Category: Quick Facts

Reverse Mortgages and Taxes: What Homeowners Need to Know

Posted on by janjordan

reverse mortgage loveland colorado fort collins longmont greeley boulderAs tax season approaches, many seniors with a reverse mortgage begin to wonder how this unique loan might affect their tax filing. Reverse mortgages differ from traditional home loans in many ways, and taxes are one area where the differences stand out.

Here’s a clear, straightforward look at how a reverse mortgage interacts with common tax issues:

Are Reverse Mortgage Funds Taxable?

The good news: funds received from a reverse mortgage are not considered taxable income.

Why? Because the money you receive isn’t income earned, it’s a loan drawn from the equity you’ve built in your home. Whether you choose monthly payments, a lump sum, or a line of credit, the IRS views this as a loan advance, not income. That means no federal income tax is owed on the money you access.

Can You Deduct Interest Paid?

With traditional mortgages, interest payments may be deducted from your taxes each year. But reverse mortgages work differently. Because the interest on a reverse mortgage typically accrues over time and isn’t paid until the loan is due (usually when the borrower sells the home, moves out permanently, or passes away), the deduction can only be claimed at that time, not annually.

It’s an important distinction and one to keep in mind when planning long-term.

Property Taxes: Still Your Responsibility

One tax-related item that remains the homeowner’s responsibility is property taxes. Unlike traditional mortgages where an escrow account may handle tax payments, reverse mortgage borrowers must stay current on their own.

Failure to keep up with property taxes (or homeowners insurance) can put the loan at risk of default. However, reverse mortgage lenders will assess your financial situation before approval, and in some cases, a portion of your loan can be set aside to help cover these future costs.

Other Tax Considerations

Because reverse mortgage funds aren’t taxable, they don’t affect eligibility for Social Security or Medicare. However, they may impact need-based programs like Medicaid or Supplemental Security Income (SSI), depending on how the funds are used or held. It’s wise to speak with a financial advisor or benefits specialist if you rely on those services.

Final Thoughts

Reverse mortgages continue to grow in popularity as a financial tool for seniors age 62 and older. They allow homeowners to tap into the equity of their primary residence while eliminating monthly mortgage payments and maintaining ownership of the home. Loan proceeds can be used in a variety of ways, including monthly income, unexpected medical costs, or even purchasing a new home.

Understanding the tax implications is a crucial part of making an informed decision. Always consult with a tax professional and a reputable reverse mortgage specialist to ensure you’re on solid financial ground.

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.

FHA Increases 2026 HECM Reverse Mortgage Lending Limits

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reverse mortgage loveland fort collins greeley longmont westminster coloradoIn a move that may benefit many older homeowners, especially those in areas with higher property values like Colorado’s Front Range, the Federal Housing Administration (FHA) has announced a new lending limit for Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage insured by the government.

2026 HECM Limit Rises to $1,149,825

Starting January 1, 2026, the maximum claim amount for an FHA-insured reverse mortgage will rise to $1,149,825, up from $1,089,300 in 2025. That’s a 5.56% increase, reflecting ongoing home price appreciation across the U.S., including in high-demand areas like Fort Collins, Boulder, Loveland, and Denver.

This change is part of HUD’s annual adjustment process based on the national conforming loan limit set by the Federal Housing Finance Agency (FHFA). It ensures that reverse mortgage borrowing potential stays in step with home values.

Why This Matters for Retirees

For homeowners age 62 and older, the HECM reverse mortgage allows them to access their home equity without taking on a monthly mortgage payment. The loan proceeds can be received as a lump sum, monthly installment, line of credit, or even used to help purchase a new home, an increasingly popular strategy for downsizing or relocating in retirement.

The amount of money available through a reverse mortgage depends on several factors, including:

  • Age of the borrower (or youngest spouse)

  • Current interest rates

  • Home’s appraised value

  • FHA’s maximum lending limit

With the new higher cap, more homeowners, especially those with homes valued near or above the old limit, may now be eligible to access more equity than they would have under previous limits.

A Boost for Colorado Homeowners

Colorado has seen sustained home appreciation over the last decade, with many older adults now “house rich” but “cash poor.” Seniors in cities like Boulder, Longmont, and Fort Collins, where median home prices often exceed $600,000, may find that the 2026 adjustment gives them greater financial flexibility in retirement.

This is particularly helpful for:

  • Homeowners with high-value homes previously limited by the lending cap

  • Those considering a reverse mortgage for purchase of a new home

  • Couples hoping to delay Social Security to maximize benefits, using a reverse mortgage as a bridge

  • Seniors looking to age in place, make home modifications, or supplement fixed retirement income

The 2026 loan limit increase is a practical, policy-driven change. It’s worth discussing with a knowledgeable reverse mortgage specialist to understand what it could mean for your personal retirement plans.

Whether you’re just beginning to explore options or already weighing how to put your home equity to work, the updated HECM lending limit may open new doors to a more secure and flexible retirement.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists 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.

