Reverse Mortgages in Utah & Idaho

I’m Caleb Adams, a licensed mortgage broker (NMLS #2281316) based in North Logan, Utah. I help homeowners in Utah and Idaho figure out whether a reverse mortgage makes sense, and if it does, I shop it across the wholesale lenders I work with. You work with me directly from the first question to closing. No call center.

A reverse mortgage lets you turn part of your home equity into cash without selling the house and without a required monthly mortgage payment. It is a useful tool for the right person. It is also a loan with real costs, and it is not the right answer for everyone. This page walks through both sides so you can decide with clear eyes.

How a Reverse Mortgage Works

The most common reverse mortgage is the Home Equity Conversion Mortgage, or HECM. It is insured by the Federal Housing Administration (FHA), which is part of HUD.

Here is the basic structure:

• You must be at least 62 years old.
• The home must be your primary residence.
• You keep the title. You still own the home.
• You do not make a required monthly principal and interest payment. Instead, interest and fees are added to the loan balance over time, so the balance grows.
• You are still responsible for property taxes, homeowners insurance, any HOA dues, and keeping the home in good repair.
• The loan is repaid when you no longer live in the home as your primary residence, for example when you sell, move out permanently, or pass away. The home is usually sold to pay it off, and any remaining equity goes to you or your heirs.

How much you can access depends mainly on the age of the youngest borrower (or eligible non-borrowing spouse), your home’s value, and current interest rates. Older borrowers and lower rates generally mean more available funds.

Ways to receive the money

With an adjustable-rate HECM, you can choose how to take the funds:

• Line of credit you draw from as needed
• Monthly payments for a set number of years (term) or for as long as you live in the home (tenure)
• A combination of the above

With a fixed-rate HECM, HUD requires a single lump sum at closing. That can work well for paying off an existing mortgage, but it gives you less flexibility later.

2026 HECM limit

For FHA case numbers assigned on or after January 1, 2026, the HECM maximum claim amount is $1,249,125. That is the most home value HUD will count when figuring your loan, no matter where you live in Utah or Idaho. If your home is worth more than that, the calculation stops at the limit.

Who a Reverse Mortgage Fits (and Who It Doesn’t)

It can be a good fit if you:

• Are 62 or older and plan to stay in your home for many years
• Have a meaningful amount of equity
• Want to pay off an existing mortgage so you no longer have that monthly payment
• Want a line of credit set aside for retirement expenses, home repairs, or care costs
• Are buying a home that fits the next stage of life and want to use a HECM for Purchase (more on that below)
• Can comfortably keep paying property taxes, insurance, and upkeep

It is probably not a good fit if you:

• Expect to move in the next few years. Upfront costs are hard to justify over a short stay.
• Want to leave the house to your heirs free and clear. It can still pass to them, but they would need to pay off or refinance the loan to keep it.
• Struggle to cover property taxes and insurance today. Falling behind on those can put the loan in default.
• Rely on needs-based benefits like Medicaid or SSI. Reverse mortgage money can affect eligibility depending on how and when you use it, so talk with a benefits advisor first.
• Would be better served by a home equity line, a regular refinance, or downsizing. I will tell you if I think that’s the case.

HECM for Purchase: Buying a Home With a Reverse Mortgage

A lot of people don’t know this option exists. With a HECM for Purchase, you can buy a new primary residence using a large down payment plus a reverse mortgage for the rest, and then have no required monthly mortgage payment on the new home.

A few rules to know:

• The down payment has to come from acceptable sources, such as the sale of your current home, savings, or gift funds. You can’t borrow it.
• You generally need to move in within 60 days of closing.
• The required down payment depends on your age, rates, and the price, and it is usually a large share of the purchase price.
• New construction must be complete, with a certificate of occupancy, before closing.

This comes up often for people moving closer to family, moving to a single-level home, or leaving a larger house they no longer need.

Proprietary (Jumbo) Reverse Mortgages

Some private lenders offer reverse mortgages that are not FHA-insured. These are often called proprietary or jumbo reverse mortgages. They may make sense for higher-value homes above the HECM limit, or for some properties that don’t fit FHA rules, such as certain condos. Terms, age requirements, and costs vary by lender, so I compare them side by side with a HECM before recommending one.

The Process, Step by Step

1. Talk with me first. We go over your goals, your home, your current mortgage if you have one, and whether a reverse mortgage is even the right tool. Book a call here.
2. Complete HUD counseling. Before you can move forward with a HECM, you must meet with an independent, HUD-approved counselor. They cover how the loan works, costs, and alternatives. You can find one through HUD at (800) 569-4287. I encourage family members to join if you want them there.
3. Apply. I help you gather documents and review your income and credit. Reverse mortgages include a financial assessment to confirm you can keep up with taxes, insurance, and upkeep. In some cases a portion of the funds is set aside to pay those for you.
4. Appraisal. An FHA appraiser values the home and checks that it meets property standards. If repairs are needed, some can be completed after closing.
5. Underwriting and approval. The lender reviews the file. I stay in contact with them and keep you updated.
6. Closing. You sign the documents. For most refinance-type reverse mortgages on a primary residence, federal rules give you a three-day right to cancel before funds are released.
7. After closing. You keep living in the home, paying taxes and insurance, and maintaining it. You’ll receive account statements showing your balance and available funds.

