Reverse Mortgage (HECM) Guide for Colorado Homeowners 62+
Colorado has approximately 370,000 homeowner households led by someone 62 or older. The state's median home value of $490,000 — pushed higher by the Denver metro, Boulder, and Front Range growth — means many Colorado seniors have built meaningful equity. For retirees managing rising costs in a high-cost state, a HECM can provide supplemental income or eliminate monthly mortgage payments.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
Check My Eligibility — Free & No Obligation2026 FHA HECM National Lending Limit
Colorado's median home values fall comfortably below the 2026 FHA HECM limit of $1,249,125, so most Colorado homeowners can calculate HECM proceeds against their full appraised value. Luxury mountain properties in markets like Aspen or Vail may exceed the cap.
Source: HUD Mortgagee Letter 2025-21
Colorado Reverse Mortgage Protections
Colorado follows federal HUD requirements for HECM counseling without adding separate state mandates specific to reverse mortgages. Colorado's general mortgage lending statutes (C.R.S. § 5-3.5) provide baseline consumer protections, and the state's Division of Banking oversees lender conduct.
Source: Colorado Revised Statutes § 5-3.5; Colorado Division of Banking
How Much Could You Get? — Colorado
Adjust your age and home value to see a quick estimate. Full calculator →
Estimate based on HUD PLF tables at 6.5% assumed expected rate. Actual amounts depend on formal appraisal and lender terms.
See if you qualify →Source: HUD Principal Limit Factor tables · HUD HECM page
Find a HUD-Approved HECM Counselor in Colorado
Before you can apply for any HECM, federal law requires a one-on-one counseling session with an independent HUD-approved counselor. This is not optional — no FHA-approved lender may accept your application without a valid counseling certificate. The session covers how HECMs work, costs, alternatives, and your rights as a borrower. It typically takes 60–90 minutes and can be done by phone.
Find a HUD Counselor in Colorado →This link opens the HUD HECM Counselor search tool. Filter by state (CO) to find agencies near you.
The 6 Basic HECM Eligibility Requirements
These are the same federal requirements that apply to every HECM in every state, including Colorado.
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Age 62 or older The youngest borrower on the title must be at least 62.
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Your primary home You live in this home as your main residence — not a vacation or rental property.
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Significant home equity You own the home free and clear, or have paid down most of the mortgage — generally 50% or more equity.
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Located in an eligible state FHA HECM is available in all 50 states, Washington D.C., and U.S. territories — including Colorado.
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No existing reverse mortgage Standard HECMs are for first-time reverse mortgage borrowers. Other options exist if you've had one before.
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Plan to stay in your home A HECM is designed for homeowners who intend to remain in their home long-term.
See if a HECM may fit your situation — Colorado homeowners.
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HECM Questions for Colorado Homeowners
Are HECMs available in Colorado?
Yes. HECMs are available throughout Colorado, including rural and mountain communities. Any FHA-approved lender licensed in Colorado can originate a HECM on an eligible primary residence.
Does Colorado require additional reverse mortgage counseling beyond federal requirements?
No. Colorado relies on the federal HUD counseling mandate. Before any HECM application, you must complete a one-on-one session with a HUD-approved independent counselor — but there is no additional Colorado-specific counseling requirement.
How do Colorado property taxes interact with a HECM?
Colorado HECM borrowers must keep property taxes current. Colorado offers a Senior Property Tax Exemption that exempts 50% of the first $200,000 of a primary residence's value for qualifying seniors 65 and older who have lived in their home for at least 10 years. This can meaningfully reduce annual tax obligations — important when holding a HECM.
What if I have a HELOC on my Colorado home?
An existing HELOC must be paid off and the line closed at HECM closing, because a HECM must be the first and only lien. The HELOC payoff typically comes from HECM proceeds. If your HELOC balance is high relative to available equity, a lender will assess whether the HECM makes financial sense after payoff.
Where can I find a HUD-approved HECM counselor in Colorado?
Use the HUD HECM Counselor Search (link above) filtered to Colorado. Phone counseling is widely available, making it accessible to homeowners in rural or mountain communities across the state.
Back to Main Guide
Return to the HomeBridge home page for our full HECM education hub.
HomeBridge Home →Eligibility Checklist
Review all six HECM eligibility requirements in detail.
View Eligibility Checklist →Other State Guides
Explore HECM guides for neighboring states.
Arizona HECM Guide → Utah HECM Guide →HECM Education Hub
Deepen your understanding before talking to a lender. Our plain-language guides cover how HECMs work, who qualifies, and what protections you have.
Browse all education articles → Browse all HECM FAQs →