Your home. Your wealth. Your terms.
I'm Chris Nassief, a reverse mortgage specialist here in Northern Virginia and Maryland. This page is the whole picture: how a reverse mortgage works, what it costs, when it is NOT the right choice, a free 2-minute estimate, and exactly what the application involves. Read as much or as little as you like, then decide. No pressure either way.
- NMLS 205178
- Licensed in Virginia & Maryland
- Equal Housing Opportunity
- Homeowners 62+
- Estimates only, not a commitment to lend
Prefer to just read first? Get my free book, "The Truth About Reverse Mortgages" →
What a reverse mortgage actually is
A Home Equity Conversion Mortgage (HECM) is an FHA-insured loan for homeowners 62 and older. Instead of you paying the bank each month, the loan lets you draw on the equity you've built. You stay in your home and you keep the title. The loan is repaid later, typically when the last borrower leaves the home.
It is a loan, not a government benefit, and it must be repaid. That's exactly why the protections below matter.
- You keep the title. Always. Your name stays on the deed. The bank does not take your home. You remain the owner, with the same responsibilities: taxes, insurance, and upkeep.
- You can never owe more than the home is worth. HECM loans are non-recourse and FHA-insured. Neither you nor your heirs will ever owe more than the home's value when the loan is repaid.
- Independent counseling is required. Before any HECM closes, you meet with a HUD-approved counselor who works for you, not for me. I encourage it. An informed client is exactly who I want to work with.
- The money is not taxed as income. Loan proceeds are not income, so they are generally not taxable and do not affect Social Security or Medicare. Needs-based programs like Medicaid can be affected, which is worth a conversation.
Three steps, start to finish
Free estimate and a real conversation
Run the 2-minute estimate below. Then we talk. I learn your goals and tell you honestly whether a reverse mortgage helps or hurts your situation.
A plan built around you
Your age, your equity, your budget, and what you want the money to do. I put every number in writing, including all the costs, before you decide anything.
Counseling, application, closing
You complete independent HUD counseling, we file the application together, the home is appraised, and you close. Then you live in your home without a monthly mortgage payment.
Three kinds of reverse mortgage
Most of my clients use the FHA-insured HECM. Two others exist for specific situations. Which one fits depends entirely on you, and that is what the free consultation is for.
HECM Loan
The Home Equity Conversion Mortgage is the standard reverse mortgage, insured by the Federal Housing Administration (FHA). Convert home equity into cash with no monthly mortgage payment.
What you get
- FHA-insured, so your benefits are protected
- No monthly mortgage payments required
- Choose how you receive funds: lump sum, monthly payments, or a line of credit
- Non-recourse: you will never owe more than the home is worth
- Stay in your home as long as it remains your primary residence
- Use the funds for any purpose: paying off a mortgage, medical bills, home repairs, daily living
Who qualifies
- Youngest borrower at least 62
- Own the home outright or have significant equity
- Home is your primary residence
- Meet HUD's financial assessment (taxes and insurance history, income, credit)
- Complete HUD-approved counseling
Proprietary (Jumbo) Reverse Mortgage
Privately backed loans for homes worth more than the FHA lending limit. Common in McLean, Vienna, Great Falls, Potomac, and Bethesda, where the home is worth more than FHA will count.
What you get
- Higher loan limits than HECM, often up to $4 million in accessible equity
- No FHA mortgage insurance premiums
- No monthly mortgage payments
- Some programs accept condos and property types that HECM does not
Who qualifies
- Typically 62+, though some programs start at 55
- Home value generally above the FHA limit
- Primary residence with sufficient equity
- Meet the lender's own financial criteria
HECM for Purchase
Buy your next home with a reverse mortgage. You bring a large down payment, usually from the sale of your current home or savings, and a HECM finances the rest with no monthly mortgage payment.
What you get
- Downsize, right-size, or move closer to family in one transaction
- No monthly mortgage payment on the new home
- FHA-insured with the same non-recourse protection
- More buying power than paying all cash, because you keep part of your savings
Who qualifies
- Youngest borrower at least 62
- Down payment typically 40 to 60 percent of the purchase price, depending on age
- New home must become your primary residence within 60 days
- Complete HUD-approved counseling
Five ways to receive the funds
Two homeowners with the same house and the same age can end up in very different places depending on how they take the money. This choice matters more than most people realize.
