Reverse Mortgage in Utah: Who Qualifies, Counseling, and What Happens to Your Heirs

The most common reverse mortgage, the FHA-insured Home Equity Conversion Mortgage (HECM), is for homeowners 62 or older who live in the home as their principal residence, own it outright or have a balance the loan can pay off, and first meet with an independent HUD-approved HECM counselor. You keep the title and make no monthly mortgage payment, but the balance grows, and you must keep paying property taxes, insurance, and HOA dues and keep the home in good repair. The loan comes due when the last borrower (or eligible non-borrowing spouse) dies, sells, or moves out. Your heirs can then pay it off, sell the home, or turn it over to the lender.

Utah also has its own law on reverse mortgages, the Utah Reverse Mortgage Act. We explain it below.

The Hometown Mortgage Co. is based in Layton and originates FHA-insured HECMs for homeowners across Utah. We can walk you through whether a HECM fits your situation, before or after your counseling session.

What Is a Reverse Mortgage (HECM)?

A reverse mortgage is a loan secured by your home. You borrow against your equity, and you don't make monthly mortgage payments.

How Does a Reverse Mortgage Work?

With a regular mortgage, the balance goes down over time. With a reverse mortgage, it goes up. According to the Consumer Financial Protection Bureau (CFPB), interest and fees are added to the loan balance each month. As the balance grows, your home equity shrinks. The CFPB puts it bluntly: "A reverse mortgage loan is not free money." You or your heirs will eventually have to repay it, usually by selling the home.

What Makes a HECM Different From Other Reverse Mortgages?

According to HUD, the HECM is the only reverse mortgage insured by the U.S. federal government. It's available only through an FHA-approved lender. Private "proprietary" reverse mortgages that aren't FHA-insured also exist. For those loans, Utah law sets the minimum age at 55 (Utah Code 57-28-202(1)(b)). This guide covers HECMs only.

How Can You Receive the Money?

Utah's Reverse Mortgage Act describes several ways a reverse mortgage can pay out:

• Line of credit: you draw funds when and in amounts you choose
• Tenure payments: equal monthly payments for as long as the home is your principal residence
• Term payments: equal monthly payments for a fixed term

Not every option fits every loan or borrower. Your counselor and loan officer can explain which options apply to you.

Can You Use a HECM to Buy a Home?

Yes. HUD says you can use a HECM to buy a new primary residence if you can pay the difference between the HECM proceeds and the purchase price plus closing costs with cash on hand. We'll cover HECM for Purchase in a separate article.

Who Qualifies for a Reverse Mortgage in Utah?

The age, residence, and counseling rules come from federal HECM rules and from Utah law. Meeting them doesn't guarantee approval.

What Is the Minimum Age?

For an FHA-insured HECM, the youngest borrower must be 62 or older at closing (24 CFR 206.33). Utah law sets the same 62-and-older rule for FHA HECMs (Utah Code 57-28-202(1)(a)).

Does the Home Have to Be Your Principal Residence?

Yes. The CFPB says your principal residence is where you live the majority of the year. Utah defines it as the home you keep as your permanent place of abode and where you typically spend the majority of the calendar year (Utah Code 57-28-102(7)). A vacation cabin or a rental you don't live in doesn't qualify.

Can You Get a Reverse Mortgage If You Still Have a Mortgage?

Possibly. The CFPB says you must either own your home outright or have a low enough balance to pay off when the reverse mortgage closes. You can pay it off with your own money or with money from the reverse mortgage.

Does Federal Debt Affect Eligibility?

Yes. According to the CFPB, you can't owe federal debt such as federal income taxes or federal student loans. You may, however, be able to use reverse mortgage money to pay that debt off.

What Is the Financial Assessment?

Before closing, the lender does a financial assessment. It checks whether you can keep paying property taxes and homeowners insurance (and flood insurance, if needed). Depending on the results, the lender may require you to set aside part of the loan to cover those bills. Federal rules call this a Life Expectancy Set-Aside, or LESA (24 CFR 206.205; CFPB).

What Kinds of Homes Qualify?

