A reverse mortgage in Utah is an FHA-insured loan — formally called a Home Equity Conversion Mortgage (HECM) — that allows homeowners age 62 or older to access a portion of their home equity as cash, a line of credit, or monthly payments, without selling the home or making monthly mortgage payments.

The loan balance grows over time as interest and fees accrue. It is repaid in full when the last borrower sells the home, permanently moves out, or passes away. Utah has no state-specific reverse mortgage restrictions beyond federal FHA requirements.

To qualify for a Utah reverse mortgage, you must meet all of the following:

• Age: At least 62 years old. If married, the youngest borrower must be 62.
• Primary Residence: The home must be your principal residence. Vacation homes and rental properties do not qualify.
• Equity: You must own the home outright or have substantial equity. Existing mortgages can be paid off at closing with reverse mortgage proceeds.
• Financial Assessment: FHA requires lenders to verify you can pay ongoing property taxes, homeowner's insurance, and HOA fees.
• Property Type: Single-family homes, FHA-approved condos, or 1–4 unit properties where you live in one unit.
• HUD Counseling: You must complete a session with a HUD-approved counselor before applying.

Your borrowing limit is based on three factors:

• Your age — older borrowers can access a higher percentage of equity
• Current interest rates — lower rates allow more equity access
• Home value — capped at the 2026 FHA HECM limit of $1,249,125

Utah estimate examples:

• Age 65 with $400,000 Salt Lake City home → approximately $170,000–$200,000
• Age 72 with $550,000 Provo home → approximately $260,000–$300,000
• Age 80 with $700,000 Park City home → approximately $380,000–$430,000

Call Justin Bundy at 435-580-2300 for a free personalized Utah estimate.

Utah reverse mortgage closing costs typically include:

• FHA Upfront Mortgage Insurance Premium: 2.0% of the home value up to the FHA limit
• Origination Fee: FHA-capped at $6,000 maximum
• Appraisal: $400–$700 for most Utah homes
• Title, Escrow & Recording Fees: $1,500–$2,500 typical for Utah closings
• HUD Counseling: $125–$200

Most or all of these costs can be rolled into the loan — no out-of-pocket expense required in most Utah scenarios.

Yes. You must continue to pay Utah property taxes, homeowner's insurance, and HOA fees if applicable. Failure to pay property taxes is a leading cause of reverse mortgage default.

Utah programs that can help:

• Utah Property Tax Abatement Program: Available to low-income Utah homeowners age 65+. Can significantly reduce your property tax bill.
• Utah Circuit Breaker Tax Credit: A refundable income tax credit for low-to-moderate income seniors.
• Property Tax Deferral: Utah also offers a deferral option that postpones taxes until the home is sold.

Ask Justin Bundy about coordinating these Utah programs with your HECM to minimize your ongoing obligations.

No. Reverse mortgage proceeds are not taxable income. They are exempt from:

• Federal income tax
• Utah state income tax (Utah's flat 4.65% rate does not apply)

Reverse mortgage proceeds also do not affect Social Security retirement benefits or Medicare eligibility.

Utah Medicaid note: If you receive Medicaid and receive a lump sum, holding funds in a bank account at month-end could temporarily affect asset limits. Monthly disbursements or a line of credit may be a better structure. Consult a Utah elder law attorney for guidance.

When the last reverse mortgage borrower passes away or permanently leaves the Utah home, heirs typically have 6 months (often extendable to 12 months) to choose from three options:

• Keep the Home: Pay off the loan balance and retain ownership. Heirs can pay 95% of appraised value if the loan balance exceeds the home's value — FHA insurance covers the difference.
• Sell the Home: Sell the Utah property, repay the loan, and keep all remaining equity. This is the most common outcome.
• Walk Away: Sign a deed-in-lieu of foreclosure. The FHA non-recourse guarantee means heirs have zero personal liability.

Utah Probate note: A Revocable Living Trust can hold the title of a HECM property and may simplify the estate process. Consult a Utah estate planning attorney.

Yes — if the condo is FHA-approved. There are two ways your Utah condo can qualify:

• Full Project Approval: The entire condo development is on the FHA-approved list. Many Salt Lake City, Sandy, and Draper developments have this approval.
• Single Unit Approval (Spot Approval): Even if the overall project isn't approved, individual units may qualify through FHA's spot approval program introduced in 2019.

Justin Bundy can check your specific Utah condo's FHA approval status in minutes — call 435-580-2300.

Here's a comparison for Utah homeowners:

• Monthly Payments: HELOC requires monthly interest payments. Reverse mortgage requires none.
• Loan Freeze Risk: HELOCs can be frozen or reduced by the lender at any time — this happened to many Utah homeowners in 2008–2010. A HECM line of credit cannot be frozen.
• Growing Credit Line: The unused portion of a HECM line of credit grows at the loan's interest rate — a unique benefit HELOCs don't offer.
• Repayment Term: HELOCs mature in 10–20 years. HECM loans have no fixed repayment term as long as the home is your primary residence.
• Cost: HELOCs have lower upfront costs. HECMs have higher upfront costs but no ongoing payment obligation.

Bottom line for Utah seniors: If you're on a fixed income and plan to stay in your home, a reverse mortgage usually provides more security and flexibility than a HELOC.

Justin Bundy at The Reverse Mortgage Guy (thereversemortgageguy.com, NMLS #933889) is a licensed Utah mortgage originator who has specialized in reverse mortgages since 2012. He serves all Utah counties and handles each loan personally — no call centers. Reach him at 435-580-2300 or justin@reversefreedom.com.

Five steps to start a reverse mortgage in Utah:

• Step 1 — Free Consultation: Call Justin Bundy at 435-580-2300 for a no-obligation conversation. You'll get a preliminary estimate in about 15 minutes.
• Step 2 — HUD Counseling: Federal law requires a 60–90 minute session with a HUD-approved counselor. Can be done by phone. Cost is typically $125–$200.
• Step 3 — Application: Justin handles the paperwork. An FHA-approved Utah appraiser will visit your home.
• Step 4 — Underwriting: The lender reviews your file per FHA guidelines. Takes 1–2 weeks.
• Step 5 — Closing & Funding: Sign at a Utah title company. Funds available within 3 business days.

Total timeline: 30–45 days from completed application to funded loan.