| Option | How it works | Usually fits when |
|---|---|---|
| Lump sum | Take the available amount at closing. Only available on a fixed-rate HECM. Interest starts accruing on the full balance right away, and there is no reserve left over. | You need to pay off an existing mortgage or a large one-time expense. |
| Tenure payments | A fixed monthly amount for as long as you live in the home. It keeps coming even if the total paid out passes the original limit. Think of it as longevity insurance built into the loan. | You want predictable lifetime income to cover the gap in your monthly budget. |
| Term payments | Larger equal monthly payments for a set number of years you choose. When the term ends, payments stop, but you still live in the home with no mortgage payment. | You are bridging a defined gap, like delaying Social Security to 70 or waiting for a pension to start. |
| Line of credit | Draw only what you need, when you need it. Interest accrues only on what you draw. The unused portion grows every year at the loan's rate plus the insurance premium, whether or not the home's value rises. Repayments restore the available credit. | You do not need money today but want a growing safety net for later. This is the option most people have never heard of. |
| Modified combinations | Pair a monthly tenure or term payment with a line of credit held in reserve. Predictable income for the budget plus a growing reserve for surprises. | You want some of both. |
The retirement-planning angle
A standby line of credit can be a buffer against a bad market year. Instead of selling investments when they are down, some clients draw on the line of credit and let their portfolio recover. Financial planners call this managing "sequence of returns" risk. Whether it fits you is a conversation for you, me, and your advisor.
What a reverse mortgage costs
Real costs exist, and I would rather you see them here than hear about them at closing. Most are financed into the loan, so you usually do not write a check at closing. They still reduce the amount available to you.
| Cost | How it is set |
|---|---|
| Origination fee | 2% of the first $200,000 of home value plus 1% of the remainder. FHA sets a floor of $2,500 and a cap of $6,000. |
| Upfront FHA mortgage insurance | 2% of the maximum claim amount (your home value, up to the FHA limit). This is what buys the non-recourse protection for you and your heirs. |
| Annual FHA mortgage insurance | 0.5% of the loan balance per year. It accrues on the loan; there is no monthly bill. |
| Third-party closing costs | Appraisal, title, settlement, recording, and flood certification. In Northern Virginia and Maryland these typically run a few thousand dollars. My estimate below uses $3,500 as a placeholder. |
| HUD counseling | Typically around $125, paid to the independent counseling agency, not to me. Some agencies waive it for hardship. |
| Interest | Accrues on the balance you have drawn. No monthly payment is required, so the balance grows over time. That is the trade-off. |
Figures are typical ranges for illustration only. Your actual costs depend on your home, your loan, and current program rules, and are disclosed to you in writing before you commit to anything.
How interest rates change what you can get
The amount FHA lets you borrow is set by a table called the Principal Limit Factor. Two things move it: the age of the youngest borrower (older means more) and the expected interest rate (lower means more).
- Adjustable-rate HECM. The rate is tied to a Treasury index (the 1-year CMT) plus a margin and adjusts monthly or annually. Required for a line of credit or monthly payments.
- Fixed-rate HECM. One rate for life, but the money must be taken as a single lump sum at closing.
- The expected rate used for the FHA table follows the 10-year Treasury (10-year CMT) plus the lender's margin. When that rate drops, homeowners qualify for more.
The 2026 FHA HECM lending limit is $1,249,125. FHA will not count home value above that figure, which is why proprietary loans exist for higher-value homes.
See How Your Age and Home Value Add UpEligibility, in plain terms
- Age. The youngest borrower on title must be 62 or older. A younger spouse can often be protected as an "eligible non-borrowing spouse," which lets them stay in the home after the borrower passes. Ask me about this. It matters.
- Primary residence. You live in the home most of the year. Second homes and rentals do not qualify.
- Equity. You own the home outright or have enough equity that the reverse mortgage can pay off what you owe, with room left over.
- Property type. Single-family homes, 2 to 4 unit homes where you live in one unit, FHA-approved condos, and manufactured homes built after June 1976 on a permanent foundation. Co-ops generally do not qualify.
- Financial assessment. HUD requires me to confirm you can keep paying property taxes, homeowners insurance, and HOA dues. If that history is shaky, FHA may require a set-aside from the loan to cover them, which lowers the cash available.
- Counseling. A session with an independent HUD-approved counselor before the application can move forward.
Your responsibilities after closing
The loan stays in good standing as long as you:
- Live in the home as your primary residence
- Pay property taxes and homeowners insurance on time
- Pay HOA or condo dues if you have them
- Keep the home in reasonable repair
The loan becomes due when the last borrower passes away, sells, or moves out permanently, including being away for 12 consecutive months, for example in assisted living. Failing to meet the loan terms could result in loss of the home. That is the honest version, and it is why I only recommend this to people whose budget comfortably carries the house.
When a reverse mortgage is NOT the right choice
About a third of the people I meet with should not get one. Here's when I'll tell you no:
You plan to move soon
If this isn't the home you want to stay in for years, the upfront costs usually outweigh the benefit. A HELOC or a sale may serve you better.
The budget can't carry the home
You still pay taxes, insurance, and maintenance. If those are already a struggle, a reverse mortgage can put the home at risk, and I'll say so.