Utah's Reverse Mortgage Act covers:

• A one- to four-unit home where you live in one of the units
• A condominium in a HUD-approved project
• A manufactured home built after June 1976

(Utah Code 57-28-102(2).) The home must also meet HUD property standards. The CFPB notes that if it doesn't, the lender will tell you which repairs are needed before you can get the loan.

How Much Can You Borrow? Is There a 2026 HECM Limit?

HUD says the amount available depends on three things:

• The age of the youngest borrower or eligible non-borrowing spouse
• The current interest rate
• The lowest of your home's appraised value, the HECM FHA limit, or the sales price

For FHA case numbers assigned in 2026, HUD's HECM maximum claim amount is $1,249,125 (HUD Mortgagee Letter 2025-22). That's a cap on the home value used in the calculation. It is not the amount you'd receive. We won't estimate proceeds in an article — any real number depends on your file and has to come from a personalized quote.

Is Reverse Mortgage Counseling Required?

Yes. Counseling is required, independent, and comes first.

Who Has to Attend HECM Counseling?

Federal rules say the borrower, any non-borrowing spouse, and any non-borrowing owner must all receive counseling (24 CFR 206.41(a)). Only counselors on FHA's HECM Counselor Roster, working for a participating agency, can do HECM counseling (24 CFR 206.302). If you're married and your spouse won't be on the loan, your spouse still attends.

What Does a HECM Counselor Cover?

Utah law says the counselor will discuss:

• Options other than a reverse mortgage
• Other ways to tap home equity, such as sale-leaseback financing, a deferred payment loan, or a property tax deferral
• The financial effects of a reverse mortgage in your situation

The counselor must also give you a written disclosure that a reverse mortgage may have tax consequences, may affect your eligibility for some state and federal assistance, and may affect your estate and heirs (Utah Code 57-28-204). If you have a non-borrowing spouse, federal rules add a discussion of what your spouse would need to do to stay in the home after you die (24 CFR 206.41(b)). When you finish, you receive a certificate, and you give a copy to the lender (24 CFR 206.41(c)).

When Does Counseling Happen in Utah?

For an FHA-insured loan, Utah law says the counseling meeting happens before FHA assigns a case number to your loan (Utah Code 57-28-204(2)(a)). In practice, counseling comes early, before the loan is set up.

How Do I Find a HECM Counselor in Utah?

• Search FHA's HECM counseling agency lookup (choose Utah and "HECM")
• Use HUD's housing counselor locator
• Call HUD at (800) 569-4287

HUD also lists national intermediaries that counsel by phone and in person. Federal rules also require the lender to give you a list of approved HECM counselors when you first make contact (24 CFR 206.41(a)). Utah's Act adds that the list should have at least five independent counselors (Utah Code 57-28-203(1)(b)).

Can Hometown Mortgage Do My Counseling?

No. Counselors are independent, and that's the point. We don't provide or influence counseling — we're the lender that can originate your HECM once counseling is complete. We're happy to go over loan questions with you before your session and help you think through what you learned afterward.

How Do I Avoid Reverse Mortgage Scams?

• Be wary of contractors who suggest a reverse mortgage to pay for home repairs. The CFPB says this "may be a scam." Don't let anyone pressure you.
• VA does not offer reverse mortgages. The CFPB warns about ads that imply VA approval or promise veterans a "no-payment" reverse mortgage.
• Watch for estate-planning fees. Federal rules have counselors ask whether you've signed with an estate-planning service that charges fees at or after closing, and whether those services are available elsewhere at low or no cost (24 CFR 206.41(b)(1)).

Who Owns the House With a Reverse Mortgage?

You do. The CFPB is clear: "the title to your home remains with you." The lender holds a lien, as with any mortgage.

Do I Still Pay Property Taxes and Insurance With a Reverse Mortgage?

Yes. According to the CFPB and federal HECM rules, you're still responsible for:

• Property taxes, paid on time
• Homeowners insurance, plus flood insurance if required
• HOA or condo dues
• Keeping the home in good repair (the CFPB says you generally have 60 days to start repairs the servicer asks for)
• Living in the home as your principal residence and certifying that every year (24 CFR 206.211)

The CFPB warns that if you don't meet these requirements, "you could lose your home to foreclosure." If you can't afford needed repairs, the CFPB suggests contacting your local Area Agency on Aging at (800) 677-1116.

