Does the VA Offer Reverse Mortgages? Here's the Truth for Veterans 62+
No. The Department of Veterans Affairs does not offer its own reverse mortgage. Veterans age 62 and older who are considering one typically explore an FHA-insured Home Equity Conversion Mortgage (HECM) through an FHA-approved lender. A HECM is a loan, not a VA benefit or a grant, and the same federal program rules apply to veterans and nonveterans.
I’m Brett Stacy, an Army dad and a veteran of the mortgage industry. I’ve spent years around homeownership conversations, and I believe people deserve a plain answer before anyone discusses a product. Reverse mortgages can be complex. My purpose here is to help you ask better questions, understand the responsibilities, and consider your options without pressure.
Gratitude isn't a certification. It's something you do. To me, that means helping veterans protect their choices and their home equity, not simply saying thank you.
What reverse mortgage is available to veterans?
The federal reverse mortgage program most commonly discussed is the FHA-insured HECM. The U.S. Department of Housing and Urban Development (HUD) explains that a HECM is available through an FHA-approved lender. Generally, the youngest borrower must be at least 62, and the home must meet program requirements.
A HECM may let an eligible homeowner access part of their home equity without making monthly principal-and-interest payments. But no monthly mortgage payment does not mean no responsibilities:
- You must continue to occupy the home as your principal residence.
- You remain responsible for property taxes and homeowners insurance.
- You must maintain the property.
- Interest and fees are added to the loan balance over time.
- The loan is eventually repaid under its terms, often when the borrower sells, moves out permanently, or dies.
As the Consumer Financial Protection Bureau explains, a reverse mortgage is not free money. The balance can grow, reducing the equity remaining in the home. A HUD-approved counselor can help you review a HECM before you decide.
What is Red, White & Secure™?
Red, White & Secure™ is Operation T.A.G.’s veteran-exclusive reverse mortgage initiative, developed in partnership with PRMG. It may provide eligible veterans with up to $6,000 in origination fee savings. This is a potential savings, not a guarantee. Eligibility, loan terms, fees, and savings are determined by PRMG and depend on the borrower’s circumstances and applicable requirements.
The reverse mortgage itself remains a repayable loan. Any potential origination-fee savings do not turn it into a grant or erase the borrower’s ongoing responsibilities.
Operation T.A.G. is a 501(c)(3) nonprofit, not a lender. PRMG handles applications, lending decisions, loan terms, and eligibility determinations. We help educate and connect families with licensed lending partners.
How do the programs compare by potential dollar value?
Averages are not published for these programs, so it would be misleading to claim an average amount a family receives. The list below ranks them by the stated maximum or quantified potential value instead. These figures are not guaranteed and are not directly comparable: one is a closing-cost credit, another is potential fee savings, and a HECM’s loan amount depends on individual circumstances.
- Hometown Hero Credit™, up to $21,000; non-repayable. Eligible military families may receive a credit equal to 2% of the loan amount toward eligible homeownership costs, subject to program and lending requirements. This is for eligible purchases or refinances, not reverse mortgages, and is not a cash payment. Learn about Hometown Hero Credit.
- Red, White & Secure™: potential savings of up to $6,000; reverse mortgage is repayable. Potential origination-fee savings are subject to eligibility and applicable terms. Ask PRMG for the current written details.
- Standard FHA-insured HECM: amount varies; repayable. The amount available depends on factors including borrower age, interest rates, and home value. There is no single dollar amount that applies to every veteran.
For veterans buying a home, Hometown Hero Credit may be a related form of veteran home buying assistance. VA loan benefits, veteran down payment assistance, and military housing grants are separate topics with their own eligibility rules. A licensed professional can help you understand which options may apply to your purchase. CalVet and Hometown Hero Credit are separate programs that cannot be combined; discuss your options with a licensed professional.
Why should veterans take time to check the details?
Because clear information matters. In June 2024, the CFPB announced action concerning alleged reverse-mortgage servicing failures involving NOVAD and Sutherland. The resulting consumer redress process involves $11.5 million and is administered by Rust Consulting. The CFPB lists compensation as ongoing beginning January 30, 2026. If you believe you may be affected, use the official CFPB case page or call Rust Consulting at 1-800-731-9353.
There is also a more recent legal development. On January 29, 2026, AARP Foundation announced a class action alleging that certain reverse-mortgage companies charged prohibited fees. The allegations are not a court finding. Read the AARP Foundation announcement for details.
These cases are reminders to take your time, ask for an itemized explanation of costs, and seek qualified independent guidance. A trustworthy professional should welcome your questions and give you room to compare options.
A simple, careful next step
- Learn the basics. Start with HUD’s HECM information and consider speaking with a HUD-approved counselor.
- Ask for written details. Request the loan’s fees, terms, borrower responsibilities, and how the balance may change over time.
- Compare alternatives. Talk with your family or a trusted adviser if you wish. You do not need to make a decision just because you asked questions.
If you would like to learn about Red, White & Secure™, contact Operation T.A.G. or call 760-456-8748. We can help connect you with a licensed partner. Your home, your equity, and your peace of mind deserve careful consideration.
FREE BOOK DOWNLOAD: Retirement Reset
For veterans and older homeowners thinking about their home equity, Brett Stacy’s free workbook, Retirement Reset, is designed to help you better understand your equity and explore your retirement options — a natural companion to a conversation about reverse mortgages. Download it at HometownHeroCredit.com — just click Books & Resources at the top of the page.
Standing up for those who stood up for us.
Frequently asked questions
Does the VA offer reverse mortgages?
No. The VA does not offer its own reverse mortgage. Eligible homeowners may consider an FHA-insured HECM through an FHA-approved lender.
Can I use my VA disability status to waive HECM fees?
A service-connected disability may qualify a borrower for a VA funding-fee exemption on certain VA-guaranteed loan types. That is separate from an FHA-insured reverse mortgage and does not automatically waive HECM fees. Ask a licensed professional about your specific situation.
Does a reverse mortgage have to be repaid?
Yes. A HECM is a loan. Although monthly principal-and-interest payments generally are not required while the borrower meets the loan obligations, the balance is repaid under the loan’s terms. Property taxes, insurance, and maintenance remain the homeowner’s responsibility.
Is Red, White & Secure™ a grant?
No. It is a reverse mortgage initiative developed with PRMG. Eligible veterans may receive up to $6,000 in origination-fee savings, subject to applicable terms, but the reverse mortgage remains repayable.
Is Operation T.A.G. the lender?
No. Operation T.A.G. is not a lender. PRMG handles applications, lending decisions, loan terms, and eligibility determinations.
Brett Stacy
Founder & National Director, Operation T.A.G.™
National Brand Ambassador, Hometown Hero Credit™
Military Family Advocate | Author | Speaker
OperationTAG.org | HometownHeroCredit.com