If you are 62 or older and have built substantial equity in your Colorado Springs home, a reverse mortgage can turn that equity into cash you can generally use tax-free, a growing line of credit, or monthly income — without a required monthly mortgage payment. A Home Equity Conversion Mortgage (HECM) is FHA-insured and built specifically for older homeowners who want to stay in their home while putting their equity to work. Because this is a major financial decision, we walk you through every obligation and alternative first. (NMLS #1601989, Equal Housing Lender.)
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What is a reverse mortgage (HECM)?
A reverse mortgage is a loan that lets homeowners age 62 and older convert part of their home equity into cash. Unlike a traditional mortgage, you are not required to make monthly principal-and-interest payments. Instead, the loan balance grows over time as interest and fees are added, and it is repaid later — typically when the last borrower sells the home, permanently moves out, or passes away. The most common type is the FHA-insured Home Equity Conversion Mortgage, or HECM.
You keep the title to your home, and you choose how to receive the money: a one-time lump sum, a line of credit you draw on as needed, monthly payments, or a combination. Critically, a HECM is a non-recourse loan — you and your heirs will never owe more than the home is worth when it is sold to repay the balance. The FHA insurance covers any shortfall.
Reverse mortgages for Colorado Springs & El Paso County homeowners
Home values across Colorado Springs, Monument, Falcon, Fountain, and the rest of El Paso County have climbed substantially over the past decade. Many longtime homeowners are equity-rich but want more monthly cash flow in retirement. A reverse mortgage can help cover property taxes, healthcare, home repairs, or simply provide breathing room — while letting you age in place in the home and neighborhood you know. As a local broker, 719 Lending sits down with you (and, when you want, your family or advisor) to model the numbers against your specific home and goals before you commit to anything.
Benefits
- No required monthly mortgage payment (you must still keep up with taxes, insurance, and upkeep).
- Flexible access to equity: lump sum, line of credit, monthly income, or a mix.
- Non-recourse protection — you or your heirs never owe more than the home’s value at sale.
- You retain ownership and title to your home.
- Loan proceeds are generally not treated as taxable income (consult your tax advisor).
- With an adjustable-rate HECM line of credit, the available unused credit line can grow over time.
Requirements & eligibility
- The youngest borrower must be at least 62 years old.
- The home must be your primary residence.
- You must own the home outright or have significant equity (a large remaining balance may limit eligibility).
- You must complete independent counseling with a HUD-approved counselor before applying — this is required by law.
- You must demonstrate the ability and willingness to keep paying property taxes, homeowners insurance, and any HOA dues, plus maintain the home.
- The property and the borrower must pass an FHA financial assessment and appraisal.
The process in Colorado Springs
- Free consultation. We review your goals, your home, and your equity, and compare a reverse mortgage against alternatives like a HELOC or refinance.
- HUD counseling. You meet with an independent HUD-approved counselor who confirms you understand the loan, costs, and obligations.
- Application & appraisal. We order an FHA appraisal of your home and complete the required financial assessment.
- Underwriting & choosing your payout. You select lump sum, line of credit, term, or tenure payments — or a combination.
- Closing & funding. After a federal right-of-rescission period, funds are disbursed according to the option you chose.
How a reverse mortgage compares to other options
A reverse mortgage is not always the best tool. Depending on your age, income, and how long you plan to stay, another product may fit better. Compare your options with our local team:
- Mortgage refinance in Colorado Springs — if you can comfortably make a monthly payment and want to lower your rate or pull cash out.
- Conventional fixed-rate mortgage — a predictable, fully amortizing alternative.
- Low-down-payment purchase options — if you are buying rather than tapping equity.
- Explore all 719 Lending loan options »
Note: a HELOC (home equity line of credit) is a common alternative that requires monthly payments but has lower upfront costs — ask us to compare it side by side with a HECM.
Why Colorado Springs chooses 719 Lending
We are a local Colorado Springs broker, not a national call center. With reverse mortgages especially, we believe in slow, transparent guidance — explaining every cost, obligation, and alternative so you and your family can decide with confidence. Read what our clients say on our reviews page.
Colorado Springs reverse mortgage FAQ
Do I lose ownership of my house with a reverse mortgage?
No. You keep the title and remain the owner of your home. The lender places a lien (like any mortgage), and you can sell or move at any time. The loan simply becomes due when the last borrower permanently leaves the home, sells it, or passes away.
What happens to my reverse mortgage when I die?
The loan becomes due and payable. Your heirs typically have options: sell the home and keep any remaining equity, pay off the loan (the lesser of the loan balance or 95% of the appraised value) to keep the home, or sign the home over to the lender. Because a HECM is non-recourse, your heirs are never personally liable beyond the home’s value.
Can I lose my home with a reverse mortgage?
Yes, if you stop meeting your obligations. You must keep paying property taxes and homeowners insurance, maintain the home, and continue to live there as your primary residence. Failing to do so can trigger a default and foreclosure, which is exactly why HUD counseling and our upfront planning matter so much.
How much money can I get from a reverse mortgage in 2026?
It depends on your age, current interest rates, and your home’s appraised value, subject to the FHA HECM maximum claim amount, which is $1,249,125 for 2026. Older borrowers and lower interest rates generally allow access to more equity. We can run a personalized estimate so you can see your potential numbers. Request a quote to get started.
719 Lending, NMLS #1601989. Equal Housing Lender. This is not a commitment to lend; all loans are subject to credit approval, HUD-required independent counseling, an FHA financial assessment, and a property appraisal. A reverse mortgage / Home Equity Conversion Mortgage (HECM) is a loan that must be repaid; the balance grows over time as interest and fees accrue, and it reduces the equity available to you and your heirs. You must continue to pay property taxes, homeowners insurance, and any applicable HOA dues, and maintain the property, or the loan may become due and payable. HECMs are insured by the Federal Housing Administration (FHA); 719 Lending is not affiliated with or acting on behalf of HUD, the FHA, or any government agency. The 2026 FHA HECM maximum claim amount of $1,249,125 and all other figures are current as of 2026 and subject to change. Consult a tax advisor regarding the tax treatment of loan proceeds. See if you may qualify by speaking with our team.