Question 1

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

Accepted Answer

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. The loan is repaid when you sell the home, move out permanently, or pass away. As a Seattle reverse mortgage broker, I shop multiple reverse mortgage lenders (Liberty Reverse Mortgage, Finance of America, Mutual of Omaha, Longbridge) to find the best fit for Washington homeowners.

Question 2

Am I eligible for a reverse mortgage in Seattle or anywhere in Washington?

Accepted Answer

To qualify in WA you generally need to be 62+, own your home outright or have significant equity, live in the home as your primary residence, and complete HUD-approved counseling (required by federal law). Most WA reverse mortgage borrowers use the FHA-insured HECM (Home Equity Conversion Mortgage) program.

Question 3

What's the difference between a reverse mortgage broker and a reverse mortgage lender?

Accepted Answer

A reverse mortgage lender funds one product. A reverse mortgage broker — that's me — shops 30+ investors to compare margins, fees, and loan limits. For most Washington borrowers, working with a local broker gets you a better deal than calling a single national reverse mortgage lender directly.

Question 4

How much can I borrow with a reverse mortgage in Washington?

Accepted Answer

Proceeds depend on your age (older = more), your home's appraised value, current interest rates, and the HECM lending limit ($1,209,750 for 2025). Higher-value Seattle, Bellevue, Mercer Island, and Eastside homes may benefit from a proprietary 'jumbo' reverse mortgage that goes well above the HECM limit — sometimes up to $4M in lendable value.

Question 5

Do I still own my home with a reverse mortgage?

Accepted Answer

Yes — you remain on title and continue to own the home. The reverse mortgage is simply a lien, like any other mortgage. You're still responsible for property taxes, homeowners insurance, HOA dues, and basic maintenance — failing those is the main risk.

Question 6

Can a reverse mortgage be used as a divorce mortgage solution in Washington?

Accepted Answer

Yes — and it's one of the most overlooked options. I've helped WA couples 62+ use a reverse mortgage to buy out a spouse's equity without creating a new monthly payment. It lets one spouse stay in the family home while the other receives their share of the equity in cash. Powerful tool in WA's community property framework.

Question 7

Can I use a reverse mortgage to buy a new home in Seattle?

Accepted Answer

Yes — the HECM for Purchase program lets WA buyers 62+ purchase a new primary residence using a reverse mortgage. You bring a down payment (typically 45–60% depending on age), and finance the rest with no monthly mortgage payment. Popular for downsizing, relocating closer to family, or moving into a single-level home.

Question 8

What are the downsides of a reverse mortgage?

Accepted Answer

Closing costs are higher than a traditional mortgage (origination fee + FHA mortgage insurance + standard third-party costs), your home equity decreases over time as the balance grows, and you must keep up with property taxes, insurance, HOA, and maintenance or risk default. A good broker walks you through every cost and alternative — including HELOCs and traditional refinances — before recommending one.

Question 9

How is a reverse mortgage different from a HELOC?

Accepted Answer

A HELOC requires monthly payments, income/credit qualification, and can be frozen or canceled by the lender. A reverse mortgage has no required monthly payment, lighter qualification (no DTI or income requirement in most cases), and the line of credit actually grows over time on the unused portion. For most WA homeowners 62+, the reverse mortgage is the more stable long-term tool.

Question 10

Why use a Seattle mortgage broker for a reverse mortgage instead of a national reverse mortgage lender?

Accepted Answer

National lenders only offer their own products and often run high-pressure call centers. As a local Seattle broker, I shop Liberty Reverse Mortgage, Finance of America, Mutual of Omaha, Longbridge, and others — comparing margins and upfront costs — so you get the best reverse mortgage in Washington for your specific situation. Plus you get a real person, local to WA, who answers the phone.

Question 11

Is a reverse mortgage safe? Can the bank take my house?

Accepted Answer

HECM reverse mortgages are FHA-insured and federally regulated. As long as you live in the home as your primary residence and stay current on property taxes, insurance, and HOA dues, the lender cannot force you out. It's one of the most regulated mortgage products in the country, and post-2014 reforms tightened consumer protections significantly.

Question 12

What happens to the home when I pass away?

Accepted Answer

Your heirs have a choice: sell the home and keep any remaining equity after the loan is paid off, refinance into a traditional mortgage to keep the home, or sign the deed back to the lender if there's no equity (non-recourse — they owe nothing beyond the home's value). HECM is non-recourse by federal law, so heirs are never personally liable for any shortfall.

Reverse Mortgage

Key Features

How it works

What this looks like in Washington

Pros

Cons

Common Questions

Related Loan Types

Popular WA markets for Reverse Mortgage

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