What if I'm Away From Home for a While?

The CFPB explains the rules when no co-borrower lives in the home:

• Away 2 to 6 months: tell your servicer so they know it's still your principal residence.
• Away more than 6 months for non-medical reasons: the home generally stops counting as your principal residence, and the loan must be repaid.
• More than 12 consecutive months in a healthcare facility (hospital, rehab, nursing home, assisted living): the same applies.

If a co-borrower still lives there and keeps meeting the loan terms, they can generally stay.

Can I Owe More Than My Home Is Worth?

For a HECM, the CFPB says "you will never owe more than the value of the house." Utah law also defines a reverse mortgage as a nonrecourse loan (Utah Code 57-28-102(8)).

When Does a Reverse Mortgage Have to Be Repaid?

According to the CFPB, a HECM must be paid off when the last surviving borrower or eligible non-borrowing spouse dies, sells the home, or no longer lives in the home as a principal residence.

Can the Loan Come Due Sooner?

Yes. The CFPB says it can come due early if you don't pay property taxes or insurance, don't keep the home in good repair, or no longer live there as your principal residence.

Does Utah Require Notice Before Foreclosure?

Utah's Reverse Mortgage Act says that before starting foreclosure on a reverse mortgage, the lender must send the borrower a written notice of the default by certified mail, return receipt requested, and give the borrower at least 30 days to fix it. This rule doesn't apply if the borrower has died (Utah Code 57-28-304). If you ever get a default notice, call your servicer right away and contact a HUD-approved housing counselor.

What Happens to My Reverse Mortgage When I Die?

It depends mostly on who else is on the loan and who lives in the home.

What if There's a Co-Borrower?

The CFPB says a surviving co-borrower can stay in the home and keep receiving loan payments, as long as they keep meeting the loan terms.

Can a Non-Borrowing Spouse Stay in the Home?

Maybe. It isn't automatic. For HECMs with FHA case numbers assigned on or after August 4, 2014, the CFPB explains that a spouse who isn't on the loan may be able to stay if they qualify as an Eligible Non-Borrowing Spouse under HUD rules. Among other requirements, the spouse must:

• Have been married to you when the loan was signed, and until your death
• Be named in the loan documents as a non-borrowing spouse
• Have lived in the home at closing and keep living there as a principal residence
• Keep meeting the loan requirements

What if There's No Co-Borrower or Eligible Spouse?

The loan becomes due and payable, and your heirs decide what to do with the home.

What Should I Do Now to Protect My Family?

• Call your servicer and confirm in writing which names are on the loan. The CFPB recommends this.
• Talk with your family about the home and what they'd want to do.
• Consider an estate plan with a qualified professional.

Can My Heirs Keep or Sell the Home After I Die?

Yes. Heirs have options, but the clock matters.

How Long Do Heirs Have to Decide?

According to the CFPB, once heirs receive a due-and-payable notice from the lender, they have 30 days to buy the home, sell it, or turn it over to the lender. Federal rules also count the 30 days from the date of that notice (24 CFR 206.125(a)(2)) — not from the date of death. The CFPB adds that the timeline may be extended, up to six months, so heirs can sell or get their own financing. Property taxes and insurance remain the estate's responsibility until title transfers.

Option 1: Can Heirs Pay Off the Loan and Keep the House?

Yes. Heirs can pay off the reverse mortgage and keep the home. Many would need their own mortgage to do it (CFPB).

Option 2: What if Heirs Sell the Home?

If the home is worth more than the loan balance, heirs can sell it, repay the loan, and keep the difference (CFPB). If the home is worth less than the balance, heirs can satisfy a HECM by selling the home for at least 95% of its appraised value — the mortgage insurance paid during the life of the loan covers the rest (CFPB; HUD; 24 CFR 206.125(a)(2)(ii)). This 95% rule is a HECM rule; other reverse mortgages may work differently.

Option 3: Can Heirs Just Give the House to the Lender?

Yes. Heirs can sign the home over to the lender with a deed-in-lieu of foreclosure instead of selling it (HUD; 24 CFR 206.125(a)(2)(iii)).

