Reverse Mortgages in Delaware

In Delaware, a homeowner 62 or older can convert part of their home equity to cash through a federally insured HECM reverse mortgage. Here is how the math works, what Delaware layers on top of the federal rules, and where to find a counselor.

Delaware applies the federal HECM program without enacting a separate state reverse-mortgage statute. What changes here is the licensing agency for the originator, the realty transfer tax that falls on sales, and the metro distribution of HUD-approved counselors. About 20.0% of Delaware residents are 65 or older (U.S. Census Bureau, American Community Survey 5-year estimates 2018–2022), a high share driven by the state's status as a retirement-relocation destination, concentrated in Sussex County's coastal communities around Rehoboth and Lewes and in the Wilmington and Dover areas.

The 2026 federal HECM lending limit of $1,249,125 applies in Delaware (HUD Mortgagee Letter 2025-22). For the structural basics of the product, see what a reverse mortgage is and how it works.

What reverse mortgage rules are specific to Delaware?

No state-specific counseling overlay. Delaware applies the federal HUD-approved counseling requirement (HUD Handbook 4000.1, Section II.B) and adds no separate state session. Phone counseling is permitted; the certificate is valid for 180 days from the session date.

Lender and originator oversight. Mortgage loan originators and lenders operating in Delaware are licensed and supervised by the Delaware Office of the State Bank Commissioner. The Office administers mortgage-licensing standards under the Delaware Code Title 5, which sets licensing, disclosure, and conduct standards for originators. Originator licenses are verifiable through NMLS Consumer Access.

Realty transfer tax falls on sales, not the mortgage. Delaware imposes a realty transfer tax on the conveyance of real property — a combined state and local rate that is among the higher transfer-tax rates in the country (Del. Code Title 30, Chapter 54). This tax applies when title is conveyed, not when a HECM mortgage is recorded, so a HECM origination on a home the borrower already owns does not trigger it. The county recorder of deeds charges a per-document recording fee at closing.

No homestead obstacle to the HECM lien. Delaware does not provide a broad dollar-amount homestead exemption like many states, but no state exemption blocks a HECM lien because the borrower consents to the security instrument at closing.

Surviving non-borrowing spouse. Delaware applies the federal HUD ML 2015-15 deferral framework through the loan note. There is no separate state statute layered above the federal rule.

How much can you borrow with a reverse mortgage in Delaware?

The state median owner-occupied home value is about $326,800 (U.S. Census Bureau, ACS 5-year, table B25077), well below the $1,249,125 federal HECM cap (HUD Mortgagee Letter 2025-22). For a typical 70-year-old Delaware borrower with a paid-off home appraised near that median, the HUD principal-limit factor across a 6.0–7.5% expected-rate planning range returns roughly 35.0–41.5% of value before closing costs — about $114,000–$136,000 (an estimate, not a quote).

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For how Delaware ranks against the other 50 jurisdictions on standard-HECM fit, see the Delaware suitability score — a computed 0–100 comparison built from senior population share, median home value against the cap, recording-cost burden, and counselor access. Delaware's high retiree share lifts its score; its relatively high transfer-tax rate, which falls on sales rather than the HECM itself, weighs on it.

Do you need counseling for a reverse mortgage in Delaware?

Every Delaware HECM borrower completes a session with a counselor on HUD's HECM Roster before the lender may process the application (HUD Handbook 4000.1), and none of the 12 housing counseling agencies HUD lists in Delaware is on FHA's list of HECM counseling agencies as of October 7, 2026. On that list, neighboring Maryland has six, and Pennsylvania and New Jersey have five each; agencies set their own fees, and the HUD HECM Counselor Roster or 1-800-569-4287 also finds agencies that counsel by phone.

Will my heirs be on the hook?

A HECM is non-recourse: your heirs and your estate will never owe more than the home is worth at the time of sale, even if the loan balance has grown past the home's value (12 USC §1715z-20). For the heir-side timeline and the four disposition options, see reverse mortgage due and payable.

What does the borrower still have to pay?

The FHA-insured HECM is a loan, not a government benefit. It removes the monthly principal-and-interest payment but does not remove the borrower's other obligations. Throughout the life of a Delaware HECM the borrower must:

• Keep property taxes current. Delaware has comparatively low effective property-tax rates, but non-payment is still a default event under the HECM note and can trigger a property-charge foreclosure.
• Maintain homeowners insurance. Standard hazard coverage, plus flood insurance where applicable for the coastal Sussex County properties in FEMA Special Flood Hazard Areas.
• Occupy the home as a primary residence. Moving out for more than 12 consecutive months, including a permanent move into assisted living, triggers the loan's due-and-payable clause.
• Keep the home in reasonable repair. Significant deferred maintenance can constitute a property-charge default under the HECM contract.

These obligations are federal and apply identically in every state.

What about jumbo in Delaware?

For a Delaware home appraised above the $1,249,125 federal HECM cap, proprietary jumbo programs (Finance of America's HomeSafe, Longbridge Platinum, and Mutual of Omaha's SecureEquity) lend up to $4 million and are not FHA-insured. Mutual of Omaha's SecureEquity rate sheet lists Delaware among its approved states (Mutual of Omaha, SecureEquity brokered rate sheet effective September 9, 2026). Each lender sets its own state availability and minimum age, as young as 55 in some states (each lender's product page). See the HECM vs. jumbo comparison.

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