Understanding Colorado’s Senior Property Tax Exemption

Posted on by janjordan

For Colorado seniors living on fixed incomes, rising property taxes can be a growing concern—especially as home values increase year after year. Fortunately, the state offers meaningful relief through the Senior Property Tax Exemption, a program that eases the burden of property taxes for qualifying homeowners age 65 and over.

Whether you’re aging in place or exploring a reverse mortgage, this exemption can make a significant difference in your long-term retirement planning.

What Is the Senior Property Tax Exemption?

The Senior Property Tax Exemption is a benefit offered by the State of Colorado to reduce the amount of property tax paid by eligible seniors. The program exempts 50% of the first $200,000 of a home’s assessed value from taxation. That can translate to several hundred dollars in annual savings, depending on your county’s mill levy.

Once approved, the exemption automatically renews each year unless your residency or ownership changes.

Who Qualifies?

To be eligible for the exemption in 2026, you must meet all of the following requirements:

  1. Age: You must be at least 65 years old as of January 1, 2026.

  2. Ownership: You must have owned the home for at least 10 consecutive years prior to January 1 of the year you apply.

  3. Occupancy: The property must be your primary residence.

In some cases, surviving spouses of previously qualified seniors may also continue to receive the exemption.

This benefit is available for single-family homes, townhomes, and condominiums, as long as they are owner-occupied and meet the program criteria.

How Does This Impact Reverse Mortgage Borrowers?

If you have a reverse mortgage, you still own your home and are responsible for property taxes and homeowners insurance, just like any other homeowner. That means you are fully eligible to apply for and benefit from the Senior Property Tax Exemption.

In fact, for seniors using a reverse mortgage to supplement retirement income, reducing annual property tax expenses can further strengthen your ability to age in place comfortably and sustainably.

How to Apply

Applications are processed by your local county assessor’s office. While deadlines vary slightly by county, most require applications to be submitted by July 15, 2026 for the upcoming tax year.

You can download the form from your county assessor’s website or request a paper copy by mail. You’ll be asked to verify your age, ownership, and occupancy. Once approved, you do not need to reapply annually unless something changes with your ownership status or primary residence.

If you’re unsure whether you qualify, your local assessor’s office can help walk you through the process.

Final Thoughts

The Colorado Senior Property Tax Exemption is one of the most straightforward ways for retirees to reduce costs and extend the life of their retirement budget. If you’re over 65, have lived in your home for a decade, and plan to stay, this benefit could save you hundreds each year without requiring major changes to your lifestyle.

When paired with smart tools like a reverse mortgage, the exemption becomes part of a broader financial strategy designed to help you stay in your home, maintain independence, and enjoy peace of mind.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists 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.

Understanding the Appraisal Process for a Reverse Mortgage

Posted on by janjordan

Getting your home appraised may not sound like the most exciting part of the reverse mortgage process, but it’s an essential step and actually more straightforward than many people expect. For homeowners considering a reverse mortgage, the appraisal not only helps determine how much equity you can access, it’s also a required part of the loan process.

Here’s what to expect, and why it matters.

Why Appraisals Matter

A reverse mortgage allows homeowners aged 62 and older to convert a portion of their home equity into usable funds, often without having to make a mortgage payment. One of the key factors in calculating how much you can borrow is the current appraised value of your home. The higher the value, the more equity may be available to you.

How the Appraisal Process Works

Once you’ve met with a reverse mortgage specialist and submitted your application, the lender will arrange for a licensed appraiser to visit your home. They’ll contact you directly to schedule the appointment.

The appraisal itself happens in three phases: inspection, research, and reporting.

Inspection
During the visit, the appraiser will walk through your home, noting condition, features, and layout. They’ll take photos—both of positive features and any areas needing repair. This gives you a heads-up if any issues need to be addressed before final approval.

Market Research
Next, the appraiser evaluates comparable home sales in your area and analyzes local market trends. They’ll review MLS data, county records, and tax assessments to determine what homes like yours are currently worth.

The Final Report
All this information is compiled into an official appraisal report. This is sent to your lender and used to update your reverse mortgage estimates. You’ll receive a copy for your records as well.

Getting Ready for the Appraiser

While you don’t need to do anything elaborate, small efforts can help ensure a smoother process—like tidying up the exterior, fixing obvious repairs, and making sure the appraiser has full access to all areas of the home.

The Bigger Picture

A reverse mortgage isn’t a one-size-fits-all loan. It can be structured in several ways: as a lump sum, a monthly payout, a line of credit, or even to help purchase a new home. The appraisal helps anchor this flexibility by providing a reliable measure of your home’s value, one that opens the door to a variety of personalized retirement solutions.

Jan Jordan and Kelsey Jorck are Reverse Mortgage Specialists 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.

What Happens to the Home After a Reverse Mortgage Borrower Passes Away?

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reverse mortgage colorado fort collins loveland greeleyOne of the most common concerns about reverse mortgages is what happens to the home after the last borrower passes away. Will the bank take it? Can the family keep it? The good news is the home stays in the family’s control.

Here’s what happens:

When the borrower dies, the home becomes part of the estate and is passed on according to the will or living trust. The heirs then have three options:

  1. Pay off the loan
    Heirs can choose to pay off the reverse mortgage—either with cash, life insurance, or other assets—and keep the home. Thanks to FHA insurance, they’ll never owe more than 95% of the home’s appraised value, even if the housing market has declined.

