How much can a reverse mortgage give you?
The amount of an FHA-insured reverse mortgage (HECM) read in HUD's own factor table, then every line of the HUD payment plan: mortgage insurance, origination fee, mortgage payoff, set-aside, first-year limit, and the balance year by year. No name, phone or address asked.
Cash you can use in the first 12 months
$78,640
Then $61,760 more after month 12, growing at 6.49 % a year while unused.
| Factor at age 70, 6.625 % | 0.386 |
| Maximum claim amount | $400,000 |
| Principal limit (line 1) | $154,400 |
| Upfront MIP, 2 % (line 3) | $8,000 |
| Origination fee | $6,000 |
| Other closing costs | $0 |
| Mortgage paid off (line 5) | $0 |
| Mandatory obligations (line 10) | $14,000 |
| First-year limit (line 21) | $92,640 |
| Net principal limit (line 25) | $140,400 |
Expected rate 6.65 % (10-year Treasury + margin), read as 6.625 % in HUD's table. Estimate, not a loan offer.
| Year | Age | Loan balance | Unused credit line |
|---|---|---|---|
| 1 | 71 | $14,936 | $149,788 |
| 2 | 72 | $15,935 | $159,804 |
| 3 | 73 | $17,000 | $170,489 |
| 5 | 75 | $19,350 | $194,051 |
| 10 | 80 | $26,744 | $268,204 |
| 15 | 85 | $36,964 | $370,692 |
| 20 | 90 | $51,089 | $512,345 |
| 25 | 95 | $70,611 | $708,127 |
| 30 | 100 | $97,594 | $978,724 |
HUD factor table in force · 2026 limit $1,249,125 · Treasury rates of the week ending October 16, 2026 · How we calculate · Who publishes this
2026 FHA lending limit
$1,249,125
Home values above it count for this amount. 2027 limit due in December 2026. The limit
Mortgage insurance
2 % + 0.5 %
Upfront on the claim amount, then yearly on the balance. MIP in dollars
A HECM reverse mortgage lends against your home with no monthly payment: the amount is the lesser of the home value and the $1,249,125 limit of 2026, multiplied by a factor that HUD publishes for each age and expected rate. At 70, with an expected rate of 6.65 % (10-year Treasury at 5.15 % plus an example margin of 1.5 %), the factor is 0.386, so a $400,000 home gives a principal limit of $154,400. From that, $8,000 of upfront mortgage insurance and up to $6,000 of origination fee are taken, and you can use $78,640 in the first 12 months, 60 % of the principal limit minus those costs. The other $61,760 opens after a year and grows while unused: about $268,204 of unused credit after 10 years at today's rates. With $80,000 of mortgage to pay off, the costs pass half the principal limit and the first-year room falls to $15,440, 10 % of it. At 80, the same home gives $184,400.
HUD's principal limit factors around today's rates
The factor is the share of the home value (up to the $1,249,125 limit) that you can borrow. It rises with age and falls as the expected rate rises. These are rows of the HUD table in force since October 2, 2017; the full table, all ages from 18 to 99 and every rate from 3 % to 18.875 %, is on the factor table page. Full HUD table
| Age | 5.625 % | 6.125 % | 6.625 % | 7.125 % | 7.625 % |
|---|---|---|---|---|---|
| 62 | 0.376 | 0.351 | 0.328 | 0.307 | 0.287 |
| 65 | 0.397 | 0.372 | 0.349 | 0.328 | 0.308 |
| 70 | 0.433 | 0.409 | 0.386 | 0.365 | 0.345 |
| 75 | 0.461 | 0.438 | 0.415 | 0.394 | 0.375 |
| 80 | 0.505 | 0.482 | 0.461 | 0.441 | 0.422 |
| 85 | 0.564 | 0.544 | 0.525 | 0.507 | 0.489 |
| 90 | 0.631 | 0.614 | 0.598 | 0.582 | 0.566 |
Why most calculators give you one number and no costs
A reverse mortgage calculator on a lender's site is first a way to collect a phone number. Several ask for your name, address and phone before showing a figure; others show one amount and say in small print that costs are not included. HUD's own calculator is public, but it still carries the label of fiscal year 2018 and asks for the fields a loan officer fills in. See the HUD calculator.
