What happens if I have a reverse mortgage and I want to sell my home?

If you decide to sell your home while you have a reverse mortgage loan, you will have to pay back the money you borrowed plus interest and fees.

• If your loan balance is less than the amount you sell your home for, then you keep the difference.
• If your loan balance is more than the amount you sell your home for and you sell your home for the appraised value, the money from the sale will go towards the outstanding loan balance and any remaining balance of the loan is paid for by mortgage insurance.
• If your reverse mortgage loan is in default and you’ve received a notice that the loan is “due and payable,” you may sell your home for 95 percent of its appraised value. The money from the sale will then go towards the outstanding loan balance and any remaining balance of the loan is paid for by mortgage insurance.

Note: This information only applies to Home Equity Conversion Mortgages (HECMs), which are the most common type of reverse mortgage loan.