Someone not on the loan lives with you
An adult child or a partner who is not a borrower has no right to stay when the loan comes due. We talk about that up front, ideally with them in the room.
The myths, answered
"The bank takes your home."
"Your kids lose everything."
"It's a scam."
Warning signs of a reverse mortgage scam
Protect yourself, or a parent, from the bad actors:
- Pressure to sign today or "lock in" before a deadline
- Anyone asking you to put the proceeds into an annuity, an investment, or a home repair contract they recommend
- Being told it is a "government benefit" or "free money"
- A request to sign the deed over to someone else
- An "advisor" charging a fee to help you find a lender or a counselor
- A company you cannot find on NMLS Consumer Access
You can verify me there: The Mortgage Exchange Service LLC, NMLS 205178.
HUD counseling, explained
Before any HECM can close, FHA requires you to meet with a counselor from an independent, HUD-approved agency. The counselor does not work for me or any lender. Their job is to make sure you understand the loan, its costs, and your alternatives.
- Takes about an hour, by phone or in person
- Typically costs around $125, paid to the agency
- You receive a certificate that is valid for 180 days
- You are welcome to bring an adult child or advisor
I encourage every client to do it early. An informed client is exactly who I want to work with.
Find a HUD-approved counselor
Use HUD's official locator to find agencies that serve Virginia and Maryland, or call HUD's housing counseling line.
HUD HECM Counselor SearchHUD housing counseling line: (800) 569-4287
The Mortgage Exchange Service LLC is not affiliated with HUD or FHA. This page was not approved by HUD or any government agency.
The questions every smart client asks
Hearing a term you don't know? Every reverse mortgage term, explained in plain English →
What is a reverse mortgage?
How much money can I get?
Do I still own my home?
Are reverse mortgages safe?
What can I use the money for?
What happens to my heirs?
Can I still leave the home to my kids?
What if I move into assisted living?
Can I sell the home later?
Do I have to take a big lump sum?
Reverse mortgage or a HELOC?
What does it cost?
How much could a reverse mortgage give you?
Answer 7 quick questions and get a plain-English estimate of the funds you may be able to access, with the math shown step by step. No credit pull. No obligation. This is an estimate for education only, not an offer or commitment to lend.
Rather do this by phone? Call me at (703) 255-5810 or ask me to call you.
Start your application
You can start the application online right now, in about ten minutes, with no credit pull. It asks for the real numbers so I can prepare your actual quote before we talk. Here is exactly what happens and what to gather, so there are no surprises.
Start the application online
Property, what you owe, who is on title, income sources, and how you keep up with taxes and insurance. About ten minutes, no Social Security number, no credit pull. I review it the same business day.
Your real quote and a real conversation
I price your file with our lenders and put every number in writing: rates, costs, and what you can actually receive. Then we talk through it, including the reasons a reverse mortgage might not be right for you.
Counseling, formal application, closing
You complete independent HUD counseling. We finish the formal Uniform Residential Loan Application (Form 1003) together, the appraisal is ordered, and you close. The documents below keep that part moving.
Documents to gather
Most delays come from missing paperwork. Having these ready keeps a typical file moving in 30 to 45 days.
- Identity and age: government-issued photo ID for every borrower, Social Security card or award letter, and proof of age. Marriage certificate, divorce decree, or death certificate if relevant.
- HUD counseling certificate once you have it.
- Property: homeowners insurance declarations page, most recent property tax bill with proof of payment, deed, and any HOA or condo statement.
- What you owe: current mortgage or HELOC statements, and any recorded liens, judgments, or solar financing agreements. These are paid off first, from the proceeds.
- Financial assessment: two months of bank statements, Social Security and pension or annuity award letters, and pay stubs if you still work. Two years of tax returns if you are self-employed or have rental income.
- If applicable: a durable power of attorney or the complete trust document if the home is held in a trust. Bring these early; they are the most common last-minute delay.
Two ways to begin
Ready now? Start the online application. Prefer to talk first? Book a time. Either way, no pressure and real answers, including when the answer is no.
Start My Application Online Book a Free Consultationor call (703) 255-5810
The Mortgage Exchange Service LLC · 1934 Old Gallows Rd, Suite 350, Tysons, VA 22182 · Mon–Fri 9:00 AM–7:00 PM
Haven't run your estimate yet? Start there. It takes two minutes.
Ready for a real conversation about a reverse mortgage?
Free consultation. No pressure. Real answers, including when the answer is no.
All figures on this page are estimates for educational purposes only and are not an offer or commitment to lend. Reverse mortgages are loans that must be repaid, typically when the last borrower leaves the home; they are not government benefits. Borrowers must complete HUD-approved counseling. NMLS ID# 205178. Equal Housing Opportunity.