Can You Keep a Home With a Reverse Mortgage?

Yes, keeping the home is possible if you can satisfy the reverse-mortgage balance. Heirs commonly do this by paying it off with other funds or by refinancing into a traditional mortgage in their own name. As long as the loan is repaid within the servicer's timeline, the home stays in the family.

A helpful HECM rule

Because federally insured reverse mortgages are non-recourse, if the balance is more than the home is worth, heirs who want to keep it can typically purchase it for 95 percent of the current appraised value, with insurance covering the rest. That prevents an underwater balance from forcing a loss. If keeping the home is your goal, act promptly, get the payoff figure, and line up financing early. We can connect you with lenders experienced in these payoffs and refinances.