How much can I get from a reverse mortgage? It depends mainly on the youngest borrower's age, expected interest rates and your home's value, counted only up to $1,249,125 (valid through Dec 31, 2026). FHA lends a percentage of that value, not all of it. Your existing mortgage and upfront costs come out first, and first-year draws are usually limited.
- The amount mainly depends on the youngest borrower's age, expected interest rates, and your home value (counted only up to $1,249,125, valid through Dec 31, 2026).
- Any existing mortgage is paid off first, and upfront costs are subtracted.
- In the first year you can usually take only part of the available amount.
- Only a licensed lender can quote real numbers. Any calculator, including ours, gives a rough range.
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Get your free guideWhat sets how much you can get?
A Home Equity Conversion Mortgage (HECM) doesn't lend against 100% of your home's value. FHA sets a principal limit: the maximum you can borrow. It is a percentage of your home's value, called the principal limit factor. That percentage depends on:
Curious about your own numbers? Rough range only, not a loan offer or pre-qualification. No sign-up, no credit check.
Try the estimate calculator- Age of the youngest borrower (or of an eligible non-borrowing spouse). The older the youngest person, the higher the percentage.
- Expected interest rate. Lower rates generally mean a higher percentage, and higher rates a lower one.
- Home value, up to the FHA limit. For FHA case numbers assigned Jan 1 through Dec 31, 2026, the HECM maximum claim amount is $1,249,125 nationwide (HUD Mortgagee Letter 2025-22). Value above that does not increase HECM proceeds.
- What has to be paid at closing, including any existing mortgage or liens, upfront FHA mortgage insurance, origination, and third-party closing costs.
A simple way to think about it
Our reverse mortgage calculator uses an approximate range of factors by age instead of HUD's exact table. The exact factor changes with interest rates, so a single precise number would be false precision.
How much can you take in the first year?
HUD limits how much you can draw in the first 12 months; it sets the exact percentages by notice (24 CFR 206.25(a)). Under current HUD guidance that is generally 60% of your principal limit, or, if more is needed to pay "mandatory obligations" such as your existing mortgage and closing costs, those obligations plus 10% of the principal limit (HUD Mortgagee Letter 2013-27; HUD Handbook 4000.1, section II.B.3.g). The rest becomes available after the first year, depending on the payout option you choose.
How can you receive the money?
- Line of credit. The unused portion grows over time at the same rate as the loan balance.
- Monthly payments, either for as long as you live in the home (tenure) or for a set number of years (term).
- Lump sum. This is typically the fixed-rate option.
- A combination of the above, usually with an adjustable rate.
Why can two neighbors get very different amounts?
Take two homeowners with the same home value. One is 63 with a $150,000 mortgage; the other is 80 with no mortgage. The 80-year-old will usually have a larger principal limit and much more left after closing, because none of it goes to a payoff. That's why our estimator asks for age, value, and balance together.
Do set-asides lower how much you can get?
Yes. Money set aside for taxes and insurance, repairs or servicing fees comes out of your principal limit, so less is left to draw.
Federal rules describe three set-asides: a Life Expectancy Set-Aside for property taxes and insurance, a repair set-aside of 150 percent of estimated repair costs, and a servicing-fee set-aside (24 CFR 206.19(f)). A lender may require a set-aside for taxes and insurance after the financial assessment, or you can choose one (24 CFR 206.205(b)). Ask the lender to show any set-aside as its own line on your figures.
Rules in this section checked against the current eCFR text on October 31, 2026.
See a rough estimate for your home
Our estimate calculator takes about 30 seconds. It shows a rough range for your home, not a loan offer or pre-qualification. No sign-up and no credit check.
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Frequently asked questions
How much equity do I need for a reverse mortgage?
There is no single published minimum. You need enough equity that the HECM principal limit covers any existing mortgage and closing costs. A lender can only tell you for sure after reviewing your age, current rates, and appraisal.
Does a higher home value always mean more money?
Only up to the FHA limit. For FHA case numbers assigned Jan 1 through Dec 31, 2026, the HECM maximum claim amount is $1,249,125. Value above that does not increase HECM proceeds, though some lenders offer non-FHA proprietary reverse mortgages for higher-value homes.
Can I take all the money at once?
Usually not in the first year. HUD generally limits first-year draws to 60% of the principal limit, unless more is needed to pay mandatory obligations such as an existing mortgage.
Is your estimator a quote?
No. It is a rough illustration that uses approximate factors. Actual amounts come from a licensed lender after counseling, an application, and an appraisal.
Who wrote this guide
This guide is written and maintained by the Clear Reverse editorial team from the primary sources listed below. The "Last updated" date at the top shows when it last changed. Clear Reverse is an education service, not a lender or mortgage broker, and nothing here is legal, tax or financial advice. Spotted an error? Email hello@clearreverse.com. How we research and update our guides.
Sources
- HUD: HECM program page (maximum claim amount table) (lists the 2026 limit of $1,249,125, valid through Dec 31, 2026; accessed Oct 30, 2026)
- HUD Mortgagee Letter 2025-22 (2026 HECM limit) (dated Dec 11, 2025; limit applies to FHA case numbers assigned Jan 1 through Dec 31, 2026; accessed Oct 30, 2026)
- HUD Mortgagee Letter 2017-12 (2% initial and 0.50% annual mortgage insurance) (dated Aug 29, 2017; accessed Oct 30, 2026)
- 24 CFR 206.31 (origination fee may not exceed $6,000), eCFR (current text accessed Oct 31, 2026)
- CFPB: Reverse mortgages (consumer tools) (accessed Oct 30, 2026)
- 24 CFR 206.25 (first-year disbursement limits set by HUD notice), eCFR (current text accessed Oct 31, 2026)
- HUD Mortgagee Letter 2013-27 (first-year disbursement limits) (dated Sep 3, 2013; accessed Oct 30, 2026)
- HUD Handbook 4000.1, Single Family Housing Policy Handbook (HECM sections II.B and III.B) (Update 18, issued Aug 12, 2026; accessed Oct 30, 2026)
- 24 CFR 206.19 (payment plans), eCFR (current text accessed Oct 31, 2026)
- 24 CFR 206.205 (property charges and set-asides), eCFR (current text accessed Oct 31, 2026)
Program rules change, so confirm details with a HUD-approved counselor and a licensed lender.