Can You Sell a House With a Reverse Mortgage?

Yes. You can absolutely sell a house with a reverse mortgage. One of the most common misconceptions is that homeowners are locked into the property once they obtain a reverse mortgage. That is generally not true.

You still own the home and remain on title. A reverse mortgage is simply a loan secured against the property, similar to a traditional mortgage.

How Does Selling a Home With a Reverse Mortgage Work?

The process is similar to selling a home with a traditional mortgage, with one major difference: the reverse mortgage balance must be paid off at closing.

When the home sells:

• The reverse mortgage payoff amount is requested

• The loan balance is paid from sale proceeds

• Closing costs and expenses are deducted

• Any remaining equity belongs to the homeowner or estate

Example

Assume:

• Home sells for $450,000 

• Reverse mortgage payoff amount is $275,000 

• Closing costs total $25,000 

After the reverse mortgage and closing expenses are paid, the remaining $150,000 would generally go to the homeowner.

Why Homeowners Sell Homes With Reverse Mortgages

People sell homes with reverse mortgages for many reasons:

• Downsizing to a smaller home

• Moving closer to family

• Relocating for retirement

• Entering an assisted living community

• Reducing maintenance responsibilities

• Taking advantage of increased home values

Life circumstances change, and a reverse mortgage does not take away your ability to move.

Important Things to Know Before Selling

Request a Payoff Statement

Before listing the property, request a current payoff amount from the lender so you understand exactly how much is owed.

Know Your Equity Position

The amount of equity remaining after payoff may affect:

• Your next home purchase

• Retirement plans

• Moving decisions

Timing Matters

If you are purchasing another property or coordinating a move, planning ahead can help make the transition smoother.

Final Thoughts

A reverse mortgage does not prevent you from selling your home. You remain the owner and can choose to sell whenever it fits your goals and circumstances.

Understanding the payoff amount and remaining equity can help you make informed decisions before moving forward.

Thinking about selling and wondering how a reverse mortgage may affect your options? We can help estimate your home value, review your equity position, and discuss your next steps.