How Much Money Can I Get From a Reverse Mortgage? (2026 Guide with Real Numbers)
The amount you can borrow with a reverse mortgage depends on four things: your age, your home's value, current interest rates, and how much you still owe on the home. In 2026, most borrowers between ages 62 and 90 can access between 35% and 61% of their home's value — up to the FHA's $1,249,125 lending limit. This guide shows you the exact 2026 Principal Limit Factor tables, real-dollar examples at different ages and home values, and the levers that change your payout by tens of thousands of dollars.
At age 70 with a $500,000 home and no mortgage, you can typically access about $205,000 in 2026 — roughly 41% of the home's value.
Older = more. Higher home value = more (up to $1,249,125). Lower interest rate = more.
See the full age-by-value tables below, then run your specific numbers.
The Short Answer — What Most Borrowers Actually Get
Most HECM borrowers in 2026 access between 35% and 60% of their home's value, depending on the age of the youngest borrower and current interest rates. The percentage rises with age and falls with rates. A 62-year-old typically qualifies for about 35% of home value, a 75-year-old for about 44%, an 85-year-old for about 54%, and a 90-year-old for about 61%.
The 2026 HECM lending limit — the maximum home value HUD will use in the calculation — is $1,249,125 (HUD Mortgagee Letter 2025-22). Home value above that ceiling doesn't increase your principal limit through the standard HECM program. Homes above the cap can look at jumbo / proprietary reverse mortgages instead — covered later in this guide.
A useful anchor: a 70-year-old with a $500,000 home and no existing mortgage typically qualifies for a principal limit of about $204,500 in 2026. From that gross figure you subtract closing costs and any mortgage payoff to arrive at your net cash.
This is your principal limit — the gross amount you qualify for. Your net proceeds are this minus closing costs, the initial mortgage insurance premium, and any existing mortgage you would pay off. Closing costs typically run $15,000–$25,000.
The 4 Factors That Determine Your Payout
Factor 1 — Age of the Youngest Borrower
HUD uses the age of the youngest borrower (or eligible non-borrowing spouse) on the loan. Older borrowers get a higher Principal Limit Factor because the actuarial assumption is that the loan will be outstanding for fewer years before becoming due. Each additional year of age adds roughly 0.5%–0.8% to the PLF in 2026.
If one spouse is 62 and the other is 75, HUD uses 62. That's why some couples wait until the younger spouse turns 65 or 70 before applying — the principal limit can grow by $40,000–$80,000 over those years on a typical home.
Factor 2 — Home Value (Up to the 2026 HECM Limit of $1,249,125)
The "Maximum Claim Amount" is the lower of your appraised value or the FHA HECM limit ($1,249,125 in 2026). Every dollar of home value up to that cap counts. A $1.5 million home produces the same Maximum Claim Amount as a $1.249 million home for HECM purposes — anything above the cap is invisible to the formula.
Homes above the cap that want full credit for value usually look at jumbo (proprietary) reverse mortgages, which can use up to ~$4 million in home value but at higher rates and without FHA insurance.
Factor 3 — Current Interest Rates (the "Expected Rate")
The "expected rate" — a blend of the 10-year Constant Maturity Treasury index and the lender's margin — determines which PLF table applies. Lower expected rate = higher PLF = more proceeds. A 0.5% drop in the expected rate can increase your principal limit by $30,000–$80,000 on a typical home.
This is why two borrowers with identical age and home value can get very different principal limits depending on the month they lock. Watching rates matters more than most borrowers realize.
Factor 4 — Existing Mortgage Balance
Any existing forward mortgage, HELOC, or other lien against the home must be paid off at closing from your reverse mortgage proceeds. If your principal limit is $300,000 and your existing mortgage is $120,000, your remaining cash proceeds before closing costs are $180,000. The benefit: that monthly mortgage payment goes away.
2026 Principal Limit Factor (PLF) Chart by Age
| Age of Youngest Borrower | Principal Limit Factor | % of Home Value Accessible |
|---|---|---|
| 62 | 35.1% | ~35% |
| 65 | 37.2% | ~37% |
| 70 | 40.9% | ~41% |
| 75 | 43.8% | ~44% |
| 80 | 48.2% | ~48% |
| 85 | 54.4% | ~54% |
| 90+ | 61.4% | ~61% |
Source: HUD-published PLF tables, summarized via reverse.mortgage age requirements.