What if Heirs Do Nothing?

The loan will head toward foreclosure. Federal rules generally require the servicer to start foreclosure within six months of the due date, unless HUD approves more time (24 CFR 206.125(d)). HUD's advice to heirs is simple: contact the lender immediately. Heirs can also get help from a HUD-approved housing counseling agency or an attorney (CFPB).

What Does Utah's Reverse Mortgage Act Say?

Utah has its own reverse mortgage law: the Utah Reverse Mortgage Act, Utah Code Title 57, Chapter 28. Here's a plain-English summary — it isn't legal advice.

What Are Utah's Age and Occupancy Rules?

• Age: 62 or older for an FHA-insured HECM; 55 or older for proprietary loans that aren't FHA-insured
• Occupancy: you must live in the home as your principal residence

(Utah Code 57-28-202.)

What Disclosures Does Utah Require?

Under Utah Code 57-28-203, a lender gives written disclosures at several points:

• With the application: an explanation of any adjustable-rate feature, and a list of at least five independent housing counselors
• At least 10 days before closing: a description of your limited liability, your rights and obligations (including temporary absences and what triggers repayment), and the projected total cost of the loan
• Each year by January 31: a statement summarizing amounts paid to you, deferred interest added, and the outstanding balance
• If applicable, at least 25 days before a rate adjustment: the current index, its publication date, and the new rate

What Counseling Does Utah Require?

Utah requires a meeting with an independent housing counselor from HUD's HECM Counselor Roster. The counselor gives you the written disclosure about taxes, public benefits, and your estate and heirs (Utah Code 57-28-102(3), 57-28-204).

How Do Federal HECM Rules Fit With Utah's Act?

Utah Code 57-28-208 says that when a lender makes a HUD-insured reverse mortgage, it satisfies Utah's requirements in Sections 57-28-202 through 57-28-206 by complying with the federal HECM rules. In practice, the federal HECM process covers much of the list above for HECMs.

Does Utah Have a Cooling-Off Period for Reverse Mortgages?

Utah's Act includes a cooling-off section (Utah Code 57-28-207). After you accept a lender's written loan commitment in writing, the lender can't bind you to the loan or require you to close for five days. You can't waive this.

Separately, the CFPB says most reverse mortgages come with a federal three-business-day right to cancel after closing. To cancel, you notify the lender in writing within three business days, for any reason. The CFPB suggests using certified mail with a return receipt.

Do Reverse Mortgage Payments Count as Income for Utah Assistance Programs?

For Utah means-tested aid programs, the Act says reverse mortgage payments count as loan proceeds, not income, and undisbursed funds count as home equity (Utah Code 57-28-302). Federal programs have their own rules. If you receive or may apply for public benefits, ask the program or a benefits counselor before you borrow.

Why Does the Act Matter When Choosing Who to Work With?

Utah's mortgage licensing law lists violating the Utah Reverse Mortgage Act as prohibited conduct for licensees (Utah Code 61-2c-301(2)(w)). Utah-licensed mortgage professionals are expected to follow it.

Is a Reverse Mortgage Right for You?

A reverse mortgage can help some Utah homeowners stay in their homes. It isn't the right tool for everyone.

What Are the Alternatives to a Reverse Mortgage?

The CFPB suggests considering:

• Waiting. Borrowing too young could leave you short on money later, when health costs may be higher.
• A home equity loan or line of credit. It may cost less, but it usually has monthly payments and depends on your income and credit.
• Refinancing. A new traditional mortgage may lower your payment. Watch the term length in retirement.
• Downsizing. Moving to a more affordable home.
• Lowering expenses. State and local programs may help with utilities, repairs, and property taxes. Check with your county.

What Should You Ask at Counseling and at Hometown?

• Who will live in the home over the next 5, 10, or 20 years?
• Is my spouse on the loan? If not, what happens to them if I die first or move into care?
• Can I comfortably keep paying property taxes, insurance, and HOA dues?
• What do my children or heirs want to do with the house?
• How could this affect my taxes, public benefits, or estate plan? (Ask your counselor and a tax or benefits professional.)

