.

Through the Reverse Mortgage for Purchase program, you can even buy a new home and close both the home purchase and the reverse mortgage loan at the same time. This option is especially appealing for those wanting to downsize, relocate closer to family, or finally move into their dream retirement home.

Reverse mortgages are available to adults 62 and older throughout Colorado. If you’re considering this option, reach out to a trusted reverse mortgage lender to learn more and explore whether it’s the right fit for your needs and lifestyle.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists serving Fort Collins, Loveland, Greeley, Longmont, Dacono, Erie, Boulder, and surrounding areas across Colorado’s Front Range.  Click here to contact them and learn if reverse mortgage is right for you.

What Types of Homes Qualify for a Reverse Mortgage?

Reverse mortgages are a unique loan option available to homeowners aged 62 and older. This flexible financial tool is used by a wide range of individuals — from those needing to supplement a fixed income, to retirees looking to protect their assets, or even those wanting to buy a new home in retirement.

But while reverse mortgages can serve many purposes, there are specific requirements when it comes to the type of property involved.

What Types of Homes Are Eligible?

According to the Federal Housing Administration (FHA) under HUD, the home must meet certain criteria:

• A single-family home

• A 2- to 4-unit property, as long as the borrower occupies one of the units

• Select condominiums and manufactured homes that are HUD-approved

For those using a Reverse Mortgage for Purchase, the property must be a completed single-family or 2–4 unit home with a Certificate of Occupancy in place.

When Might a Home Not Qualify?

There are a few scenarios where a property may not meet reverse mortgage guidelines:

• If the home has very little equity, it may not qualify — although properties with existing mortgages often can.

• The property must be in good condition and well-maintained. Delinquent property taxes or neglected upkeep can be disqualifying factors.

• The home must be your primary residence. Second homes, vacation homes, or investment properties typically do not qualify.

The Bottom Line

Reverse mortgage funds can be accessed in several ways — as a lump sum, monthly payouts, line of credit, or even to purchase a home. If you’re considering this option, speak with a reverse mortgage specialist. They can help explore creative solutions tailored to your financial goals and personal needs.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado.  Click here to contact them and learn if reverse mortgage is right for you.

A very common concern among seniors and adult children when considering a reverse mortgage is how it will affect social security, medicare, and even certain pensions.  For many seniors, these benefits are a large part of their income. Fortunately, because the funds from a reverse mortgage are NOT considered taxable income, a borrower’s benefits will not be affected when taking out a reverse mortgage.

On the other hand, borrowers who have Medicaid, TANF, Food Stamps or SSI may see those benefits affected by this additional income.   Because these programs are government sponsored programs with strict approval guidelines based on all sources of income, even non-taxable income, there is a possibility the additional cash flow will need reported.  Other supplemental and assistance programs would need to be addressed on a case by case basis.  Working with a reputable reverse mortgage lender and required third party counseling will ensure all your questions are answered thoroughly and honestly.

Reverse mortgages are available to homeowners 62 and older.  The proceeds can be received as a lump sum, as monthly installments, or a reverse line of credit and can be used for any purpose the borrower sees fit.  This FHA insured loan allows the borrower(s) to live mortgage payment free.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.

Every month thousands of Americans make a decision to obtain a reverse mortgage, but where do they start? Here are my suggestions to begin the reverse mortgage process, as well as an outline of what to expect.

1. Research: Begin by researching reverse mortgages to understand how they work, their benefits, and potential drawbacks. Educate yourself on the eligibility criteria, loan types, repayment requirements, and any associated costs. This will help you make an informed decision.

2. Consult with Professionals: Consider consulting with a financial advisor or an elder law attorney who can review your financial situation and provide personalized advice. They can help you assess whether a reverse mortgage aligns with your long-term financial goals and explore any legal or tax implications.

3. Find Lenders: Identify reputable lenders who offer reverse mortgages. Look for those approved by the Federal Housing Administration (FHA) or other relevant regulatory bodies. Compare lenders based on their reputation, ties to the community, information, and customer reviews. It’s advisable to select a lender with specific experience in reverse mortgages.

4. Gather Information: Once you’ve chosen potential lenders, contact them to request information and application materials. They will provide you with details about their specific reverse mortgage products, requirements, and the application process. The reverse mortgage professional you choose should be easy to get a hold of, knowledgeable, and able to answer any and all questions.

5. Seek Counseling: Counseling is a mandatory step in the process and is designed to provide you with unbiased information and guidance. The counselor will evaluate your financial situation, discuss alternatives, and help you determine if a reverse mortgage is the right choice for you.

6. Application Process: Begin the application process with your chosen reverse mortgage professional and lender. You will need to provide various documents, including identification, proof of homeownership, income verification, and information about outstanding mortgages or liens on the property. The lender will guide you through the specific documentation requirements.

7. Home Appraisal: The lender will arrange for a professional appraisal of your home to determine its current market value. This step is necessary to calculate the maximum loan amount you may be eligible for.

8. Loan Approval and Closing: After reviewing your application, financial assessment, and appraisal report, the lender will decide whether to approve the loan. If approved, you will proceed to the closing process. During closing, you’ll sign the necessary documents, including the loan agreement and any other legal paperwork.

Remember to take your time, ask questions, and carefully review all the details before proceeding. It’s important to fully understand the terms and conditions of the reverse mortgage before making a decision.

Reverse mortgages are available to homeowners 62 and over, including married couples. Reverse mortgages are gaining in popularity among retirees from all walks of life.  A reverse mortgage for purchase option is available for those looking to purchase a new residence.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.

If you and your spouse are considering obtaining a reverse mortgage, it’s important to understand the long term effect it could have on either spouse once the other passes away, and feel confident any appropriate protections are in place.

What Married Couples Need to Know 

When applying for a reverse mortgage the amount of money you can receive is calculated according to the age of the youngest borrower.  The older the borrower, the more money is available from the lender.

If both homeowners are over the age of 62, both homeowners can be on a reverse mortgage loan.  If both spouses are on the loan, the loan continues if either passes away and will continue until both borrowers have passed.

Another scenario to consider is if a borrower obtains a reverse mortgage and then remarries.  If this was to happen, it wouldn’t be unheard of for the married couple to live in the home for 20 or more years before the borrower passes.  At this time the new spouse would not be protected under the existing reverse mortgage loan.  If you have reverse mortgage and you remarry, you could consider looking into refinancing the reverse mortgage and adding the new spouse to the loan.

And yet one more thing to note is the possibility one spouse needs to move out of the home into an assisted living facility due to health concerns.  If this happens, as long as the spouse that remains in the home is on the loan, they can continue under their current reverse mortgage.

Bottom line: If you are married and are considering obtaining a reverse mortgage, it is extremely important to work with a trusted and experienced reverse mortgage specialist who can easily answer all of your questions and address any concerns you may have.  Making sure both spouses are protected should be a lender’s top priority.

Jan and Kelsey are Reverse Mortgage Specialists serving the Erie, Dacono, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming.  Contact Jan and Kelsey to learn if a reverse mortgage is right for you.