  2. Refinance with a new loan
    If heirs want to keep the home but don’t have the cash to pay off the loan outright, they can work with a mortgage broker to take out a conventional loan in their own name.

  3. Sell the home
    If keeping the home isn’t the goal, the heirs can simply sell it. The reverse mortgage will be paid off from the proceeds, and any remaining equity goes to the family.

If there are no heirs—or if the heirs don’t want the property—no one is personally responsible for the loan. The lender will sell the home, and again, thanks to FHA insurance, there is no debt passed on to the family.

One final note: lenders typically allow up to 12 months to settle the loan after the borrower’s passing, usually granted in three-month extensions, as long as the family stays in communication.

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 Married Couples Should Know Before Getting a Reverse Mortgage

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reverse mortgage loveland fort collins greeley longmont westminster coloradoIf you and your spouse are thinking about getting a reverse mortgage, it’s important to understand how the loan could impact either of you over time, especially in situations where one spouse passes away, moves out for health reasons, or enters the picture later in life. These are real-life scenarios, and being prepared for them can make all the difference in protecting your home and peace of mind.

First, let’s talk about how eligibility works. The amount you can borrow with a reverse mortgage is based on the age of the youngest borrower. The older you are, the more you can typically access. That’s why, when both spouses are 62 or older, it’s usually a good idea to include both of them on the loan. If both names are on the reverse mortgage, the loan continues without interruption when one spouse passes away. The surviving spouse can stay in the home under the original terms until they no longer live there.

But there are other situations to think through. For example, what happens if someone gets a reverse mortgage and later remarries? Let’s say the new couple lives in the home together for many years. If the spouse who originally took out the loan passes away, the new spouse, who wasn’t on the loan, may not have the right to stay in the home. That’s why it’s crucial to consider refinancing and adding the new spouse to the loan if this situation applies to you.

There’s also the possibility that one spouse may need to move into assisted living due to health reasons. In that case, as long as the other spouse is still living in the home and is listed on the loan, the reverse mortgage remains active. The loan only becomes due when the last borrower leaves the home for 12 months or more, or passes away.

Reverse mortgages can offer great flexibility, but married couples need to be especially thoughtful. Talking with an experienced reverse mortgage specialist can help ensure that both spouses are fully protected and that no one is left in a vulnerable position down the road. A good lender should be ready to answer these questions clearly and make your long-term security their top priority.

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.

Reverse Mortgage in Colorado: 5 Essential Facts You Should Know

Posted on by janjordan

Reverse Mortgage Loveland Fort Collins ColoradoIf 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 to Expect from a Reverse Mortgage Appraisal

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reverse mortgage loveland fort collins greeley longmont westminster coloradoGetting something you care about evaluated under a microscope doesn’t always sound appealing—but when it comes to reverse mortgage loans, the appraisal process is both essential and beneficial. Not only is an appraisal required by lenders, it also plays a key role in determining how much funding you may be eligible to receive. The good news? The process is straightforward and easy to navigate.

Step 1: Start with Your Application

Once you’ve spoken with a qualified reverse mortgage specialist and decided to move forward, you’ll submit your application. From there, the lender will arrange for a professional appraiser to evaluate your home. The appraiser will contact you directly to schedule a convenient time for the visit.

Step 2: The Three-Part Appraisal Process

The appraisal itself involves three main stages: the inspection, the research, and the final report.

Inspection

During the scheduled visit, the appraiser will walk through your home—often taking photos and notes about features that contribute to its value. If any issues are spotted, such as needed repairs, they may also be documented. This gives you a heads-up on anything that could impact the appraisal and possibly a chance to correct it.

Research

After the visit, the appraiser will dig into various data sources to help determine your home’s current value. This research typically includes recent home sales in your area, multiple listing services, tax assessor’s records, and other relevant public data. These details help paint a complete picture of your home’s market value.

The Final Report

All findings from the inspection and research are compiled into an official appraisal report. This document includes photographs (if taken), property details, and comparable sales. The report is submitted to your lender, who will provide you with a copy along with updated reverse mortgage figures based on the appraised value.

Get Ready in Advance

You can take simple steps to prepare your home for an appraisal and make the process even smoother. For helpful tips, check out my article on how to prepare your home for an appraisal [click here].

Understanding the Bigger Picture

A reverse mortgage is a unique loan available to homeowners age 62 and older, including married couples. It allows you to tap into your home’s equity while eliminating monthly mortgage or loan payments. Funds can be accessed in various ways: a lump sum, monthly payments, a line of credit, or even to purchase a new home.

If you’re considering your options, talk with your reverse mortgage specialist. Together, you can explore creative solutions tailored to your lifestyle, financial needs, and future plans.

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.

Can Your Home Qualify for a Reverse Mortgage? Let’s Find Out

Posted on by janjordan

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.

The Reverse Mortgage Impact On Social Security, Medicare & Pension

Posted on by janjordan

reverse mortgage loveland fort collins greeley longmont westminster coloradoA 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.