PLF is set by HUD based on actuarial life-expectancy tables. A higher PLF means more of your equity is accessible. PLFs change when expected interest rates change — when rates fall, every PLF in the table rises; when rates rise, every PLF falls.
Real-Dollar Examples by Age and Home Value
| Age | $300K Home | $500K Home | $750K Home | $1,000K Home | $1,249,125 Home (max) |
|---|---|---|---|---|---|
| 62 | $105,300 | $175,500 | $263,250 | $351,000 | $438,443 |
| 65 | $111,600 | $186,000 | $279,000 | $372,000 | $464,675 |
| 70 | $122,700 | $204,500 | $306,750 | $409,000 | $510,892 |
| 75 | $131,400 | $219,000 | $328,500 | $438,000 | $547,117 |
| 80 | $144,600 | $241,000 | $361,500 | $482,000 | $602,278 |
| 85 | $163,200 | $272,000 | $408,000 | $544,000 | $679,524 |
| 90+ | $184,200 | $307,000 | $460,500 | $614,000 | $766,963 |
Calculated using 2026 HUD PLFs at 5.875% expected rate. Numbers are gross principal limits before closing costs.
These are gross numbers. Your actual cash proceeds will be lower after subtracting:
- ~$6,000 origination fee (capped by HUD)
- ~2% initial mortgage insurance premium (~$24,983 on a $1.25M home)
- ~$2,000–$4,000 third-party closing costs (appraisal, title, recording, counseling)
- Any existing mortgage balance paid off at closing
How the Calculation Actually Works (Step-by-Step)
Step 1 — Determine the Maximum Claim Amount
The Maximum Claim Amount is the lower of your appraised home value or the 2026 HECM lending limit of $1,249,125. If your home appraises at $850,000, your Maximum Claim Amount is $850,000. If it appraises at $1.6 million, your Maximum Claim Amount is capped at $1,249,125.
Step 2 — Look Up Your Principal Limit Factor (PLF)
HUD's PLF table uses your age (or the age of the youngest borrower/eligible spouse) and the expected rate to find your percentage. At age 70 with a 5.875% expected rate, the PLF is approximately 40.9%.
Step 3 — Multiply to Get Your Principal Limit
Maximum Claim Amount × PLF = Principal Limit. This is the gross number you qualify for — before any closing costs or payoffs.
Step 4 — Subtract Closing Costs and Existing Mortgage
Principal Limit − Closing Costs − Existing Mortgage Balance = Available Cash Proceeds.
Worked example: 70-year-old with a $500,000 home and $50,000 existing mortgage.
- Maximum Claim Amount: $500,000
- PLF at age 70: 40.9%
- Principal Limit: $500,000 × 0.409 = $204,500
- Minus ~$15,000 closing costs: $189,500
- Minus $50,000 existing mortgage payoff: $139,500 in cash proceeds
- Their existing $400/month mortgage payment goes away
- They keep the home with no required monthly mortgage payment
How Interest Rates Change Your Payout
| Expected Rate | PLF (approx.) | Principal Limit |
|---|---|---|
| 5.50% | ~53% | ~$424,000 |
| 6.00% | ~50% | ~$400,000 |
| 6.50% | ~47% | ~$376,000 |
| 7.00% | ~44% | ~$352,000 |
| 7.50% | ~41% | ~$328,000 |
Source: Reverse Mortgage Coach 2026 rates analysis.
On the same $800,000 home with the same borrower, a 5.50% rate produces about $96,000 more in proceeds than a 7.50% rate. This is why timing — and locking when rates are favorable — matters.
As of mid-2026, adjustable HECM rates range from approximately 5.88%–6.63%, and fixed HECM rates from 7.56%–7.93%. The 10-year Constant Maturity Treasury (CMT) index drives the expected rate that sets your PLF.
