Reverse Mortgages in Washington State

reverse mortgage guide washingtonTurn home equity into flexibility, income, and peace of mind.

A reverse mortgage is a powerful financial tool for homeowners age 62 and older who want to access their home equity without selling their home or taking on a monthly mortgage payment. Used thoughtfully, a reverse mortgage can help support retirement, improve cash flow, and provide options for aging in place—especially in high-cost housing markets like Washington State.

This page provides a clear overview of how reverse mortgages work, who they’re best suited for, and when they may (or may not) make sense.

What Is a Reverse Mortgage?

A reverse mortgage allows eligible homeowners to convert a portion of their home’s equity into cash. Unlike a traditional mortgage:

  • There are no required monthly principal and interest payments
  • The homeowner retains title to the property
  • The loan is typically repaid when the home is sold, no longer occupied as a primary residence, or the borrower passes away

The most common reverse mortgage program is the Home Equity Conversion Mortgage (HECM), which is insured by the federal government.

Who Is a Good Candidate for a Reverse Mortgage?

Reverse mortgages may be a good fit if you:

  • Are 62 or older
  • Own your home outright or have a low existing mortgage balance
  • Plan to stay in the home long term
  • Want to supplement retirement income, reduce monthly expenses, or create a financial safety net
  • Prefer not to sell or downsize right now

They are often used by homeowners who are “house rich and cash flow cautious.”

How Reverse Mortgage Funds Can Be Used

Reverse mortgage proceeds are flexible and can be used for many purposes, including:

  • Eliminating an existing mortgage payment
  • Supplementing retirement income
  • Covering healthcare or long-term care costs
  • Making home improvements or accessibility upgrades
  • Adding an ADU or DADU for family or rental income
  • Creating a standby line of credit for future needs

Funds can be received as:

  • A lump sum
  • Monthly payments
  • A line of credit
  • Or a combination of options

Key Benefits of a Reverse Mortgage

  • No required monthly mortgage payment
  •  You keep ownership of your home
  • Flexible payout options
  • Loan balance does not exceed the home’s value (non-recourse)
  • Can help homeowners age in place

Important Responsibilities to Know

While there is no monthly mortgage payment, borrowers must:

  • Continue to pay property taxes and homeowners insurance
  • Maintain the home
  • Live in the property as their primary residence

Failure to meet these obligations can result in the loan becoming due, so education and planning are critical.

Reverse Mortgages & Heirs

One common concern is what happens to the home in the future. When the loan becomes due:

  • Heirs may sell the home, repay the loan, and keep any remaining equity
  • Or they may refinance the loan and keep the property
  • Heirs are never personally liable for more than the home’s value

Reverse Mortgages Are Not One-Size-Fits-All

Reverse mortgages are not right for everyone—and that’s okay. They work best when:

  • They’re part of a broader retirement or housing strategy
  • The homeowner understands both the benefits and trade-offs
  • The goal is long-term housing stability, not short-term cash

That’s why education, counseling, and personalized guidance matter.

Let’s Talk Through Your Options

If you’re curious whether a reverse mortgage could support your retirement goals—or if you simply want clear, pressure-free information—I’m happy to help.

Let’s connect and talk through whether a reverse mortgage makes sense for you or your family.

Here are posts from The Mortgage Porter about reverse mortgages in Washington state.