Reverse Mortgages for Homeowners in Denver CO

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Seniors Blue Book

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Posted on

Jul 22, 2026

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For many Denver homeowners, the house they have lived in for years represents more than a place to call home. It may also be one of their largest financial assets. As retirement expenses increase, some older adults begin exploring whether the equity in their home can help them pay off an existing mortgage, complete home improvements, manage healthcare costs, or improve monthly cash flow.

A reverse mortgage is one option that may help eligible homeowners access part of their home equity without selling their property. However, it is a significant financial decision. Families should understand how the loan works, what responsibilities remain with the homeowner, and how the loan could affect future plans.

Fairway Independent Mortgage Corporation offers reverse mortgage options and access to mortgage professionals who can help Denver-area homeowners evaluate whether this type of financing fits their retirement goals.


What Is a Reverse Mortgage?

A reverse mortgage is a home loan designed primarily for homeowners age 62 and older. Like a traditional mortgage, the loan is secured by the borrower’s home. The homeowner keeps the title to the property and continues to own the home.

The key difference is how repayment works. Instead of making required monthly principal and interest payments to the lender, eligible homeowners may receive loan proceeds based on a portion of their available home equity. Interest and fees are added to the loan balance over time, which means the amount owed generally increases rather than decreases.

The most common type is the Home Equity Conversion Mortgage, commonly called a HECM. HECMs are insured by the Federal Housing Administration and are available through FHA-approved lenders.

Depending on the loan and the borrower’s eligibility, proceeds may be available through:

  • A lump-sum payment
  • Monthly advances
  • A line of credit
  • A combination of payment options
  • Funds used to pay off an existing mortgage

Although monthly principal and interest payments are generally not required, the homeowner must continue paying property taxes, homeowners insurance, applicable homeowners association dues, and home maintenance expenses.

Who May Qualify for a Reverse Mortgage?

Eligibility depends on several factors, including the borrower’s age, available home equity, property type, financial situation, and ability to meet ongoing homeownership obligations.

General HECM Eligibility Requirements

Applicants for a standard HECM generally must:

  • Be at least 62 years old
  • Own the home outright or have a mortgage balance that can be paid off at closing
  • Use the property as their principal residence
  • Have sufficient financial resources to cover taxes, insurance, maintenance, and other property charges
  • Meet applicable property and financial assessment requirements
  • Complete counseling with a HUD-approved reverse mortgage counseling agency
  • Address certain delinquent federal debts before or during closing

The property must also meet program requirements. Eligible properties may include certain single-family homes, two-to-four-unit properties in which the borrower occupies one unit, and qualifying condominiums.

When a Reverse Mortgage May Be Worth Exploring

A Denver homeowner might consider learning more about a reverse mortgage when they:

  • Want to remain in their current home during retirement
  • Have substantial equity but limited monthly income
  • Would like to pay off an existing traditional mortgage
  • Need funds for accessibility improvements or home maintenance
  • Want an additional source of retirement cash flow
  • Are considering purchasing a different primary residence
  • Want to avoid selling investments during an unfavorable market period

A reverse mortgage will not be appropriate for everyone. Homeowners planning to move soon, individuals who cannot comfortably maintain property expenses, or families that have not discussed their inheritance goals should carefully compare other options.


Fairway Independent Mortgage Corporation

Phone: 720-849-7389

Fairway Independent Mortgage Corporation provides several reverse mortgage products for qualified older homeowners, including traditional HECMs, HECMs for Purchase, and jumbo reverse mortgage options for certain higher-value properties. The company also maintains Denver-area loan officers and office locations that can assist local borrowers with mortgage questions.

Home Equity Conversion Mortgages

A HECM may allow an eligible homeowner to convert part of their home equity into available funds. The borrower continues to own and live in the property while remaining responsible for property taxes, insurance, maintenance, and applicable association fees.

Fairway explains that borrowers may be able to receive their proceeds as a lump sum, line of credit, monthly cash-flow payment, or combination of these options. Available payment choices can depend on the specific loan structure and whether the interest rate is fixed or adjustable.

The amount available is not based on equity alone. The calculation may consider:

  • The age of the youngest eligible borrower
  • The home’s appraised value
  • Current interest rates
  • The existing mortgage balance
  • The borrower’s selected payment structure
  • Program lending limits and requirements

A Fairway reverse mortgage professional can prepare estimates and explain how different structures may affect the available proceeds and future loan balance.

HECM for Purchase

Some Denver-area adults want to move into a home that is easier to maintain, closer to family, or better suited for aging in place. A HECM for Purchase, sometimes abbreviated as H4P, may allow qualified buyers age 62 and older to purchase a new primary residence using a combination of their own funds and reverse mortgage financing.