The 5 Ways You Can Receive the Money
1. Lump Sum (Fixed-Rate HECM Only)
You take all available proceeds at closing as a single payment. Fixed-rate HECMs only allow lump sum; adjustable-rate HECMs do not. Subject to the first-year 60% disbursement rule unless you're paying off an existing mortgage with the proceeds.
2. Line of Credit (Adjustable-Rate Only — and It Grows Over Time)
A revolving line of credit you can draw from as needed. Most financial planners recommend this option for healthy borrowers because of the growth feature described below.
The Growing Line of Credit Feature (HECM's hidden advantage): An adjustable-rate HECM line of credit grows over time at the same rate as the note rate plus 0.5% MIP. This means an untapped line of credit at age 62 can be substantially larger by age 75 — even if your home value doesn't change. A $200,000 line of credit growing at 6% compounds to approximately $403,000 in 12 years.
3. Tenure Payments (Monthly Payments for Life)
Fixed monthly payments for as long as at least one borrower lives in the home. The amount is calculated so the principal limit is never exceeded based on actuarial assumptions. Tenure is the closest thing to a guaranteed pension a HECM offers.
4. Term Payments (Monthly Payments for a Set Number of Years)
Fixed monthly payments for a defined term — say 10 or 15 years. Higher monthly payment than tenure because the same principal limit is spread over fewer months.
5. Combination (Mix of Lump Sum, LOC, and Monthly Payments)
You can take a partial lump sum at closing, set up a line of credit for future flexibility, and elect monthly tenure or term payments — all from the same loan. This is the most common structure for borrowers who consult a financial planner before closing.
First-Year Disbursement Limit (the 60% Rule)
HUD limits first-year disbursements to no more than 60% of your principal limit, with limited exceptions for paying off an existing mortgage or other mandatory obligations. The remaining 40% becomes available in year 2 and beyond.
If your principal limit is $300,000, you can typically take up to $180,000 in year one. The other $120,000 unlocks on the first-year anniversary of closing. If you have a $100,000 existing mortgage to pay off, that doesn't count against the 60% cap.
This rule prevents borrowers from drawing everything immediately and spending it all. It also makes the line-of-credit option more attractive — the unused portion grows during that waiting period.
HECM for Purchase — Using a Reverse Mortgage to Buy a Home
HECM for Purchase (H4P) lets a borrower 62+ buy a new primary residence using a reverse mortgage. You bring a large down payment in cash, the reverse mortgage covers the rest, and there's no required monthly mortgage payment going forward.
The required down payment is roughly 100% minus your PLF, adjusted for closing costs. For a 70-year-old buying a $500,000 home, the required down payment is typically around 59% (~$298,000), with the reverse mortgage funding the rest. Older buyers need a smaller down; younger buyers need more.
This is popular with retirees who sold a larger home, want to relocate (closer to grandchildren, lower-tax state, smaller property) and want to preserve liquidity rather than tying up all the sale proceeds in the new home. See reverse.mortgage HECM Purchase data for current down-payment tables.
Jumbo / Proprietary Reverse Mortgages (Above $1,249,125)
For homes above the FHA cap, private (proprietary) reverse mortgages from non-FHA lenders can use home values up to about $4 million. Rates are higher (roughly 9%–11% fixed in mid-2026), and these loans are not federally insured — so the non-recourse and HUD protections work differently. Approximate LTVs by age:
- Age 62: ~41% LTV
- Age 70: ~45%
- Age 80: ~54%
- Age 90+: ~61%
A $2 million home with a 70-year-old borrower can get roughly $900,000 from a jumbo product versus about $510,000 from a HECM (which caps the calculation at $1.249M). The higher rate and lack of FHA insurance are the trade-offs.
What Reduces Your Payout
- Existing mortgage — Must be paid off at closing from your proceeds.
- HELOC balance — Same as above; HELOCs are paid off and closed at funding.
- Property tax liens or judgments — Must be cleared before or at closing.
- Required repairs — Lender may hold back funds for HUD-required repairs (typically up to 15% of the principal limit).
- LESA (Life Expectancy Set-Aside) — If the financial assessment shows risk of not paying property taxes or insurance, HUD requires a set-aside from your proceeds to cover those obligations for life.
