Home Equity Conversion Mortgage · Age 62+
Reverse Mortgages in Colorado (HECM)
An FHA-insured HECM lets Colorado homeowners 62 and older turn equity into cash, monthly income or a growing line of credit, with no required monthly principal and interest payment. Colorado layers its own counseling attestation and benefit protections on top of the federal rules.
Overview
A federal program, with Colorado rules layered on top.
A Home Equity Conversion Mortgage is insured by FHA and regulated by HUD, so the loan itself works the same everywhere. Colorado then adds its own reverse mortgage article, C.R.S. Title 11, Article 38. It requires your written attestation that you were advised to obtain independent counseling and did so (or waived it in writing), it protects you from a due-and-payable trigger for absences under 60 days, and — the provision that matters most to households on assistance — it treats reverse mortgage payments as loan proceeds rather than income for SSI, LEAP and the Colorado Medical Assistance Act. What varies most across Colorado is not the loan, it is the bill you have to keep current: assessment rates, metro district mill levies and some of the fastest-rising homeowners insurance premiums in the country all land inside the taxes-and-insurance obligation that keeps a HECM in good standing.
Colorado license 100530548 · NMLS 1352284 · Westminster, Denver, Aurora, Thornton, Brighton and statewide · Reverse mortgage overview
Who it is for
Is a reverse mortgage right for you in Colorado?
- Colorado homeowners 62 and older who intend to stay in the home
- Front Range retirees whose property tax and insurance costs keep climbing
- Owners who have held the home 10+ years and claim the senior property tax exemption
- Retirees who want a standby line of credit instead of selling investments in a down market
- Buyers right-sizing within Colorado using HECM for Purchase
- Not a fit if you may move soon or cannot cover taxes, insurance and upkeep
Highlights
What is different about a Colorado reverse mortgage
Colorado counseling attestation
C.R.S. 11-38-111 requires your written attestation that you were advised to get independent counseling and obtained it, on top of the HUD counseling session.
Benefits are protected
C.R.S. 11-38-110 treats reverse mortgage payments as loan proceeds, not income, for SSI, LEAP and Colorado Medical Assistance purposes.
Keep the senior exemption
Colorado exempts 50% of the first $200,000 of value for owners 65+ who have owned and occupied for 10 consecutive years. A HECM leaves you on title, so that test still turns on your ownership.
Tax deferral needs consent
The State Treasurer allows future deferrals on a home with a reverse mortgage only with a subordination agreement from the lender, and taking a reverse mortgage after a deferral makes that deferral due.
Metro districts raise the bar
A metro district mill levy can add well over a hundred dollars a month to the taxes you must keep current. Check the levy for the address before you borrow.
Insurance is the wild card
Colorado premiums have roughly doubled since 2019, driven by hail. Insurance is part of the obligation that keeps a HECM in good standing, so budget for increases.
Questions
Colorado reverse mortgage questions
Does a reverse mortgage affect the Colorado senior property tax exemption?
It should not. The exemption asks whether you are the owner of record and have owned and occupied the home for 10 consecutive years, and with a HECM you keep title. Applications run January 1 through July 15 through your county assessor, so confirm your status there.
Can I use Colorado’s property tax deferral program with a reverse mortgage?
Only with your lender’s cooperation. The State Treasurer requires a subordination agreement from the reverse mortgage lender for future deferrals, and if you take out a reverse mortgage after a deferral is granted, the deferred amount becomes due.
Does Colorado require counseling for a reverse mortgage?
Yes, in two ways. HUD requires an independent counseling session, and Colorado requires your written attestation that you were advised to obtain counseling and did so, or that you waived it in writing.
How much will property taxes be on my Colorado home?
For the 2026 tax year, residential value is assessed at 7.05% for school taxes and 6.8% for local government taxes after a reduction of 10% of the first $700,000 of value. Multiply each assessed value by its mill levies. A metro district adds its own levy on top.
Ready to explore a reverse mortgage in Colorado?
Every scenario is different, and Colorado’s assessment rates, metro district levies and insurance costs change the math. Let’s talk through yours. Call (303) 557-3846 or start online.
This material is not from HUD or FHA and has not been approved by HUD or any government agency. This page is educational and is not financial, tax, or legal advice, and it is not a commitment to lend. State and local figures cited are current as of September 2026 and change — confirm exemption amounts, income limits and program rules with your county and the applicable state agency. A reverse mortgage is a loan secured by your home. You must continue to pay property taxes, homeowners insurance and any HOA dues, maintain the property, and occupy it as your principal residence; failure to do so may cause the loan to become due and payable. Borrower must be 62 or older. Independent HUD-approved counseling is required. All loans subject to credit approval, property valuation and program guidelines. David Silva, NMLS 1352284. Equal Housing Lender.