How Much Can You Borrow with a Reverse Mortgage?

One of the first questions homeowners ask when considering a reverse mortgage is simple: How much can I actually borrow? The answer depends on a few key factors, including your age, home value, current interest rates, and the type of reverse mortgage you choose.

For retirees looking to stay in their homes while improving cash flow, understanding how these factors work together is the first step toward making a confident decision.

How a Reverse Mortgage Works

A reverse mortgage, officially known as a Home Equity Conversion Mortgage (HECM), allows homeowners aged sixty-two or older to convert a portion of their home equity into usable funds without monthly mortgage payments.

Unlike a traditional loan, you are not borrowing based on your income or credit score alone. Instead, the amount you can access is determined by your home’s value and the share of equity you have built. The funds you receive can be taken as a lump sum, a line of credit, or monthly payments — depending on your goals.

What Determines How Much You Can Borrow

Several factors influence the total amount available through a reverse mortgage. These include:

1. Your Age
The older you are, the more you may be eligible to borrow. Lenders use age as a factor because it affects the estimated length of the loan. For example, a seventy-five-year-old homeowner will typically qualify for a higher percentage of their home’s value than someone who is sixty-two.

2. Your Home’s Value
The appraised value of your home is central to calculating your available loan amount. The higher your property value (up to the FHA lending limit), the more equity you can access.

3. Current Interest Rates
Interest rates play a big role in how much you can borrow. Lower rates increase the amount available, while higher rates reduce it.

4. FHA Lending Limits
The Federal Housing Administration sets a maximum loan amount for HECM reverse mortgages. For 2025, the limit is $1,209,750. Even if your home is worth more, that number serves as the cap for federally insured loans.

Typical Reverse Mortgage Loan Amounts

While every situation is unique, most borrowers can access between 40% and 60% of their home’s appraised value, depending on the factors above.

For example, if your home is valued at $500,000, you could typically borrow around $200,000 to $300,000 through a reverse mortgage. The exact figure would depend on your age and current interest rates at the time of application.

These funds can then be used for any purpose — from covering living expenses and paying off existing debt to making home improvements or supplementing retirement income.

What Happens to the Remaining Equity

Many homeowners are pleased to learn that a reverse mortgage does not mean giving up all of their home equity. You continue to own the home and maintain title. Any remaining equity after the loan is repaid still belongs to you or your heirs.

This structure provides flexibility and financial peace of mind. It also ensures that your estate retains control of the home when the time comes to sell.

Why Work with a Certified Reverse Mortgage Professional

Because every homeowner’s situation is different, working with an experienced professional is essential. Kevin Guttman, a Certified Reverse Mortgage Professional (CRMP) based in Colorado Springs, helps retirees understand how much they can borrow and whether a reverse mortgage aligns with their long-term goals.

Kevin’s approach is transparent, educational, and personalized, ensuring you have clear information before making any decisions.

The Bottom Line

The amount you can borrow with a reverse mortgage depends on several factors, including your age, home value, and interest rates. Most retirees can access between forty and sixty percent of their home’s value while keeping ownership and control of their property.

To find out exactly how much you could qualify for, schedule a conversation with Kevin Guttman, Certified Reverse Mortgage Professional in Colorado Springs. Kevin will walk you through your numbers, answer questions, and help you decide whether a reverse mortgage is the right fit for your retirement.

Ready to learn how much you can borrow?
Contact Kevin Guttman today through ReverseMortgageRevolution.com for a free, no-pressure consultation and personalized estimate.

Final Thought

A reverse mortgage can be a safe, flexible, and empowering solution — when it’s the right fit. Whether you want to reduce financial stress, eliminate payments, or simply enjoy more comfort in retirement, understanding how a reverse mortgage works is the first step.

Have questions? Kevin Guttman is here to help. As a Certified Reverse Mortgage Professional licensed in 18 states HI, WA, OR, CA, ID, UT, AZ, CO, NM, KS, OK, TX, TN, AL, FL, MI, OH, and PA. Get in touch today for a free quote in minutes. Kevin offers clarity, transparency, and personalized advice you can count on.