See how a drop in home values could affect your reverse mortgage qualification. Model different decline scenarios and understand the real impact on your available cash proceeds.
Program & Borrower
Choose the product type to apply the correct age and LTV rules.
Property & Mortgage
Estimated current market value of your home.
$
Total current liens to be paid off at closing.
$
Scenario Testing
Model a potential home value decline and see how it affects your loan eligibility.
0%25%50%
HECM Lending Limit Applied: Your home value of exceeds the 2026 FHA cap of $1,249,125. Calculations use the capped value.
Loan Qualification Comparison
Original Scenario
Property Value
Effective Value
Max LTV
Principal Limit
Cash Available
After % Decline
Property Value
Effective Value
Max LTV
Principal Limit
Cash Available
⚠ Cash to Close Required: After the % decline, you would need to bring approximately to closing to cover the shortfall between your mortgage balance and the reduced principal limit.
Critical Impact Analysis
Property Value Drop
Cash Proceeds Drop
Available cash lost
Cash Reduction %
Of available cash
A property value drop could reduce your available cash by
().
While property values drop by %, your available cash drops by % — a disproportionate impact because your mortgage balance consumes a larger share of the reduced principal limit.
HECM vs. Jumbo Program Comparison
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FHA HECM
Jumbo
Minimum Age
62
55
Max LTV (Your Age)
Effective Value
Principal Limit
Est. Cash-Out
Value Cap
$1,249,125
None
Green values indicate the higher estimate. Comparison uses your original (pre-decline) property value. Actual amounts depend on lender guidelines, rates, and fees.
Disclaimer: This calculator is for informational and educational purposes only and provides simplified estimates. It does not constitute financial, legal, or tax advice, nor does it guarantee loan approval or specific proceeds. Actual reverse mortgage terms and eligibility depend on many factors including interest rates, lender/investor guidelines, fees and closing costs, property type, occupancy requirements, payoff demands, set-asides, and financial assessment. Reverse mortgage principal limits may not scale linearly with property value due to PLFs, age rules, rate assumptions, and caps. FHA HECM calculations are based on the 2026 county limit of $1,249,125. Consult a qualified reverse mortgage professional for a personalized quote and official eligibility determination.