Yes, but your specific immigration status is the single most important factor. The primary conflict arises from a federal rule, HUD Mortgagee Letter 2025-09, which took effect on May 25, 2025. This directive makes anyone who is not a U.S. citizen or a Lawful Permanent Resident (Green Card holder) ineligible for the safest and most common type of reverse mortgage, creating a significant protection gap for a large group of homeowners. This rule change is particularly impactful, as historically, communities of color—which include many immigrant families—have been disproportionately affected by reverse mortgage foreclosures.
Here is what you will learn by reading this guide:
- ❓ Discover which specific immigration statuses qualify for which type of reverse mortgage.
- ⚖️ Understand the critical differences between a federally-insured HECM and a private proprietary loan.
- 🚫 Learn how a new federal rule completely blocks certain non-citizens from the most protected reverse mortgage program.
- 🗺️ Navigate key state-specific laws in places like California, Texas, and New York that add another layer of rules.
- ⚠️ Identify the unique risks non-U.S. citizens face, from foreclosure triggers to threats against their residency status.
The Two Worlds of Reverse Mortgages: HECM vs. Proprietary
A reverse mortgage is not a government benefit; it is a complex loan that allows homeowners 62 or older to borrow against their home’s value without making monthly payments. The loan, plus all interest and fees, is repaid only when the homeowner sells, permanently moves out, or passes away. Understanding this product requires knowing the two distinct types of loans available.
The first and most common type is the Home Equity Conversion Mortgage (HECM). This loan is insured by the Federal Housing Administration (FHA), an agency within the U.S. Department of Housing and Urban Development (HUD). This federal insurance provides powerful protections, most notably the “non-recourse” guarantee, which ensures you or your heirs will never owe more than the home’s value, even if the loan balance grows larger.
The second type is the proprietary reverse mortgage. These are private loans created and funded by banks and other financial institutions without any government insurance. Because they are not bound by FHA rules, they can be more flexible, often offering larger loan amounts and sometimes being available to homeowners as young as 55.
The relationship between these two loan types and a borrower’s immigration status is now the central issue. The FHA, as a federal agency, must follow federal immigration policies, which directly impacts who can get a HECM. Private lenders, however, set their own rules, creating an alternative but less-regulated path for those excluded by the government.
The Unforgiving Federal Rule: Why Your Immigration Status Now Determines Everything
The landscape for non-U.S. citizen borrowers was split in two by a single government directive. HUD Mortgagee Letter 2025-09 established a bright-line rule that dictates eligibility for all FHA-insured loans, including the HECM reverse mortgage. This rule was created to reduce the financial risk to the FHA insurance fund, with HUD stating that the uncertain legal status of some residents poses a challenge to ensuring long-term financial obligations can be met.
The direct consequence is that your ability to access the most consumer-friendly reverse mortgage is no longer based on your financial stability, age, or home equity alone. It is now based entirely on the type of document you hold from U.S. Citizenship and Immigration Services (USCIS). This has created two separate and unequal paths for older homeowners.
Path 1: Lawful Permanent Residents (Green Card Holders)
For individuals who are Lawful Permanent Residents, often called “Green Card” holders, the path to a HECM remains open. FHA policy explicitly states that LPRs are eligible for its insured mortgages under the same terms and conditions as U.S. citizens. This means if you are over 62, have sufficient home equity, and meet the other standard requirements, your status as a non-citizen LPR is not a barrier.
To get the loan, you must provide the lender with a valid Permanent Resident Card (Form I-551) to prove your status. Lenders are required to verify this documentation and cannot rely on a Social Security card alone as proof of legal residency. This policy of parity gives Green Card holders the choice between the federally-insured HECM and a private proprietary loan.
Path 2: Non-Permanent Residents (Visa Holders, DACA, and Others)
For every other non-U.S. citizen who is legally in the country but does not have permanent residency, the door to a HECM is now closed. The HUD Mortgagee Letter 2025-09, effective for all FHA case numbers assigned on or after May 25, 2025, completely eliminated eligibility for this group.