The buyer provides a required down payment at closing, and the HECM finances the remaining eligible portion. After closing, the borrower is generally not required to make monthly principal and interest payments, provided the loan requirements continue to be met.

This option may be useful for someone selling a longtime Denver home and purchasing a one-level property, lower-maintenance residence, or home with accessibility features. It may also allow the buyer to retain more of their available savings than they would by paying the entire purchase price in cash.

Jumbo Reverse Mortgage Options

Fairway also offers jumbo reverse mortgage products designed for certain homeowners with higher-value properties. These proprietary loans are different from FHA-insured HECMs and may have different age requirements, loan limits, costs, protections, and qualification standards.

Homeowners considering a jumbo reverse mortgage should ask for a clear comparison between the proprietary product and a federally insured HECM. The comparison should include interest rates, fees, available proceeds, repayment requirements, non-recourse protections, and options for spouses or heirs.

When Does a Reverse Mortgage Become Due?

A reverse mortgage generally becomes due when the last eligible borrower:

  • Sells the home
  • Permanently moves out
  • Dies
  • Stops using the property as a principal residence
  • Fails to meet important loan obligations

A loan may also become due when a borrower spends more than 12 consecutive months in a healthcare facility and no co-borrower or qualifying eligible non-borrowing spouse remains in the home.

When the loan becomes due, the home may be sold and the proceeds used to repay the balance. Heirs may also have options to keep the property by paying the required amount, subject to the loan’s terms and federal requirements.

Why Reverse Mortgage Guidance Matters in Denver

Denver homeowners face a wide range of retirement situations. Some have lived in the same home for several decades and have built meaningful equity. Others still have a traditional mortgage and want to reduce required monthly expenses before or during retirement.

Housing decisions can also be connected to mobility, family support, transportation, home maintenance, and access to healthcare. A homeowner may be deciding whether to renovate a familiar property, move closer to adult children, or purchase a smaller residence with fewer stairs.

Denver’s seasonal weather can add another consideration. Roof repairs, heating-system maintenance, snow removal, exterior upkeep, and accessibility improvements can become more difficult or expensive as homeowners age.

Accessing home equity could help address some of these needs, but the decision should be based on a complete retirement plan rather than a single short-term expense. Borrowers should consider how the loan may affect their future housing choices, estate plans, public benefits, and available equity.

How to Get Started

1. Clarify Your Main Goal

Determine why you are considering a reverse mortgage. Your goal might be to eliminate an existing mortgage payment, create a financial reserve, modify the home, manage healthcare expenses, or purchase another residence.

Having a clear purpose makes it easier to compare loan options.

2. Estimate Your Home Equity

Review your estimated property value and current mortgage balance. A professional appraisal will normally be required during the loan process, but an initial estimate can help you begin the conversation.

3. Review Your Ongoing Housing Costs

Create a budget for:

  • Property taxes
  • Homeowners insurance
  • Homeowners association dues
  • Utilities
  • Routine maintenance
  • Major repairs
  • Snow removal or lawn care
  • Accessibility improvements

Make sure these costs remain manageable even without required monthly principal and interest payments.

4. Speak With Fairway Independent Mortgage Corporation

Contact a Fairway reverse mortgage professional and ask for a personalized review. Discuss both HECM and proprietary options that may be available based on your age, home value, equity, and retirement plans.

Ask for written estimates showing projected costs, proceeds, interest, and loan balances over time.

5. Complete Independent Counseling

HECM applicants must complete counseling with a HUD-approved reverse mortgage counseling agency. The counselor reviews the loan’s financial implications, borrower responsibilities, costs, and possible alternatives.

Counseling is an important opportunity to ask questions with someone who is not employed by the lender.

6. Compare Alternatives

Before making a final decision, compare a reverse mortgage with other possibilities, such as:

  • Refinancing
  • A home equity loan
  • A home equity line of credit
  • Selling and downsizing
  • Using other savings or investments
  • Property-tax assistance programs
  • Local home-repair assistance
  • Adjusting monthly expenses

The best option depends on the homeowner’s complete financial and housing situation.

7. Include Family and Professional Advisors

Discuss the decision with anyone who may be affected by the future sale or inheritance of the home. A financial advisor, tax professional, elder law attorney, or estate-planning attorney can provide guidance outside the lender’s area of expertise.


This article was researched and written by Seniors Blue Book. Seniors Blue Book connects seniors, families, and caregivers with trusted local senior care resources across the country. Browse local listings, read expert articles, and order a free printed guide at seniorsbluebook.com.

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