Reverse Mortgage in Pennsylvania
A reverse mortgage in Pennsylvania gives homeowners 62 and older access to their home equity — with no monthly mortgage payments required. Dynamic Funding Solutions, Inc. helps PA homeowners convert that equity into tax-free funds through the FHA-insured Home Equity Conversion Mortgage (HECM) program. Call us today at (215) 364-7171.
Lena Polnet (NMLS #17225) has 30+ years of mortgage experience. She works directly with homeowners across Montgomery County, Bucks County, Delaware County, Chester County, and Philadelphia County. Our network includes 100+ lenders. We find the right HECM solution for your situation.
Contact Us: Reverse Mortgage (HECM) in Pennsylvania
Dynamic Funding Solutions, Inc.
51 Buck Road, Suite A,
Huntingdon Valley,
PA
19006
PA: (215) 364-7171
FL: (561) 247-4888
dynamicfunding.net
Business Hours: Monday–Friday, 9:00 AM – 5:00 PM ET. Evening and weekend appointments available by request.
How a Reverse Mortgage (HECM) Works in Pennsylvania
The Home Equity Conversion Mortgage is the only federally insured reverse mortgage program. The FHA backs it. HUD governs it. It lets eligible homeowners tap their equity without selling their home.
Here is how it works:
- You must be 62 years of age or older.
- The home must be your primary residence.
- You retain the title to your home.
- No monthly mortgage payments are required.
- The loan balance grows over time as interest accrues.
- The loan becomes due when you sell the home, move out permanently, or pass away.
You can receive HECM funds as a lump sum, a line of credit, monthly installments, or a combination. The amount you qualify for depends on your age, current interest rates, and your home’s appraised value.
Before closing, every borrower must complete a counseling session with a HUD-approved counselor. This is federal law. The counselor reviews the loan terms, your obligations, and your alternatives. Dynamic Funding Solutions guides you through every step of that process.
We serve homeowners in Huntingdon Valley, Lansdale, Doylestown, Media, West Chester, Phoenixville, and throughout the Philadelphia metro area.
Pennsylvania-Specific Considerations for HECM Borrowers
Pennsylvania has specific rules that affect reverse mortgage borrowers. You need to know them before you close.
PA Inheritance Tax: Pennsylvania imposes an inheritance tax on assets passed to heirs. A home with a reverse mortgage balance is subject to this. The net value — home value minus the loan balance — passes to your heirs. Your estate settles the HECM loan first. Heirs receive the remaining equity. Consult a PA estate attorney to plan accordingly.
PA Homestead and Farmstead Exclusion: Pennsylvania’s homestead exclusion reduces your assessed property value for local tax purposes. A reverse mortgage does not eliminate this benefit. You still own the home. You still qualify for the exclusion as long as the property remains your primary residence. Losing the homestead exclusion status — by vacating the home — can trigger the loan’s due-and-payable clause.
Property Tax and Insurance Obligations: You must continue paying property taxes, homeowner’s insurance, and HOA fees if applicable. Failing to pay these is a loan default. Dynamic Funding Solutions reviews all ongoing obligations with you before you close.
HUD-Approved HECM Counseling in PA: Pennsylvania has multiple HUD-approved counseling agencies. Sessions are available in person, by phone, and online. We provide a referral list when you start your application.
Who Qualifies for a Reverse Mortgage in Pennsylvania
HECM eligibility requirements are straightforward. You must meet all of the following:
- Age 62 or older (all borrowers on title must meet this requirement)
- Home is your primary residence
- Home is a single-family property, FHA-approved condo, or manufactured home meeting HUD standards
- Sufficient home equity — typically significant equity or outright ownership
- Financially able to maintain taxes, insurance, and upkeep
- No delinquent federal debt
Dynamic Funding Solutions reviews your full financial profile. We work with homeowners across our full range of mortgage services to identify the best path forward. Contact us to start your free consultation.
Frequently Asked Questions About Reverse Mortgage (HECM) in Pennsylvania
How does a reverse mortgage work in Pennsylvania?
A reverse mortgage in Pennsylvania lets homeowners 62 and older borrow against their home equity without making monthly mortgage payments. The FHA-insured HECM is the most common type. The loan is repaid when the homeowner sells the property, permanently moves out, or passes away. The borrower retains the title and must continue paying property taxes, insurance, and maintenance costs. Before closing, every borrower completes a session with a HUD-approved counselor.
What are the Pennsylvania tax implications of a reverse mortgage?
Reverse mortgage proceeds are generally not considered taxable income by the IRS. However, Pennsylvania’s inheritance tax applies to the net equity passed to heirs after the loan balance is repaid. The home’s assessed value for the PA homestead exclusion is not affected while it remains your primary residence. Consult a Pennsylvania estate planning attorney and a tax advisor to understand your specific situation.
What is the age requirement for a reverse mortgage in Pennsylvania?
All borrowers listed on the home’s title must be at least 62 years old to qualify for a HECM reverse mortgage in Pennsylvania. A younger non-borrowing spouse may remain in the home under certain HUD protections, but they will not be a borrower on the loan. Age also affects how much equity you can access — older borrowers generally qualify for a higher loan amount.
Can you lose your home with a reverse mortgage in Pennsylvania?
Yes, under specific conditions. A HECM becomes due and payable if you fail to pay property taxes, let homeowner’s insurance lapse, stop using the home as your primary residence, or fail to maintain the property. These are loan defaults. If left unresolved, foreclosure is possible. Dynamic Funding Solutions explains all obligations in detail before you close so you understand exactly what is required to keep your home.
What happens to my heirs when I have a reverse mortgage in Pennsylvania?
When the last borrower passes away, heirs have options. They can sell the home and use the proceeds to repay the loan, keeping any remaining equity. They can pay off the HECM balance and keep the home. Or they can walk away and allow the lender to sell the home — they owe nothing beyond the home’s value because HECM is a non-recourse loan. Pennsylvania’s inheritance tax applies to the net equity transferred to heirs. An estate attorney can help plan for this.
Dynamic Funding Solutions, Inc. NMLS #17144 | Lena Polnet NMLS #17225 | Licensed in Pennsylvania and Florida | Equal Housing Lender