This rule affects a wide range of people, including those on temporary work visas (like H-1B or L-1), individuals with Deferred Action for Childhood Arrivals (DACA) status, and asylum seekers or refugees who have not yet obtained a Green Card. For these individuals, their only option for a reverse mortgage is to seek a more expensive and less-regulated proprietary loan from a private lender.
Real-World Scenarios: How the Rules Impact Homeowners
Abstract rules become clear when applied to real people. The following scenarios illustrate the starkly different outcomes for non-U.S. citizens based on their specific status and timing.
Scenario 1: The Prepared Green Card Holder
Elena, a 70-year-old Lawful Permanent Resident, owns her home outright but needs extra funds for healthcare costs. She wants the safest loan possible. Because her status is treated the same as a U.S. citizen’s, she can apply for a federally-insured HECM.
| Action | Consequence |
| Elena provides her valid Green Card (Form I-551) to an FHA-approved lender. | Her legal status is verified, and she is deemed eligible to proceed with the application. |
| She completes the mandatory HUD-approved counseling session. | She receives a certificate confirming she understands the loan’s risks and obligations. |
| Her application passes the financial assessment, showing she can pay taxes and insurance. | She is approved for a HECM and gains access to her home equity with federal protections. |
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Scenario 2: The H-1B Visa Holder After the Deadline
Raj, a 65-year-old engineer, has lived and worked in the U.S. for 15 years on an H-1B visa. He has significant equity in his home and applies for a HECM in June 2025, after the new rule took effect.
| Action | Consequence |
| Raj submits his HECM application with his valid H-1B visa documentation. | The lender requests an FHA case number after the May 25, 2025 deadline. |
| The lender reviews his application against the new rules in HUD Mortgagee Letter 2025-09. | His application is immediately denied based on his non-permanent resident status. |
| Raj is informed he is ineligible for any FHA-insured loan. | He is forced to seek a private proprietary loan, which comes with higher interest rates and fewer protections. |
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Scenario 3: The Non-Permanent Resident Navigating the Private Market
Following his HECM denial, Raj explores his only remaining option: a proprietary reverse mortgage. He finds a private lender that offers “Foreign National” loan programs designed for non-U.S. citizens.
| Action | Consequence |
| Raj provides his visa and proof of stable employment to the private lender. | The lender’s underwriting team assesses his application based on their own internal risk policies, not FHA rules. |
| The lender requires him to have more home equity and charges a higher interest rate. | This is to compensate for the lack of FHA insurance and the perceived risk of his temporary immigration status. |
| He carefully reviews the loan documents, noting a clause about what happens if his visa isn’t renewed. | He successfully obtains a reverse mortgage but accepts higher costs and the risk that his housing is tied to his employment status. |
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HECM vs. Proprietary Loan: A Head-to-Head Comparison
For those who have a choice, and for those who do not, understanding the differences between these two loan types is critical. The federally-insured HECM is built around consumer protection, while the proprietary loan is built around market flexibility.
| Feature | FHA-Insured HECM | Proprietary Reverse Mortgage |
| Governing Body | U.S. Dept. of Housing & Urban Development (HUD) | Private Lenders (Banks, Financial Institutions) |
| Non-Permanent Resident Eligibility | Ineligible for case numbers after May 25, 2025 | Varies by lender; often eligible under “Foreign National” programs |
| Lawful Permanent Resident Eligibility | Eligible, treated the same as U.S. citizens | Generally eligible, subject to individual lender rules |
| Minimum Age | 62 | Varies; can be as low as 55 |
| Borrowing Limit | Capped at FHA maximum ($1,209,750 in 2025) | No federal cap; can be $4 million or more |
| Mortgage Insurance | Required (a significant upfront and annual fee) | Not required (results in lower closing costs) |
| Interest Rates | Generally lower and more regulated | Generally higher to cover the lender’s risk |
| Key Protection | Federally mandated counseling and non-recourse guarantee | Fewer federal protections; non-recourse feature is standard but lender-dependent |
Beyond Federal Rules: How State Laws Add More Complexity
While federal law sets the baseline for who can get a HECM, states can add their own layer of consumer protection laws that apply to all reverse mortgages, including proprietary ones. These laws cannot make an ineligible person eligible for a federal loan, but they can make the lending process safer for everyone.
