Guides
Reverse Mortgage Taxes, Insurance, and HOA Dues
What homeowners must keep paying after a reverse mortgage, why property charges matter, and how families should review ongoing obligations.
One of the most important reverse mortgage misunderstandings is the idea that the homeowner no longer has housing obligations. A reverse mortgage may remove the requirement for a traditional monthly mortgage payment, but it does not remove the cost of owning and maintaining the home.
What property charges usually include
- Property taxes.
- Homeowners insurance.
- HOA dues, community dues, or assessments when applicable.
- Flood insurance or other required coverage when applicable.
- Maintenance, repairs, and keeping the home in reasonable condition.
- Utilities and ordinary costs of living in the home.
These obligations matter because the reverse mortgage is built around the borrower continuing to occupy and maintain the home as the principal residence. If taxes, insurance, or other required charges fall behind, the loan can be placed at risk.
Why lenders review ability to pay
HECM lenders perform a financial assessment to evaluate whether the homeowner appears able to meet ongoing obligations. This review can include income, assets, credit history, property-charge payment history, and other factors. In some cases, a Life Expectancy Set-Aside may be required to help pay certain property charges.
California and Arizona examples
In California, property taxes, insurance, and maintenance can be significant even when a homeowner has substantial equity. Adult children helping parents should look at the annual cost of keeping the home, not only the estimated proceeds.
In Arizona, HOA and 55+ community dues are often central to the conversation. A Mesa or Scottsdale homeowner may have a manageable home but meaningful community obligations. Those dues do not disappear after closing.
Questions to review before applying
- What are annual property taxes and insurance premiums?
- Are HOA dues or assessments likely to rise?
- Does the home need repairs now or soon?
- Would the homeowner be able to handle a large insurance or maintenance surprise?
- Would downsizing reduce ongoing obligations more effectively?
Common family questions
Do I still pay property taxes with a reverse mortgage?+
Yes. Property taxes remain the homeowner's responsibility after a reverse mortgage.
Do HOA dues continue?+
Yes. HOA dues, community dues, and applicable assessments remain the homeowner's responsibility.
What happens if property charges are not paid?+
Missing required property charges can create serious loan issues and may put the reverse mortgage at risk.