Reverse Mortgages in Utah

In Utah, a homeowner 62 or older can convert part of their home equity to cash through a HECM reverse mortgage. Here's how the math works, what Utah adds to the federal rules, and where to find a counselor.

Utah applies the federal HECM rules without adding a state-specific reverse-mortgage statute. About 11.6% of Utah residents are 65 or older (U.S. Census Bureau, American Community Survey 5-year estimates 2018–2022), the second-lowest 65-and-over share in the country after Alaska; the eligible borrower pool is correspondingly smaller, concentrated in Salt Lake County, parts of Davis and Weber counties, and the St. George corridor in Washington County.

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

Last reviewed 2026-05-26

What reverse mortgage rules are specific to Utah?

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

Lender and originator oversight: Utah Division of Real Estate. Originator licenses are verifiable through NMLS Consumer Access.

No state mortgage tax. Utah county recorders charge a flat per-document fee; total recording costs typically run $40 to $80.

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

Homestead exemption does not block the HECM lien. Utah's homestead exemption runs against unrelated general creditors, not against a lender to whom the borrower has consented at closing.

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

Utah home values have risen substantially through the 2020s but remain below the $1,249,125 federal HECM cap in nearly every metro. The cap binds primarily in select Salt Lake County submarkets (Federal Heights, parts of the Avenues, Sandy/Draper foothills), Park City and Deer Valley, and a small share of Wasatch Front benches. For a 70-year-old Utah borrower with a paid-off home appraised at $520,000, the principal-limit factor at current HECM rates returns roughly 48–54% of value before closing costs, producing a range in the high $240,000s to mid $280,000s (a planning estimate, not a quote).

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For how Utah ranks against the other 50 jurisdictions on standard-HECM fit, see the Utah suitability score.

Do you need counseling for a reverse mortgage in Utah?

Every Utah HECM borrower completes a HUD-approved counseling session before the lender may accept the application. Sessions run 60–90 minutes and cost $125–$200, with fee waivers available for borrowers under the income threshold the agency publishes. Phone sessions are the default; in-person sessions are available in Salt Lake City and a small number of other Wasatch Front locations.

Find a Utah-authorized counselor on the HUD HECM Counselor Roster or call 1-800-569-4287. Salt Lake metro generally schedules within 1–2 weeks; rural counties (particularly in the southeast) can run longer.

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 benefit. It removes the monthly principal-and-interest payment but does not remove the borrower's other obligations. Throughout the life of a Utah HECM the borrower must:

• Keep property taxes current. Utah county treasurers bill annually, with payments due by November 30 each year. Non-payment is a property-charge default under the HECM note.
• Maintain homeowners insurance. Standard hazard coverage; in mountain and foothill submarkets, wildfire deductibles and exclusions have tightened in recent years and the borrower must keep coverage adequate.
• Occupy the home as a primary residence. Moving out for more than 12 consecutive months triggers the loan's due-and-payable clause.
• Keep the home in reasonable repair. Significant deferred maintenance can constitute a property-charge default.

These obligations are federal and apply identically in every state.

What about jumbo in Utah?

A small share of Utah properties, primarily in Park City, Deer Valley, the upper Avenues and Federal Heights in Salt Lake City, and parts of the Wasatch Front benches, appraise above the $1,249,125 federal HECM cap. For those, jumbo / proprietary programs (HomeSafe, Platinum Preserve, SecureEquity+) admit at age 55 in Utah and extend the cap to $4M loan value. See the HECM vs. jumbo comparison.

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