California’s Cooling-Off Period and Required Worksheet
California has some of the strongest protections in the country. Lenders are forbidden from accepting a final application or charging any fees until seven days have passed since the borrower completed their counseling session. This mandatory “cooling-off” period is designed to prevent high-pressure sales tactics.
Additionally, California requires lenders to provide a “Reverse Mortgage Worksheet Guide” before counseling. This guide forces borrowers to confront difficult questions about what happens if they default, how the loan impacts heirs, and whether they have explored less costly alternatives. This ensures critical risks are discussed with an independent counselor.
Texas Homestead Protections and a New Conflict
Texas law has strong constitutional protections for a person’s primary home, or “homestead.” A reverse mortgage must have the written consent of every owner and their spouse. The loan must also be non-recourse, meaning the lender can never go after the borrower’s other assets to repay the debt.
A new and serious complication in Texas is Senate Bill 17, effective in 2025. This law prohibits individuals from certain “designated countries” (including China, Russia, Iran, and North Korea) from purchasing or acquiring real property. A non-U.S. citizen from one of these countries who already owns a home could face a legal challenge when trying to get a reverse mortgage, as the transaction creates a new lien that could be interpreted as a prohibited “acquisition” under this state law.
New York’s Stand Against Predatory Practices
New York law provides several key safeguards. The state explicitly prohibits lenders from requiring a borrower to purchase an annuity or other financial product as a condition of getting a reverse mortgage. This rule targets a historically predatory practice where seniors were pressured into buying unsuitable, high-fee investments with their loan money.
New York also mandates a three-day waiting period after an application is submitted before any final commitment can be signed, and this waiting period cannot be waived by the borrower.
Critical Mistakes to Avoid
Navigating a reverse mortgage is filled with potential missteps. For a non-U.S. citizen, these mistakes can have even more severe consequences.
- Mistake 1: Applying for a HECM with a Temporary Visa.
- Why it’s a mistake: After May 25, 2025, the FHA’s rules are absolute. Applying as a non-permanent resident is an automatic denial.
- Negative Outcome: You will waste time and potentially non-refundable application or appraisal fees, only to be rejected on the basis of your immigration status alone.
- Mistake 2: Ignoring the Ongoing Costs.
- Why it’s a mistake: A reverse mortgage does not eliminate your financial responsibilities. You are still the owner and must pay property taxes, homeowners insurance, and maintain the home.
- Negative Outcome: Failure to pay these property charges is a loan default. The lender can and will foreclose on your home, forcing you to move out.
- Mistake 3: Misunderstanding the Impact on Government Benefits.
- Why it’s a mistake: The loan proceeds are not taxable income, but they can be counted as an asset for means-tested programs like Medicaid and Supplemental Security Income (SSI).
- Negative Outcome: If you take a lump sum and don’t spend it in the same month, the remaining cash can push your assets over the program’s strict limits, causing you to lose essential health and income benefits.
- Mistake 4 (For Non-Permanent Residents): Not Scrutinizing the Proprietary Loan Contract.
- Why it’s a mistake: Private loan documents are written by the lender to protect the lender. They may contain clauses that define a loss of legal residency (e.g., a visa non-renewal) as a default event.
- Negative Outcome: A change in your immigration status could trigger the loan to become immediately due and payable, putting you at risk of losing your home because of a situation outside the lender’s control.
