Colorado's median home value in the calculation is $530,000, and any reverse mortgage Colorado homeowners get lets you draw on your equity without monthly mortgage payments. This type of federal loan goes by the name Home Equity Conversion Mortgage, or HECM. Over the span from October 2025 until August 2026, HUD insured 915 Colorado loans. The median initial principal limit stood at $231,870 with a 5.75% median note rate. At the start, the total you can borrow is your principal limit. Another 39 loans hit the $1,249,125 national lending limit.
Your tax bill under the $200,000 senior property tax exemption
Your home's actual value up to $200,000 gets a 50% tax cut through Colorado's Senior Property Tax Exemption, when the state budget permits it. Local governments then get reimbursed by the state. Federal rules set by the Consumer Financial Protection Bureau say all reverse mortgage borrowers must pay property taxes and homeowners insurance, no matter the state. The house also has to remain your principal residence and you have to keep it in good condition. If you get behind on property taxes, your loan can go into default, and the lender is allowed to call it due.
You must be 65 or older by January 1 of the application year to get the exemption. The home must have been your primary residence and owned by you for a minimum of 10 consecutive years. There's no income cap in the state rules; your application goes to your county assessor by July 15.
Form 104PTC and the state treasurer deferral: delaying your bills
Property taxes can be put off by homeowners age 65 or older who use Colorado's rebates, exemptions and deferrals programs. Your bill gets paid with funds loaned by the state treasurer, who then places a lien on the property. A lien means someone has a legal claim on your home to cover the unpaid balance. Interest begins on May 1. Submit your application to your county treasurer from January 1 to April 1, and you have to renew it every year.
Form 104PTC is how the Department of Revenue separately handles the Property Tax/Rent/Heat Rebate. It's for Colorado residents who lived here the full year and are 65 or older, surviving spouses 58 or older, and disabled people.
Does Colorado law HB23-1266 let you leave your home?
Yes, state law says you can be away from your home for a while without starting repayment. Your principal residence is the home where you spend most of the year. Effective June 7, 2023, Colorado law HB23-1266 says you can be away temporarily for a period of up to 60 days. If the property is adequately secured, you can stay away for a period of up to 1 year.
There's also a 3rd exception under the law for when a natural disaster or serious incident outside your control leaves your home uninhabitable. The law describes this as a force majeure event. Your loan won't be called due as long as you meet requirements like fixing the home and keeping in touch with your lender. At closing, lenders have to give you a written notice that spells out these disaster rules.
Supervision by the Colorado Division of Real Estate
Mortgage loan supervision and consumer complaints are handled by the Colorado Division of Real Estate. According to the Colorado Division of Banking, it can't handle complaints that involve mortgage companies, lenders or loan originators. It points you toward the real estate division.
In Colorado, 179 active reverse mortgage lenders are available for you to compare. Before you apply, you'll talk with a counselor at 1 of the 6 Colorado-based HUD-approved counseling agencies.
