What is a reverse mortgage and how does it work in Washington?

A reverse mortgage is a loan for homeowners 62 and older that converts part of your home equity into cash — with no required monthly mortgage payment for as long as you live in the home as your primary residence. Instead of you paying the lender each month, the loan balance grows over time as interest accrues, and the loan is repaid in a single lump sum when you sell, permanently move out, or pass away. You stay on title, you keep your home, and any equity remaining after the loan is repaid goes to you or your heirs. Most Washington borrowers use the FHA-insured Home Equity Conversion Mortgage (HECM), which is federally regulated and capped at $1,209,750 for 2024. Higher-value Seattle, Bellevue, and Eastside homes may qualify for proprietary jumbo reverse mortgages that go well above the HECM limit. As a Washington reverse mortgage broker I shop multiple investors so you see real options instead of whatever a single national lender is pushing.