Reverse Mortgage (HECM) Guide for Washington Homeowners 62+
Washington State has approximately 480,000 homeowner households led by someone 62 or older. With a median home value of $511,000 — driven by the Seattle metro, Eastside communities, and Bellingham — Washington seniors have often built significant equity. For retirees managing high living costs in one of the Pacific Northwest's most expensive states, a HECM can provide tax-free income without requiring a move.
Source: U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25077); U.S. Census Bureau ACS 2022 1-Year Estimates (Table B25007)
$1,249,125
Washington's median home values are well below the 2026 FHA HECM limit of $1,249,125, though premium Seattle and Eastside properties can approach or exceed the cap. For homes above $1,249,125, HECM proceeds are capped at that ceiling — proprietary reverse mortgages may offer higher limits.
Source: HUD Mortgagee Letter 2025-21
Washington Reverse Mortgage Protections
Washington State has notable reverse mortgage protections. Under RCW § 61.34, lenders must provide specific written disclosures about costs and alternatives. Washington requires independent HUD counseling before accepting any application, and mandates a 7-day cooling-off period between counseling completion and loan application. Lenders must also provide information about alternatives, including Washington's Senior Property Tax Exemption program.
Source: RCW § 61.34 (Washington Reverse Mortgage Act); Washington Department of Financial Institutions
HUD-Approved Counseling in Washington
Federal law requires an independent counseling session before any HECM application. Counseling can be done by phone and typically takes 60–90 minutes. Find a HUD-approved counselor in Washington →
Washington HECM FAQ
Are HECMs available in Washington State?
Yes. HECMs are available throughout Washington, including Seattle, Spokane, Tacoma, and rural communities. FHA-approved lenders licensed in Washington can originate HECM loans on eligible primary residences.
Does Washington State require additional reverse mortgage counseling?
Yes. Washington's Reverse Mortgage Act (RCW § 61.34) requires lenders to provide written disclosures about costs and alternatives, and mandates a 7-day waiting period between counseling completion and loan application. The required HUD counseling session must occur before any application, and lenders must disclose the state's Senior Property Tax Exemption as an alternative.
How do Washington property taxes interact with a HECM?
HECM borrowers must keep property taxes current. Washington offers a Senior Citizen and Disabled Persons Exemption program for qualifying homeowners 61 and older with income below $58,423 — reducing assessed value by $50,000 or 30% (whichever is greater) for property tax purposes. This can meaningfully reduce annual tax obligations for HECM holders.
What if I have a HELOC on my Washington home?
An existing HELOC must be paid off and closed at HECM closing. The payoff typically comes from HECM proceeds. Washington lenders will verify clear title before disbursement.
Where can I find a HUD-approved HECM counselor in Washington State?
Use the HUD HECM Counselor Search (link above) filtered to Washington. Agencies are available in Seattle and Spokane. Phone counseling is available statewide, including Eastern Washington and rural communities.