The rules behind the amount are public and short. The lender takes the lesser of the appraised value and the national limit, the maximum claim amount. It multiplies it by the factor of the youngest borrower's age and the expected rate in HUD's table. From that principal limit come the 2 % upfront mortgage insurance, the origination fee, other closing costs and any mortgage to pay off. Then the first-year rule caps what you can take in the first 12 months. Every step is a line of the HUD payment plan form, and the calculator above prints those lines with their numbers.
What the amount does after closing matters as much. The balance grows each month by the note rate plus 0.5 % of annual mortgage insurance; so does the unused part of a line of credit, which is why a credit line left untouched for years can end up larger than the first-year amount. The table under the calculator shows both, year by year.
Your factor in the HUD table
Principal limit factor, age 66 at 6.625 %
0.357
| Expected rate entered | 6.65 % |
| Rate row of the table | 6.625 % |
| Age row of the table | 66 |
| Maximum claim amount | $275,000 |
Two cases are outside the arithmetic. If a mortgage balance is larger than what the HECM can pay, the difference is due in cash at closing, which the calculator shows. And if property taxes or insurance are a concern in the lender's financial assessment, part of the principal limit is set aside to pay them, which the set-aside calculator computes with HUD's formula.
How a HECM works
- How a reverse mortgage worksFrom counseling to closing, the growing balance and the day the loan is repaid
- Age requirementWho must be 62, how HUD rounds your age and what each year adds to the amount
- What a HECM loan isThe FHA reverse mortgage program: insurance, eligible homes and the six payment plans
- Reverse mortgage ratesThe expected rate that sizes the loan and the note rate that grows the balance
- HECM calculator, line by lineLines 1 to 25 of the HUD payment plan for your own numbers
- Reverse mortgage vs HELOCPayments, line growth, freezes and non-recourse: how the two credit lines are built
How much, and what it costs
- HUD principal limit factor tableThe HUD factor for every age and expected rate, in force since 2017
- Reverse mortgage costsEvery fee of a HECM in dollars, at closing and while the loan runs
- Mortgage insurance (MIP)The 2 % upfront and 0.5 % annual FHA premiums in dollars, and what they pay for
- Origination fee capThe lender fee allowed by 24 CFR 206.31, from $2,500 to $6,000
- Life expectancy set-aside (LESA)The share of the loan held back for taxes and insurance, by HUD formula
- First-year limit (60 % rule)What you can draw in the first 12 months, lines 17 to 21 of the HUD form
- HECM lending limit 2026$1,249,125 in 2026: what the national cap means for homes worth more
Taking the money
- Line of credit growthHow the unused HECM line grows at the note rate plus 0.5 %, year by year
- Fixed-rate lump sumThe single payout of a fixed-rate HECM, and the part of the principal limit it gives up
- Monthly payments: tenure and termTenure and term payments by age, with the HUD formula behind them
- Loan balance over timeInterest and 0.5 % MIP added every month: how fast the HECM balance grows and doubles
Your situation
- Non-borrowing spouseWhat a younger spouse off the loan costs, and the right to stay
- What heirs owePay, sell or hand back the keys: the 95 % rule and the notices
- HECM for PurchaseBuy a home with a reverse mortgage: the cash to bring by age
- HECM to HECM refinanceThe premium credit, the anti-churning test and the 5-year window
- With a mortgage still owedHow the HECM pays off the old loan at closing, and the cash left by size of debt
- HUD-approved counselingWho must attend, what the certificate is, which fees may come first, and when it can be waived
- Property taxes and insuranceThe bills a HECM leaves to you, the financial assessment, and what happens if one goes unpaid
- Taxes, SSI and reverse mortgagesWhat the IRS and the SSI rules say about HECM advances and interest
By age
- Reverse mortgage at 62The youngest borrower: lowest factor, longest set-aside, 456 months
- Reverse mortgage at 65Monthly payments at 65: tenure on 420 months, terms, and 62 compared
- Reverse mortgage at 70A credit line opened at 70 and what it reaches by 85 or 90
- Reverse mortgage at 75The taxes and insurance set-aside at 75, and the 183-day rule
- Reverse mortgage at 80The factor at 80, the largest first-year draw and the balance at 90 and 95
- Reverse mortgage at 85Payments for life sized on 180 months, against fixed-term payments
By home value
- Reverse mortgage on a $150,000 homeFixed charges on a small home, and the share of the loan they take
- Reverse mortgage on a $200,000 homeWhere the origination fee rate drops from 2 % to 1 %, and what the house gives
- Reverse mortgage on a $400,000 homeThe value where the origination fee hits its cap, age by age
- Reverse mortgage on a $750,000 homeA costly home under the limit: first-year dollars and a large payoff
- Reverse mortgage on a $1,249,125 homeThe 2026 limit itself: the largest HECM amount at each age
- Reverse mortgage above the FHA limitHomes worth more than $1,249,125: what counts and what heirs keep
Before you talk to a lender
Who can get a HECM
Every borrower must be at least 62, own the home or have a small mortgage the loan can pay off, live in it as a principal residence and complete counseling with a HUD-approved counselor before applying. A spouse under 62 can be named as an eligible non-borrowing spouse; the factor then uses that spouse's age, which lowers the amount. Age rules and counseling each have a page.
