Do I make monthly payments on a reverse mortgage?

No required principal-and-interest payments. You remain responsible for property taxes, homeowners insurance, HOA dues, and basic home maintenance.

How is the loan repaid?

The loan becomes due when the last borrower permanently leaves the home — typically through sale of the home, by heirs refinancing, or by heirs choosing to convey the home to the lender.

Do I still own my home?

Yes. Title stays in your name. The lender records a lien, exactly like any other mortgage.

Is HUD counseling really required?

Yes. HUD-approved counseling is a federal consumer protection. It is meant to confirm you fully understand the program before applying.

How long does the process take?

From application to closing usually 30–45 days in Utah, depending on appraisal scheduling and counseling completion.

Is the money I receive taxable?

Reverse mortgage proceeds are generally not treated as taxable income because they are loan proceeds, not income. Confirm details with a qualified tax advisor.

How a Utah Reverse Mortgage Works

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By Tres Miller · Mortgage Lender · NMLS #217768

Reviewed June 22, 2026 · 25+ years lending in Utah

The HECM in one paragraph

A Home Equity Conversion Mortgage (HECM) is a federally insured loan available to Utah homeowners 62 and older. It allows a portion of home equity to be accessed as cash, a line of credit, monthly payments, or any combination — with no required monthly principal-and-interest payment. The loan is repaid when the home is sold, refinanced, or when the last borrower permanently leaves the home. A reverse mortgage is a conservative cash-flow tool when used as part of a planned retirement strategy.

Step 1 — Initial conversation

Most Utah homeowners begin with a free, no-obligation call to understand whether a HECM realistically fits their goals. This is education, not application.

Step 2 — HUD-approved counseling

Before applying, every borrower must complete counseling with an independent HUD-approved counselor. This is a consumer-protection requirement designed to confirm you understand the program, its costs, and its alternatives.

Step 3 — Application and disclosures

Once counseling is complete, the formal application includes required federal and Utah-specific disclosures. You will see the projected principal limit, estimated costs, and the amortization assumptions in writing.

Step 4 — Appraisal and underwriting

A licensed Utah appraiser inspects and values the home. Underwriting reviews your age, the appraised value (or HUD lending limit), property condition, occupancy, and your ability to meet ongoing tax-and-insurance obligations.

Step 5 — Closing

Closing happens at a Utah title company. After a three-business-day federal right-of-rescission period, the loan funds. Any existing mortgage is paid off, and the remaining proceeds are disbursed in the structure you selected.

Step 6 — Living with the loan

You continue to live in the home, pay property taxes and insurance, and maintain the property. The loan balance grows over time as interest accrues, while a HECM line-of-credit (if selected) grows on its unused portion at the note rate plus mortgage insurance premium.

Step 7 — Loan repayment

When the home is sold or the last borrower permanently leaves, the loan balance is repaid. Any remaining equity belongs to you or your heirs. HECMs are non-recourse: heirs are never personally liable for more than the value of the home.