February 1, 2026
Many homeowners understand that an FHA-insured Home Equity Conversion Mortgage (HECM), commonly called a reverse mortgage, does not require monthly principal and interest payments. That feature can provide significant financial flexibility during retirement.
However, a reverse mortgage is not a loan that can simply be ignored after closing. Borrowers must continue meeting certain obligations throughout the life of the loan. If those obligations are not met, the reverse mortgage may become due and payable.
A due and payable event means the loan balance must be repaid. In some situations, repayment occurs because the loan has reached a normal maturity event. In others, the loan becomes due because the borrower has defaulted on the terms of the agreement.
Understanding these requirements before obtaining a reverse mortgage can help borrowers, spouses, family members, and heirs avoid unexpected problems in the future.
What Does ‘Due and Payable’ Mean?
When a reverse mortgage becomes due and payable, the outstanding loan balance must generally be repaid. Repayment may occur through the sale of the home, a refinance into another mortgage product, or payment from other available funds.
Many borrowers assume the loan only becomes due when the home is sold. While selling the property is one common trigger, several other situations can also cause repayment to be required.
5 Reasons an FHA Reverse Mortgage Can Become Due and Payable
- Death of the Last Remaining Borrower
One of the most common maturity events occurs when the last surviving borrower dies. At that point, the reverse mortgage generally becomes due and payable.
Heirs are not automatically required to surrender the home. In many cases, they may sell the property, refinance the balance into a traditional mortgage, or pay off the loan using other available assets.
Certain protections may also be available for Eligible Non-Borrowing Spouses under HUD guidelines when specific requirements are met.
- Failure to Pay Property Taxes, Insurance, HOA Fees, or Other Property Charges
A common misconception is that reverse mortgage borrowers have no ongoing housing expenses. While monthly mortgage payments are not required, borrowers remain responsible for property taxes, homeowners insurance, flood insurance when required, homeowners association dues, condominium fees, ground rents, and certain special assessments.
Failure to keep these obligations current can place the loan in default and may result in the servicer declaring the loan due and payable.
Borrowers experiencing financial difficulties should contact their servicer as soon as possible rather than waiting for the situation to worsen.
- The Home Is No Longer the Borrower’s Principal Residence
HECM loans are intended for owner-occupied principal residences. Generally, the property must remain the place where the borrower lives most of the year.
If a borrower permanently relocates, establishes another principal residence, or otherwise ceases to occupy the home as required, the reverse mortgage may become due and payable.
Occupancy changes should always be reported to the loan servicer.
- The Borrower Is Away From the Home for More Than 12 Consecutive Months
Health-related absences can create unique challenges for reverse mortgage borrowers.
If a borrower remains in a nursing home, rehabilitation center, assisted living facility, or similar healthcare setting for more than 12 consecutive months, the property may no longer qualify as the borrower’s principal residence.
In many situations, this can cause the reverse mortgage to become due and payable unless another qualifying borrower remains in the property or applicable spouse protections apply.
Long-term care planning is an important consideration for reverse mortgage borrowers and their families.
- Failure to Maintain the Property
Borrowers remain responsible for maintaining the home and protecting its condition.
Significant deferred maintenance, structural deterioration, safety hazards, unrepaired damage, or severe neglect may violate the terms of the reverse mortgage agreement.
Routine maintenance helps preserve both the value of the property and compliance with FHA requirements.
Can a Reverse Mortgage Be Foreclosed On?
Yes. Although reverse mortgage borrowers are not required to make monthly principal and interest payments, foreclosure is still possible when the borrower fails to meet loan obligations.
Common causes include unpaid property taxes, lapsed insurance coverage, failure to maintain the property, or failure to occupy the home as a principal residence.
What Should You Do If You Receive a Due and Payable Notice?
A due and payable notice should never be ignored. Borrowers, spouses, heirs, or family members should contact the loan servicer immediately to understand available options and applicable deadlines.
In many cases, it may also be helpful to speak with a HUD-approved housing counselor or an attorney familiar with reverse mortgage issues.
The Bottom Line
An FHA reverse mortgage can be a valuable retirement planning tool, but it comes with ongoing responsibilities. Understanding the situations that can trigger repayment can help borrowers avoid surprises and remain in good standing with their loan obligations.
FHA Reverse Mortgage Due and Payable FAQ
Q: Do I have to make monthly payments on an FHA reverse mortgage?
No. FHA reverse mortgages do not require monthly principal and interest payments as long as the borrower continues meeting all loan obligations.
Q: What expenses do I still have to pay with a reverse mortgage?
Borrowers remain responsible for property taxes, homeowners insurance, flood insurance when required, HOA dues or condominium fees when applicable, and property maintenance.
Q: What happens to a reverse mortgage when the borrower dies?
The loan generally becomes due and payable when the last borrower dies. Heirs may sell the property, refinance the balance, or repay the loan using other funds.
Q: Can I lose my home with a reverse mortgage?
Yes. Borrowers can face default or foreclosure if they fail to meet occupancy, tax, insurance, or maintenance requirements.
Q: How long can I be in a nursing home before a reverse mortgage becomes due?
Generally, a borrower who remains in a healthcare facility for more than 12 consecutive months may trigger a due and payable event if the property no longer qualifies as the borrower’s principal residence.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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