With an FHA-insured Home Equity Conversion Mortgage (HECM) reverse mortgage, the principal balance and interest charges do not become due until a maturity event occurs, allowing seniors to live payment-free for as long as they meet the program requirements. The reverse mortgage becomes due and payable only when the last borrower (or eligible non-borrowing spouse) no longer lives in the home as a primary residence, whether due to moving, selling the property, entering long-term care, or passing away. The loan may also become due if the homeowner fails to meet ongoing obligations such as paying property taxes, keeping homeowners insurance active, paying HOA dues when applicable, or maintaining the home in reasonably good condition. Until one of these events occurs, the reverse mortgage remains active, secure, and free of mandatory monthly mortgage payments. Interest and mortgage insurance premiums simply accrue over time and are repaid later—typically through the sale of the home or other estate assets. Because the HECM is a non-recourse loan, neither the borrower nor their heirs will ever owe more than the home’s value at the time of repayment. Understanding when principal and interest come due helps seniors plan confidently and use home equity strategically throughout retirement.