What you keep paying
No monthly mortgage payment is due, but property taxes, homeowners insurance, flood insurance where required, HOA dues and upkeep stay yours. Missing them is the main way a HECM becomes due early. Taxes and insurance explains the set-aside and the rules a lender applies.
When the loan ends
The loan becomes due when the last borrower dies, sells or moves out for more than 12 months in a row. It is non-recourse: heirs who keep the home can settle it for the lesser of the balance and 95 % of the appraised value, and nobody owes more than the home is worth. What heirs owe shows the numbers.
Questions readers ask
How much money can I get from a reverse mortgage?
Multiply the lesser of your home value and the 2026 limit of $1,249,125 by HUD’s factor for your age and expected rate, then subtract the upfront mortgage insurance, fees and any mortgage paid off. In the first 12 months you can use up to 60 % of that principal limit, or the costs plus 10 % when costs are higher. The calculator shows each line.
What is the minimum age for a reverse mortgage?
For an FHA-insured HECM, every borrower must be 62 or older on the application. A younger spouse can stay in the home as an eligible non-borrowing spouse, but the amount then follows the younger age, which gives a lower factor. Proprietary reverse mortgages from private lenders set their own minimum age.
Why does the amount fall when rates rise?
HUD’s factor assumes the balance grows at the expected rate plus mortgage insurance until the loan ends. A higher rate makes the balance catch up with the home value sooner, so HUD lends a smaller share upfront. At 70, each step of one point in the expected rate lowers the factor by several hundredths, which on a $400,000 home is tens of thousands of dollars.
Do I have to pay off my mortgage first?
No. The HECM pays it off at closing, and that payoff counts as a mandatory obligation in the first year. If the payoff and costs are larger than what the principal limit allows, you bring the difference in cash. Once the old mortgage is gone, there is no monthly mortgage payment while you live in the home.
Is the money from a reverse mortgage taxable?
No. IRS Publication 936 says reverse mortgage payments are loan advances, not income, so the amount you receive is not taxable. The same publication treats the interest that accrues as interest on home equity debt and says it is generally not deductible. For SSI, Social Security counts a loan as neither income nor a resource in the month received, but cash kept into the next month can count as a resource.
Why do you ask for no name or phone number?
Because the amount does not depend on who you are, only on your age, your home value, the rate and the costs. The site lends nothing and has no lender to pass your details to. Everything is computed in your browser, and nothing you type is sent anywhere. A lender will need your details only when you apply.
Official texts behind this page
- HUD, HECM Principal Limit Factor tables (FY 2018 PLF Tables, revised), in force since October 2, 2017
- HUD, Mortgagee Letter 2025-22, 2026 HECM limits ($1,249,125)
- HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook, Update 18 (HECM chapters)
- 24 CFR part 206, Home Equity Conversion Mortgage Insurance
- 24 CFR 206.31, allowable charges and fees (origination fee cap)
- HUD, HECM Adjustable Rate Payment Plan form (Exhibit 1)
- Regulation Z, Appendix L to Part 1026, life expectancy table
- U.S. Treasury, daily par yield curve rates, 2026
- IRS Publication 936, Home Mortgage Interest Deduction (reverse mortgages)
Worked out by Radif Partners
Independent publisher of reverse mortgage arithmetic built from the HUD principal limit factor table and the FHA rules for HECM loans
Figures checked on · Editorial policy · Contact
Amounts follow the HUD factor table and FHA rules in force on the date shown; the figures of a lender’s written cost estimate and payment plan are the ones that count. Rates, margins and closing costs vary by lender. This is general information, not a loan offer or personal advice. We lend nothing and refer no one.
HECM rules of 2026, last read on