Important updates and what Colorado seniors need to know

As a senior homeowner in Colorado, you may be hearing more about reverse mortgages — especially the Home Equity Conversion Mortgage (HECM) program. These government-insured loans offer a way to access home equity without having to sell or move out. At Reverse Mortgage Revolution, Kevin Guttman helps Colorado seniors understand these options clearly and confidently.

What is a HECM and how does it work?

The HECM is the only reverse mortgage insured by the Federal Housing Administration (FHA). It allows homeowners aged 62 and older to convert a portion of their home’s equity into tax-free cash. You can use the money for anything — covering living expenses, medical costs, or home improvements.

There are no monthly mortgage payments as long as you continue living in the home and stay current on property taxes, insurance, and basic maintenance.

How much can you borrow with a reverse mortgage?

The amount you may qualify for depends on several factors, including:

Age of the youngest borrower or non-borrowing spouse

The younger the borrower, the lower the loan amount — older borrowers typically qualify for more.

Current interest rate

Interest rates influence the total amount available to you, especially on adjustable-rate HECMs.

Appraised home value or FHA limits

The lower value between your home’s appraisal, the FHA mortgage limit, or the purchase price determines the loan size.

Can you buy a home with a reverse mortgage?

Yes. With a HECM for Purchase, you can use a reverse mortgage to buy a new primary residence. This is a great option if you’re downsizing, relocating closer to family, or moving into a more suitable home for retirement — all without taking on monthly mortgage payments.

You’ll need to cover the difference between the reverse mortgage proceeds and the home’s purchase price using your own funds.

Kevin can help you determine if this is a smart strategy based on your financial goals.

Adjustable-rate reverse mortgage changes every borrower should know

If you have an adjustable-rate reverse mortgage, your interest rate may be changing soon.

Why is this happening?

The LIBOR index — previously used for adjustable-rate HECMs — officially expired on June 30, 2023. It’s being replaced by the CME Term SOFR (Secured Overnight Financing Rate), a more stable and transparent benchmark selected by the FHA.

What do you need to do?

Nothing for now. Your lender will notify you of the change, and your loan terms will continue. If you’re unsure what this means for your loan, reach out to Kevin for guidance.

Be cautious of reverse mortgage scams

Sadly, scams targeting seniors are still very real. Some shady operators charge thousands of dollars for information that is free from HUD-approved resources. Others might try to pressure you into loans that don’t serve your needs.

Kevin Guttman is a Certified Reverse Mortgage Professional (CRMP) — one of fewer than 200 in the entire U.S. He follows a strict code of ethics and prioritizes transparency and client protection.

Common reverse mortgage questions Kevin can help you answer

  • Can I reverse a reverse mortgage?

  • Can I cancel a reverse mortgage after signing?

  • Can I refinance my current reverse mortgage?

  • Are reverse mortgages transferable to my spouse?

  • How do I pay off a reverse mortgage?

  • Where can I get the best reverse mortgage in Colorado?

Whether you are just beginning your research or already have a reverse mortgage, Kevin provides clear, honest answers.

Speak with Kevin Guttman today

If you’re considering a reverse mortgage in Colorado, speak with someone you can trust. Kevin Guttman has helped hundreds of seniors unlock their home equity safely and confidently.

Ready to Get Started?

Contact Kevin Guttman today for personalized guidance and discover if a reverse mortgage is right for you:

Explore your options confidently and secure a comfortable, financially stable retirement with Kevin Guttman, Denver’s trusted reverse mortgage expert.