There's no single percentage that applies to everyone. With a Home Equity Conversion Mortgage (HECM), three things set the amount you can access: your age, current interest rates, and your home's value. Knowing how they work together tells you a lot before you ever talk numbers with an advisor.
The short version
| What goes into the number | How it moves your amount |
| Age of the youngest borrower (or eligible non-borrowing spouse) | Older generally means more |
| Expected interest rate | Lower rates generally mean more |
| Home value, up to the 2026 FHA limit of $1,249,125 | Higher value means more, up to the limit |
| Existing mortgage balance | Paid off first, out of what you can access |
Your age and today's rates
HUD sets the share of your home's value you can borrow using the age of the youngest borrower and the expected interest rate. The older the youngest borrower, the larger the share. When rates are lower, the share goes up too.
That means two neighbors with identical homes can qualify for different amounts. A couple where one spouse is 64 will typically have access to less than a single 80-year-old homeowner.
Your home's value and the 2026 limit
For 2026, the most home value a HECM can count is $1,249,125, up from $1,209,750 in 2025. The new limit applies to loans with FHA case numbers assigned on or after January 1, 2026.
If your home is worth less than that, the appraised value is used. If you're buying a home with a reverse mortgage, it's the lower of the appraised value and the purchase price. Homes worth more than the limit may qualify for a private “jumbo” reverse mortgage, which isn't FHA-insured and has its own terms.
What comes out first
The amount you qualify for isn't all spending money. A few things are paid from it first:
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Any existing mortgage. It has to be paid off, which is exactly how many people eliminate a monthly payment.
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Upfront mortgage insurance. This is 2% of the home value used for the loan, and it's what makes the loan non-recourse.
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Closing costs and the origination fee. These can usually be financed into the loan rather than paid out of pocket.
In the first year, you can generally draw up to 60% of what you qualify for. If more is needed to pay off an existing mortgage, the limit adjusts to cover it.
How you can take it
You choose how the money arrives, and you can combine options:
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A line of credit, where the unused part grows over time
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Monthly payments for as long as you live in the home, or for a set number of years
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A lump sum at closing, available with a fixed rate
Frequently asked questions
Does my credit score decide how much I get?
No. Age, rates and home value set the amount. A financial assessment checks that you can keep up taxes and insurance, and it may set aside part of the loan for them.
Do I have to take all the money at once?
No. Many people leave most of it in a line of credit and draw only when they need it.
Can I use a reverse mortgage to buy a new home?
Yes. A HECM for Purchase lets you buy your next home with no monthly mortgage payment. See Moving Without the Monthly Bill.
Want your actual numbers?
Our eligibility check takes a few minutes and gives an advisor what they need to run them for you. Prefer to talk? Call 385-340-3880.
This article is for educational purposes and is not financial advice. A reverse mortgage is a loan that must be repaid. Consult a licensed advisor and complete HUD-required counseling before proceeding.