Frequently Asked Questions

Who qualifies for a reverse mortgage in Utah?

For an FHA-insured HECM: the youngest borrower must be 62 or older; the home must be your principal residence; you must own it outright or have a balance the loan can pay off; you can't be delinquent on federal debt; you must show you can keep paying property charges, or set funds aside; the home must meet property standards; and you must complete HUD-approved counseling (CFPB; 24 CFR 206.33; Utah Code 57-28-202). Meeting these requirements doesn't guarantee approval.

Is counseling required, and how do I find a counselor in Utah?

Yes. You and any non-borrowing spouse or non-borrowing owner must meet with a counselor on FHA's HECM Counselor Roster (24 CFR 206.41). Utah law says this happens before FHA assigns a case number (Utah Code 57-28-204). Use FHA's HECM counseling agency lookup or HUD's counselor locator, or call (800) 569-4287. Counselors are independent of the lender.

Who owns the house with a reverse mortgage?

You do. Title stays in your name, and the lender holds a lien. You must keep paying property taxes, insurance, and HOA dues, maintain the home, and live there as your principal residence (CFPB).

What happens to my reverse mortgage when I die?

It becomes due and payable after the last borrower dies, unless an Eligible Non-Borrowing Spouse qualifies to stay. A surviving co-borrower can keep living in the home and receiving payments if they meet the loan terms (CFPB).

Can my heirs keep or sell my home?

Yes. After heirs receive the due-and-payable notice, they generally have 30 days to act — that may be extended, up to six months, to sell or arrange financing. Their options: pay off the loan and keep the home, sell it, or give it to the lender through a deed-in-lieu. If a HECM balance is higher than the home's value, selling for at least 95% of the appraised value satisfies the loan, and heirs keep any sale money above the balance. Official sources differ on what heirs must pay to keep the home — the full balance, or the lesser of the balance and 95% of appraised value. Heirs should confirm the amount in writing with the servicer (CFPB; HUD).

What if my spouse isn't on the loan?

Your spouse may be able to stay after you die only if they qualify as an Eligible Non-Borrowing Spouse under HUD rules. Among other things, they must have been married to you at closing and until your death, be named in the loan documents, keep living in the home, and keep meeting the loan terms. They won't receive more loan money, and the CFPB says qualifying may be difficult. Raise this at counseling, before you apply.

Do I still have to pay property taxes, insurance, and HOA dues?

Yes. Falling behind on property charges or upkeep can make the loan come due and could lead to foreclosure. Depending on the financial assessment, some borrowers must set aside part of the loan for taxes and insurance (CFPB; 24 CFR 206.205).

Does Utah have its own reverse mortgage rules?

Yes, the Utah Reverse Mortgage Act (Utah Code Title 57, Chapter 28). It covers age and occupancy; required disclosures, including a list of at least five independent counselors and a projected total cost at least 10 days before closing; independent counseling; a 30-day cure notice before foreclosure on a living borrower; and how reverse mortgage payments count for Utah means-tested aid. It also has a five-day cooling-off section — how that section applies to FHA-insured HECMs isn't settled, so ask your loan officer and counselor.

How much can I get? Is there a 2026 limit?

It depends on the age of the youngest borrower (or eligible non-borrowing spouse), current interest rates, and the lowest of your home's appraised value, the HECM FHA limit, or the sales price (HUD). For FHA case numbers assigned in 2026, the HECM maximum claim amount is $1,249,125 (HUD ML 2025-22). That caps the home value used in the calculation — it isn't what you'd receive. Only a personalized quote can tell you more.

"A reverse mortgage is a big decision, and it affects more people than just you. Bring your spouse or your adult children into the conversation early."

The Hometown Mortgage Co. is based in Layton and originates FHA-insured HECMs for homeowners across Utah. We can walk you through how the loan works, what you'd still be responsible for, and what it could mean for your family later, before or after your HUD counseling session. There's no pressure, and no promises we can't keep.

Next step: contact The Hometown Mortgage Co. to start a conversation, or call (385) 758-5247. If you haven't done counseling yet, find a HUD-approved HECM counselor through FHA's counseling agency lookup or at (800) 569-4287.