What a Reverse Mortgage Costs

Reverse mortgages usually cost more upfront than a standard mortgage. Most of these costs can be paid out of the loan instead of out of pocket, but they still reduce your equity.

• Upfront FHA mortgage insurance premium: 2% of the home’s value (up to the HECM limit).
• Annual FHA mortgage insurance premium: 0.5% of the outstanding loan balance, added to the balance over time.
• Origination fee: HUD caps it. A lender can charge the greater of $2,500 or 2% of the first $200,000 of home value plus 1% of the amount above $200,000, with a maximum of $6,000.
• Third-party closing costs: appraisal, title insurance, recording, and similar fees, which vary by county.
• Servicing fee: some loans include a monthly servicing fee, and others build it into the rate.
• Interest: charged on the amount you’ve borrowed and added to the balance.

Because the balance grows, the longer the loan runs, the more equity it uses. I will walk you through a full cost estimate and show how the balance could change over time before you commit to anything.

Want to know where you stand on equity first? Get your home value report.

Reverse Mortgages in Utah and Idaho: Local Help

I’m based in Cache Valley and licensed in both Utah and Idaho, so I work with homeowners on both sides of the state line.

Utah. I’m based in North Logan, and I help homeowners throughout Cache Valley, including Logan, North Logan, Smithfield, Hyde Park, Providence, and Nibley, as well as the rest of the state. Utah home values have risen a lot over the last decade, which means many longtime owners have more equity than they realize. See my Logan mortgage broker page for more on working with me locally.

Idaho. I work with Idaho homeowners from Preston and Franklin County up through Pocatello, Blackfoot, Idaho Falls, and Rexburg, and over to Boise and the Treasure Valley. Southeast Idaho has plenty of homeowners who have owned for decades and have little or no mortgage left. That is often the group a reverse mortgage fits best. Local pages: Preston, Pocatello, Idaho Falls.

Wherever you live, county property tax and insurance costs matter for a reverse mortgage, since you keep paying them. I factor those local costs into the numbers we review.

Why use a broker for a reverse mortgage?

Reverse mortgage pricing and terms can differ from one lender to the next. As a broker, I can compare options from multiple wholesale lenders instead of offering a single company’s product. My job is to explain the tradeoffs plainly and help you choose, or help you decide not to do one at all.

Talk It Through Before You Decide

A reverse mortgage is a big decision, and it often involves family. I’m happy to meet with you and your kids, or anyone else you trust, to go over the numbers together. There is no cost to talk.

Book a call with Caleb or call (208) 943-8696.

Reverse Mortgage FAQs

How old do you have to be to get a reverse mortgage in Utah or Idaho?

For an FHA-insured HECM, the youngest borrower must be at least 62. The rule is the same in both states. Some proprietary reverse mortgages have different age requirements depending on the lender.

Do I have to own my home free and clear?

No. You need significant equity, but you can have an existing mortgage. Part of the reverse mortgage proceeds is used to pay it off, which removes that monthly payment.

What is the maximum reverse mortgage amount in 2026?

For FHA case numbers assigned on or after January 1, 2026, HUD’s HECM maximum claim amount is $1,249,125. The amount you can actually access is a percentage of that figure or your home’s value, whichever is lower, based on age and interest rates.

Can I lose my home with a reverse mortgage?

The loan can become due if you stop living in the home as your primary residence, fall behind on property taxes or insurance, or let the home fall into serious disrepair. Staying current on those obligations is the key to keeping the loan in good standing.

What happens to a reverse mortgage when the borrower dies?

The loan becomes due. Heirs can sell the home and keep any remaining equity, or pay off or refinance the loan to keep it. A HECM is non-recourse, which means heirs are not required to pay more than the home is worth when it is sold to repay the loan.

Can I use a reverse mortgage to buy a home?

Yes. A HECM for Purchase lets you buy a primary residence with a down payment plus a reverse mortgage, with no required monthly mortgage payment afterward. You usually need to move in within 60 days of closing.

Do I need counseling before getting a reverse mortgage?

Yes. HUD requires counseling with an independent, HUD-approved counselor before you can proceed with a HECM. Call (800) 569-4287 to find one.

Caleb Adams, NMLS #2281316. Caleb Adams Mortgage is a trade name of First Class Home Mortgage, Company NMLS #1843. Licensed in Utah, Idaho, and Texas. This is not a commitment to lend. Loan terms vary and not all applicants will qualify. Borrowers must meet program requirements, occupy the home as a primary residence, and keep paying property taxes, homeowners insurance, and maintenance. Consult a tax or benefits advisor about how a reverse mortgage may affect you.