Reverse Mortgages: Do’s and Don’ts
| Do’s | Don’ts |
| ✅ Verify Your Exact Immigration Status First. Know if you are a Lawful Permanent Resident or a non-permanent resident before you even speak to a lender. | ❌ Don’t Assume Eligibility. Never assume you qualify for a HECM just because you are legally in the country and have a Social Security number. |
| ✅ Attend Counseling with an Open Mind. Use the mandatory counseling session to ask hard questions and explore all alternatives to a reverse mortgage. | ❌ Don’t Get Pressured. Be wary of any lender or broker who rushes you, downplays the costs, or suggests using the money for risky investments. |
| ✅ Shop Multiple Lenders. This is especially critical in the private proprietary market, where rates and fees can vary dramatically between institutions. | ❌ Don’t Forget Your Heirs. Discuss your plans with your family so they understand that the loan will need to be repaid after you are gone. |
| ✅ Plan for Ongoing Expenses. Create a realistic budget to ensure you can always afford property taxes and homeowners insurance for the rest of your life. | ❌ Don’t Ignore State Laws. Your state may offer additional protections or have unique rules that you need to be aware of. |
| ✅ Consult with an Attorney. Have an independent attorney, ideally one familiar with both real estate and immigration law, review all loan documents before you sign. | ❌ Don’t Hide Changes from Your Lender. If you plan to be away from your home for an extended period, you must notify your loan servicer to avoid violating the principal residence rule. |
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Pros and Cons of a Reverse Mortgage
| Pros | Cons |
| Immediate Cash Flow: Provides access to tax-free funds without needing to sell your home, which can supplement retirement income. | High Upfront Costs: Origination fees, closing costs, and (for HECMs) a large mortgage insurance premium make them expensive loans. |
| No Monthly Loan Payments: Eliminates the burden of a monthly mortgage payment, freeing up cash for other needs. | Depletes Home Equity: The loan balance grows over time, reducing the value of the asset you can leave to your heirs. |
| Stay in Your Home: Allows you to “age in place” in a familiar community without being forced to downsize. | Risk of Foreclosure: You can still lose your home if you fail to pay property taxes and homeowners insurance or fail to maintain the property. |
| Non-Recourse Protection: You or your heirs will never owe more than the home’s value at the time of sale. | Impact on Benefits: Can jeopardize eligibility for means-tested government programs like Medicaid and SSI if funds are not managed carefully. |
| Flexible Payouts: You can receive funds as a lump sum, a line of credit, monthly payments, or a combination. | Complex and Binding: It is a complicated legal contract with long-term consequences that can be difficult to fully understand without expert guidance. |
Frequently Asked Questions (FAQs)
1. I have a Green Card. Can I get a reverse mortgage? Yes. As a Lawful Permanent Resident, you are eligible for an FHA-insured HECM under the same rules as a U.S. citizen. You must provide your valid Green Card as proof of your status.
2. I am here on a work visa. Can I get a HECM? No. After May 25, 2025, non-permanent residents, including all work visa holders, are ineligible for the FHA-insured HECM program. Your only option would be a private, proprietary reverse mortgage loan.
3. Does my spouse’s citizenship help if I’m not a permanent resident? No. If you are a non-permanent resident, the entire HECM application may be deemed ineligible, even if your spouse is a U.S. citizen. The citizen spouse would have to apply alone.
4. Are proprietary reverse mortgages safe? They can be, but they lack federal insurance and have fewer consumer protections than HECMs. They often come with higher interest rates, and you must carefully research the lender and the loan terms.
5. Can I get a reverse mortgage without a U.S. credit history? It is difficult. For a HECM, it may be possible. For a proprietary loan, some private lenders specializing in “Foreign National” programs may accept alternative credit documentation, like international credit reports or utility payment histories.
6. What happens if I don’t pay my property taxes? You will default on the loan. The lender will have the right to demand full repayment, and if you cannot pay, they will start foreclosure proceedings to sell your home.
7. Is the money I receive from a reverse mortgage taxable? No. The funds are considered loan proceeds, not income, so they are not subject to federal income tax. You should still consult a tax professional about any state or local implications.
8. Can I still leave my home to my children? Yes, but your heirs will inherit the home along with the loan debt. They must repay the full loan balance, typically by selling the home, to keep the property. Any remaining equity is theirs.
9. What if my visa is not renewed and I have a proprietary loan? This is a major risk. Your loan agreement could define a loss of legal residency as a default event. This could make the entire loan balance due immediately, potentially forcing a sale of your home.
10. Do state laws in California or New York let me get a HECM if I have a visa? No. State laws cannot override federal eligibility rules for a federal loan program. If federal rules make you ineligible for a HECM, no state law can change that.