- Servicing fee set-aside — Up to $35/month (rarely material on modern loans).
What Maximizes Your Payout
- Wait if you can — Every birthday increases your PLF by roughly 0.5%–0.8%.
- Watch rates — Lower expected rates mean a bigger principal limit. A 0.5% rate drop can mean tens of thousands more.
- Choose adjustable over fixed — Adjustable HECMs unlock the line of credit and growing-credit feature.
- Keep the home well-maintained — A higher appraised value (up to the cap) means a bigger principal limit.
- Pay off the existing mortgage first if possible — Cash on hand means more net proceeds available.
- Don't take more than you need in year 1 — Stay under the 60% rule and let the LOC grow.
If you're researching this on behalf of an aging parent, our helping a parent evaluate a reverse mortgage guide walks through the family-side considerations. Want to compare with non-HECM options first? See our alternatives guide. For complete walked-through cases by age and home value, see real-world examples.
Frequently Asked Questions
How much money can I get from a reverse mortgage at age 62?
At the minimum age of 62, the 2026 PLF is approximately 35.1% at a 5.875% expected rate. On a $400,000 home, that's roughly $140,400 in principal limit before closing costs. The percentage rises every year you wait.
What's the maximum amount you can borrow with a reverse mortgage in 2026?
The maximum principal limit on a standard HECM in 2026 is approximately $766,963 — that's the 90+ PLF (61.4%) applied to the $1,249,125 FHA cap. Anyone with a home above the cap who wants a higher payout looks at jumbo/proprietary reverse mortgages.
Do I get more money if I'm older?
Yes. HUD's PLF tables are based on life expectancy — older borrowers have a higher PLF because the loan is statistically expected to be outstanding for fewer years. The increase is roughly 0.5%–0.8% per year of age.
How does interest rate affect my reverse mortgage payout?
Lower expected rate means a higher PLF, which means more principal limit on the same home. A 0.5% drop in the expected rate typically adds $30,000–$80,000 to a principal limit on a median-priced home.
What's the difference between principal limit and net cash proceeds?
Principal limit is the gross amount you qualify for. Net cash proceeds are what's left after closing costs (~$15,000–$25,000), the initial 2% MIP, and any existing mortgage payoff. Always ask a lender to quote both numbers.
Can I get a lump sum from a reverse mortgage?
Yes, but only with a fixed-rate HECM and subject to the first-year 60% disbursement rule (with exceptions for mortgage payoffs). Adjustable-rate HECMs do not allow a full lump sum at closing.
Why can I only access 60% in the first year?
HUD's first-year disbursement limit was added to prevent borrowers from drawing 100% of the loan immediately and spending it all. Up to 60% can come out in year 1 (plus whatever is needed to pay off mandatory obligations like an existing mortgage); the remaining 40% unlocks on the first anniversary.
Does my credit score affect how much I can get?
No — credit score does not change the PLF or principal limit. Credit is used only in the financial assessment to decide whether a LESA (life-expectancy set-aside) is required to cover taxes and insurance. A LESA reduces the cash you receive but doesn't change the principal limit.
How does an existing mortgage affect my reverse mortgage proceeds?
Any existing mortgage or HELOC must be paid off at closing using your reverse mortgage proceeds. The principal limit is unchanged — but your cash to pocket is reduced by the payoff. The upside: that monthly mortgage payment disappears.
What if my home is worth more than $1,249,125?
The standard HECM uses $1,249,125 as the maximum claim amount, even if your home is worth more. Borrowers with higher-value homes who want full credit for the appraised value typically look at jumbo (proprietary) reverse mortgages, which use home values up to ~$4 million at higher rates and without FHA insurance.
Bottom Line — See Your Actual Numbers
The tables in this guide give you a strong estimate, but your actual payout depends on your specific age, ZIP code, home appraisal, the current expected rate the day you apply, and any existing liens. Before any sales conversation, run a personalized estimate. Our pre-qualification flow takes about 2 minutes, requires no credit check, and shows you a real principal limit based on current 2026 rates and your specific situation.
If your numbers look promising, the next step is HUD-approved counseling — required before any HECM can fund — and a written quote from at least one or two FHA-approved lenders.